Kindle Fire and Nook Tablet undercut iPad but come with trade-offs

Kindle Fire and Nook Tablet undercut iPad but come with trade-offs

Paying for the newspaper on the Internet: The Gray Lady has pulled it off

A couple years ago I made the prediction that newspapers like The New York Times would soon be charging for their content. That prediction came to pass this year when it put up its paywall. Now if you want to read anything but the latest headlines in The Gray Lady (as The Times has historically been called by those who both love and hate it) you have to pay a subscription. Since The Times is seen as an industry bell weather, as more people opt to pay for its content, other newspapers and magazines are following its lead.

Gradually, over the next few years, the amount of reliable information for free over the Internet will diminish.

While this may be seen as bad news for the average online browser, it is actually a good thing. For the past decade, newspapers and periodicals have seen their profits erode as more and more people canceled paid subscriptions in favor of accessing information online for free. Yet, newspaper and magazine reporters, editors and photographers still expected to be paid.

Initially news and feature publications thought advertising would pay their overhead. But that didn't work because display and pay-per-click ads never generated anywhere near the amount required to keep them in business.

So now, as we travel back to the past, we will need to once again start choosing which publications we are willing to pay to access.

Personally if the choice is between paying to read my favorite newspapers and periodicals or to see them go out of business, I'll choose to pay.

The same is true for books. On occasion I may choose to download an ebook or audio book over a printed version, but I do expect to pay for the books I read.

Once all the best content is locked behind a paywall, what will be left on the Internet? Shopping, blogs, websites, email, etc. All manner of items people are willing to share for free. The Internet will remain free. Just don't expect authors, writers reporters and photographers to work for free. What we once willingly paid for we should once again support. Do we actually think that content should be free? If someone comes to our home to fix the plumbing we expect to pay. Same as when we go to the theater, see a concert or visit the zoo. When we receive a service we compensate those who provide it. Same for books, newspapers and periodicals.

When someone provides us with a service we reciprocate by paying. As the old saying goes, "ain't no such thing as a free lunch."

Don't Be Afraid to Fail

This short motivational video provides an important lesson for all us humans who sometimes fail.

First Follower: Leadership Lessons from Dancing Guy

"Bookish" just another crazy idea from drowning publishers?

The problem for the largest book publishers is that their control over the book market is waning. If predictions are correct, and the book industry follows the music industry, pretty soon it will be nearly impossible to find a full-service bookstore with a deep selection. A decade ago there used to be record stores with thousands of recordings to peruse. But those days are over. Long gone are major chains like Sam Goody and Tower Records. In their place are online sellers like Amazon and digital download applications like iTunes.

As a result the major book publishers are scared. Borders Books has declared bankruptcy, can Barnes and Noble be far behind? Not to mention the local independent bookseller.

Their solution, coming this summer, is Bookish. A place where book publishers, authors and readers can get together. On its surface, it would seem to be a good idea. But is it?




So far there are three major publishers involved: Simon and Schuster, Penguin Group and Hachette Book Group (Random House). They have not indicated whether the website will be open to all publishers, large and small, or just the major publishers. If they open the site to every publisher and it is well organized and easy to navigate—and fair to all—it could just work. But can a tiger change its stripes? The large multinational publishers have not demonstrated any inclination to work with others over the years. In fact, they have done their best to intentionally keep the playing field anything but level.

Going back to the music business. At one time, there were a handful of major record labels who controlled the sales and distribution of records. As a result they could pick which artists the public listened to and which records were purchased. But that all changed with the dawning of the Internet age and with it the ability for musicians to reach the public directly. The music business changed and the major record labels were left behind.

Will what happened to the major record labels happen to the large book publishers?

The very thought is keeping big publishers awake at night.

But, how do the major publishers suddenly begin cooperating when they have fought, tooth and nail, for so long to keep their grip over the distribution and sale of books? And do they allow other lesser-known small publishers a seat at the table when they have been instrumental in keeping they out of many of the markets?

What will happen with this latest initiative is unknown. But unless they open it up for all publishers and all authors, it will just be one more lame attempt at protecting something that will surely slip out of their grasp anyway.

Where were you when you first heard about the death of Osama bin Laden?

We all remember where we were on 9/11 when we were attacked. Now we hear about the death of Osama bin Laden. However, this time most of us were asleep since the news was not released until after 11 PM Eastern Time.

Interestingly, I had placed my iPod Touch on the bed stand. All of a sudden a light went on in the room. It was the iPod. One of the Apps on my iPod is CNN. At around 11 they issued an emergency bulletin which turned on the device. I immediately got up, turned on the television and heard the news.

Most people in the eastern portion of the United States, I'm sure, heard the news when they awoke this morning. But as we determine what technology each of us has access to (and how that technology can access us), it is interesting to ask the question about where we were when we first heard the news.

Seth Godin just returned my email—God is good!

Pretty much anyone in the blogosphere is familiar with Seth Godin whose daily emailed blog populates the inbox of hundreds of thousands with his incredible wisdom and breakthrough thoughts. Godin's books include bestsellers such as Unleashing the Idea Virus, Linchpin and the newly released Poke the Box. Long a proponent of building a crowd of followers through the Internet in order to market products and ideas, he recently dropped his own publisher so that he could sell directly through Amazon and other online channels.

Yesterday in his daily blog Godin commented on self publishing superstar Amanda Hocking, whose books are only available through Kindle and are selling over a hundred thousand downloads each month. It was his assertion that she did not need a publisher to thrive. Today, however, in The New York Times is an article about Hocking being in negotiations with traditional publishers to get a contract.

I wondered what Seth Godin thought about it and was surprised when he answered my email. His comment, "when people with $ can take bigger risks, it's smart business to use that leverage if it's important to you.


Wonderful advice and so true. 


Big media operates in its own world and is only open to those who have already proven they either don't need it—like banks only lending money to those who have no need—or who are wanting to leverage their own celebrity to earn maximum money. 


So what is a budding author to do?


Just as an actor must first prove her worth by taking any gig that opens up and is willing to sacrifice everything to start up her career, so too do authors. New and emerging authors must be willing to invest in their own writing career by promoting what they have written. There are no shortcuts. 


First, write what you know. 
Then promote what you write. 


How? It depends on your situation and what you have written. 


Are you comfortable with the Internet and related technologies? If not, either learn or find someone who can help. We live in a digital world and all communication comes through the Web, Apps or other new media. 


Is your topic something others are interested in? This is where many authors make their mistake. Instead of finding a niche audience they try to engage everyone within a broader market. That is something that can only work for the so-called big media conglomerates and well known authors. Instead look for a small audience that few are marketing to. This will allow you to gain a toehold so that you can establish yourself as a key player within that narrow niche. For example, if you are writing a how-to marketing book for small business, concentrate on a tiny sliver of that marketing pie. Something like "How To Market Non-Pasteurized Milk from Your Small Dairy Farm." Once you are able to establish credentials with a very small audience then you can widen your scope to include other areas within your niche (small dairy farms) or to reach others with similar businesses (example, small craft cheese producers or egg farmers marketing organic eggs might be similar markets to the non-pasteurized milk market). Bottom line, if you find a niche where few are concentrating their attention you can more easily own that market in terms of Internet search and ultimately for selling books, ideas or products. 


The days are over where people look to stores for new ideas or cutting edge products. Just trying to get established in conventional markets is far too expensive. Instead focus on where the competition is lacking by establishing whole new categories in terms of products, services and intellectual property. 

News Headline: Fight breaks out over e-books in Gaylord Michigan barber shop

While making the long trek north to the Upper Peninsula of Michigan last week I looked in the mirror and decided it was time for a haircut. Sixty miles south of the Mackinac Bridge is Gaylord which is a mecca for snowmobiles in the winter and golf during the warmer seasons.

Pulling off the Interstate I drove through the downtown and discovered City Barber Shop, an old fashioned barbershop that would remind one of Floyd's from the timeless Andy Griffith Show. I parked my car and went inside. There, sitting on their barber chairs, were three barbers: A young woman, a middle age man and a older man. The young woman showed me to her chair and we soon were all focused on CNN playing on a small TV at the front of the shop.

Soon we started conversing. The young woman asked where I lived and what I did for a living. When I told her I was in publishing immediately the three barbers began to banter. The middle age barber asked what I thought of Kindle. Before I could answer the young woman said there was no way she would ever give up printed books. That led to a full scale outbreak of back and forth, sometimes heated, conversation on the merits of e-books. I weighed in to say that I thought tablets such as the iPad were going to be bigger than the Kindle due to their ability to stream video and other technology innovations.

Two points were interesting about the exchange. First, it was taking place in a small town barbershop in northern Michigan. Second, the middle age man was so excited about reading using a electronic device while the young woman wanted to hold onto the printed book. Research has told us for years that the typical reader in the United States is female and that young women are far more interested in books than young males. In other words, since females are already reading they are showing their satisfaction with conventional books by their actions. Young men, on the other hand, are more likely to be interested in video games than books.

Therefore, if the tablet reading experience can duplicate some of the live action from video games then it is more likely young men will be interested in reading.

In marketing the goal is to widen or enlarge existing markets. We know women are already reading. To grow the book market the key will be making the experience more interesting to younger men through disruptive technology. The market is now wide open for those who innovate with the content available in their books. This year over a hundred tablet devices similar to the iPad will be introduced. Those authors and publishers who are early adopters in their respective niche will surely benefit.

Because it works so darn well

The other day I finally broke down and purchased a Starbucks travel mug. After trying several cheaper varieties over the years, and not being happy with any of them, it was time to buy something better. My new Starbucks mug is perfect for its intended use and I'm 100 percent satisfied with it.

I'm sure you can think of items you use every day that you may have paid a little bit more for but are so happy with its performance, you are glad you purchased it.

Looking around for other items that come immediately to mind would surely include my Mac and all the related Apple products, from the iPod to the iPad. When I purchased my first Mac it was in the mid 80s when the initial model was introduced. It was the first computer I could easily operate and remains the same to this day. In addition, every other Apple product seamlessly works with it. Sure, I could pay less for my computers and other electronics. But I can't believe I'd be as satisfied.

Another item within my reach is the case for my iPod touch from a little company in San Francisco called WaterField Designs http://www.sfbags.com whose tiny bag fits perfectly and is so functional.

The truth is that we rely on many products in our everyday life that help us in so many ways.

This is also true of the books we own. The books I turn to with regularity are those that reliably help or inspire me. I'm always picking up my copy of David Ogilvy's classic Ogilvy on Advertising because the advice he provided decades ago is still true today. Other books I've practically worn the covers off include Thomas Woll's Publishing for Profit (great information for budding publishers), David Burns' The Feeling Good Handbook (for help overcoming anxiety) and Roger Finke and Rodney Stark's The Churching of America (tells how the church spread from coast to coast as our nation grew).

What those and other books have in common is that the information they contain is as good today as it was years ago. They are timeless.

The point is that as formats change from printed books to electronic books, the same will always be true. A book that provides helpful information is valuable to its owner.

These are not books that one throws away. They do not grow old like bananas but instead age gracefully.

If you are a lover of books and the information contained therein, you can look to your bookshelf and immediately find those that have become reliable sources of information.

As an author it is vital that before you publish, you take another look at the contents of your book and ask the question: Is this information timeless enough to publish? Does it work darn well?

Selling Books is Hard Work!

An entire generation of authors have dreamed of one day sitting on Oprah's couch and talking about their book. Well forgetaboutit! Oprah's pulling up stakes, moving to LA and starting her OWN network. The couch will soon be gathering dust at the Smithsonian or in a warehouse somewhere.

Authors have long thought that bookstores are where their books will sell. Nothing could be further from the truth. Yes, certain books sell in bookstores (or in the book department of a megastore like Walmart or Target). But the books that sell in the conventional bookstore (or book department) are mostly bestsellers by well-known authors. These are not venues where lesser-known books sell.

Why?

Because for a book to sell people have to know about it. They are not going to find it in a bookstore if they are not looking for it. And the bookseller is not going to place a stack of your books on the front display unless your book is well-known.

So how ARE most books sold?

The most successful authors are themselves visible to the public in one way or another.

Successful authors appear at events, give talks, hold signings and are active on the Internet.

By doing so, an author begins to establish their public identity or platform. They also begin to attract a following.

What might an author's platform look like?

Let's say you have written a book about cycling in out of the way places (my obsession) and have titled your book, The Long and Winding Road (with apologies to The Beatles).

To establish your platform to support your book you might do the following:

• write a daily blog about your biking experiences
• talk to a local bike shop about giving a talk to riding clubs
• locate events where bike enthusiast's gather and contact the organizers about speaking opportunities
• submit articles to cycling publications
• make sure the content of your book is easily searchable on search engines
• contribute articles to cycling websites

Key to your success will be getting in front of people who are as excited about the topic of your book as you are. It makes sense when you think about it. 

What books do you buy? 

I'm sure you only purchase books that are of interest to you. If your book is about knitting find venues where those interested in knitting go. Since I have no interest in knitting, myself, any efforts spent on me are wasted. To sell a book on knitting one might better spend their time and energy on those who are feverishly excited about the topic. 

As your public profile grows in your topic area, so will your book sales. 

While it may seem like hard work, if it is time spent with people who are interested in the same things as you—then it is more joy than work.

Borders Books and Best Buy—do they matter anymore?

A quick glance of articles on business pages reveals that there are struggles for two large merchants: Borders Books and Best Buy. The former being having such dire issues with its cash flow that is in negotiations with its vendors to extend payments of its bills and the latter trying to reboot its business model.

While we certainly would not want to wish any ill will toward either of these fine companies, or toward their stockholders and employees, they represent the latest in the ebb and flow of big retailing. Remember Circuit City and Montgomery Wards? Both chains were once thought invincible yet, still, they have exited the scene.

The truth is that large retailers, like all organizations, have natural life cycles that eventually lead to their demise, extinction or being absorbed by someone else. Though it sounds ruthless, it is what happens in a free market society.

In the case of Borders their business model was rooted in the notion that people would continue buying books in brick n' mortar stores. They were slow at responding to opportunities to sell via the Internet having long since ceded that position to Amazon.com. Further, as mass merchants such as Walmart and Target heavily discounted the price of bestselling books, Borders could not compete without matching their price. Now as readers are beginning to switch to e-books, they are left without the capability of developing their own e-reader or tablet device. With their stock price tumbling they are left with the prospects of reducing their overhead along with closing a number of stores. But it may be a case of too little, too late.

As for Best Buy, their business model was all about generating weekly traffic for small items—such as Cd's and DVDs—in the hope of becoming the destination for all things electronic. That strategy worked well until demand for these high traffic producing products diminished. This was due to the customer having more convenient options such as downloading music to their mobile devices or having movies directly delivered to their door. Additionally, fierce competition from big box discounters such as Walmart for large ticket items like flat screen TVs and computers further reduced their profit margins. Looking forward, it is hard to see Best Buy continuing to hit the sales and profitability targets that made them a Wall Street darling.

While we hope both companies survive, in order to do so they will have to reboot their business models and redefine their niche. In the case of Borders Books, because they waited so long and are in a weakened position, this will be just that more difficult. However with Best Buy, since it is still a strong company, they have the luxury of time and resources on their side. Key for both companies will be to ramp up their customer service and product offerings to differentiate themselves from the competition.

The fact is that we live in a time when the convenience of purchasing products online has resulted in far too many stand-alone retail stores. Just take a drive around your own neighborhood or business district and see how many empty storefronts are littering the landscape. Do we actually need so many stores?

In the world of publishing we live with the same reality. In the past decade, due mostly to self publishing, the number of new book titles published each year has more than quadrupled. This as the same time as the overall demand for printed books has shrunk. Do we really need so many books? Or might some of the intellectual content being produced be better served through blogs, websites, iPad applications and e-books? Only time will tell as the best produced book content continues to be essential to readers while those books that are ill conceived—or poorly written, designed and edited—are left to the scrap pile of history.