Here’s the blog link about this scam from The Washington Post.

There is a “loophole” in the LSI system that allows volume publishers (who publish more than 10 books
a year) to become certified and have setup costs waived. So literally they do cost nothing to print other
than the annual maintenance fee (which I seem to remember is about $12/year). With luck the fees will
bankrupt “Books LLC” because most of their books have fortunately never sold one copy (at least on
Amazon).

I want the hour back that I wasted researching this mess.

On May 8, 2009 Victor R. Volkman and Tyler R. Tichelaar spoke with computer training and accounting expert Edna Washington of Washington Consultants, LLC.  We previously recorded Edna at the 2008 Motown Writer’s Conference but response was so great that we invited her on for a full 40 minutes of Q&A about business records, taxes, and structuring your company. Edna Washington is a workshop presenter and has over 15 years accounting and computer experience. We grilled her on a variety of common startup questions incuding: Do I want to be a proprietor or a corporation? How do I setup my business so it is properly recognized? How can I amortize a large book printing over several years? Do I need QuickBooks to manage by business? What are 1099s and when do I give or receive them? How can I draw money from the business? What is the “home office” expense and can I claim it? What types of deductions are commonly missed by authors?

Edna is the owner of Washington Consultants, LLC in Detroit, Michigan. She attended University of Missouri at St. Louis. Washington Consultants provides accounting and computer services to small businesses. They also offer computer skills training for youth and adults. Mrs. Washington also volunteers with youth organizations to help young people succeed in life. She believes in giving back to her community. She believes that our youth just need to be encouraged and shown that there is a world to be conquered

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On April 8th, 2009 Irene Watson and Victor R. Volkman spoke with author and publishing expert Lissa Warren on how to get your book into the sweet spot on those tables in the front of the bookstore. Lissa Warren has worked at several Boston publishing houses including David R. Godine, Houghton Mifflin, and Perseus Publishing, and is currently Vice President, Senior Director of Publicity and Acquiring Editor at Da Capo Press, a member of the Perseus Books Group. Specifically, we were seeking answers to the following questions: Who chooses which books go on a store’s front table? What can authors do to help get their books on the front table at a chain bookstore? What are some of the different kinds of table space available at a chain bookstore? What can authors do to help get their books on a front table at an independent bookstore? What kind of media is likely to make a bookstore sit up and take notice? Does it help if you stop by bookstores and autograph copies? What about readings in bookstores—do you get better table space if you do them

The author of The Savvy Author’s Guide to Book Publicity, she has spoken about publishing for the Virginia Festival of the Book, Lesley University , Publishers Marketing Association, the American Society of Journalists and Authors, Publishers Association of the South, BookBuilders of Boston, ForeWord magazine, Grub Street, the New Hampshire Writers’ Project, and the Adirondack Writer’s Conference, among others. Since 2003 she has been an Adjunct Professor at Emerson College —in their Writing, Literature, and Publishing program—and she also teaches in Boston University ‘s publishing certificate program. She serves on the advisory board to the MFA writing program at Southern New Hampshire University.Ms. Warren holds a B.S. in English Education from Miami University and an M.F.A. in Creative Writing from Bennington College . Her poetry has appeared in Quarterly West, Oxford Magazine, Black Warrior Re view, and Verse, and she’s a poetry editor for the literary magazine Post Road .

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1.       What is the Amazon Kindle? 

The Amazon Kindle ebook reader was released on November 21st, 2007, just a few days shy of Black Friday. The first production run was sold out in 5.5 hours after the announcement according to CEO Jeff Bezos. Shortly thereafter, it could be found on eBay for $100 over list price.

The first generation Kindle was ridiculed by computer the industry wags branding it with various epithets from ugly  to zany  to “a bit sad” . That hasn’t discouraged consumers, who have been wanting something like this for a decade or more: an eBook reader that made sense. They’ve been voting with their pocketbooks to the tune of 6% of Amazon total book revenues . The Kindle can deliver your blogs and newspapers to you without ever leaving the comfort of your own bed—not even your dog can do that for you.

Since its release at a hefty retail price of $399, they’ve since come down about 10% to $359 and this price held even through the introduction of the revamped “Amazon Kindle 2”.

2.       How many Kindles are out there? 

There are not publically released figures but analysts say based on similar electronic products, they would have had to have manufactured 50,000 units of Kindle version 1 to get that pricepoint.

3.       How many books are really available on the Kindle?

The Kindle launched with 90,000 titles and by all accounts has accelerated to a growth rate of 10,000 titles per month. As of June 2008, there were 130,000 titles online. The most recent report puts total book titles at 240,000. Now, to put that into perspective, the current output of the book industry is roughly that many titles per year and by contrast the Library of Congress receives 500,000 items per year and has 32 million books in its collection.

4.       Can self-publishers and small presses really compete on the Kindle platform?

Now I’m going to say something really controversial: the Kindle has leveled the playing field for self-published authors and small presses in a way that has not been since the introduction of the Internet itself. There is no fee for authors to get their books up on Kindle; once they are on Kindle they look just the “same” as all other books by any of hundreds of other publishers. Yes there are some apocryphal success stories of people selling 20,000 copies on Kindle, but the average Kindle title probably moves a hundred copies of itself per year. It’s a revenue stream that’s only going to grow. Also, consider that Kindle users can download a free preview of your book. That itself could result in a sale.

You can get onboard yourself as an author through their do-it-yourself site, or you can get an experienced team to optimize the reading experience for you, as is offered by Reader Views

5.       So I can just do my Kindle conversion today, right?

Not so fast… If you are not a self-published author and your book was published in the last five years, the odds are extremely high that you don’t own your own rights to produce an electronic book.  You need to read your contract very carefully to make sure you haven’t ceded those rights directly or indirectly.  For example, by an all-inclusive clause saying “all formats the publisher wishes to utilize”.  Like every other type of product, development costs time and therefore money.  Less time than putting out a book, but still someone has to be paid to do the work for the publisher.

6.       What kind of conversions issues are there for people doing the work?

It turns out that some input file formats are much better than others.  Sadly PDF is the worst of the lot. Unfortunately, most authors have gone past the Word file stage and have made corrections in the PDF stage of production so their Word documents are no longer the best representation of the text.  This is a problem I see over and over.  Word documents are actually relatively painless. PDFs however, generate a whole set of problems including UNICODE characters—a single one will prevent the whole conversion, poor paragraph determination algorithm—resulting in chopped up paragraphs, inability to handle “smart quotes”, often problems with headings misformatted and stray page numbers landing inside the body text. A PDF conversion can take between 2 and 8 hours, even with custom-written tools. And if you fail to do it right, Amazon will refund customers purchases and eve
n kick your title off the site.  I provide a lot of tips and tricks in my new book Authors Access: 30 Success Secrets for Authors and Publishers.

7.       What’s New with the Kindle 2 product “refresh”? 

The Kindle 2 rebuffs a lot of the criticisms leveled at the first-generation kindle.  It is definitely NOT klunky, weighing in at 10 ounces and 1/3^rd of an inch thick.  You can’t stuff it in a purse, but it can fit in any type of attaché case.  The first version already had a long battery life but Kindle 2 extends that to 4 days of reading on a single charge.  They can do that because it uses not LCD technology but “electronic ink” which stays put on a single powerup so that battery is pretty much only consumed during page flipping. Of course it still uses the Whispernet, a leased use of so-called 3G cellular networks which gives you access to content with no monthly fees.  It’s now a full fledged MP3 player but that’s not saying much given that you can buy a thumbdrive which is also an MP3 player for about 20 bucks.

8.       What is the big deal about the new text-to-speech feature that reads books to you?

I’ll read to you from an article in an issue this week from the Guardian (and I hope they don’t sue me for doing so).

The Authors Guild has objected to the Kindle 2′s text-to-speech feature and Amazon — which also sells audiobooks — is giving publishers the ability to stop it working.  Following objections from the Authors Guild in the US, Amazon has caved on the text-to-speech features of the new Kindle 2 ebook reader. It will now enable publishers and authors to disable the text-to-speech (TTS) function if they want.

There shouldn’t be anything controversial about TTS: it’s been available on personal computers since the 1970s. It’s important to people who have impaired or no vision, but little used by anyone else. However, the Authors Guild argues that the audio rights for a book are different from the reading rights, even if the audio is provided by a software robot.

In “The Kindle Swindle?” an editorial  in The New York Times, Roy Blount Jr, president of the Authors Guild, argues that “Kindle 2 is not paying anyone for audio rights.” He says:

True, you can already get software that will read aloud whatever is on your computer. But Kindle 2 is being sold specifically as a new, improved, multimedia version of books — every title is an e-book and an audio book rolled into one. And whereas e-books have yet to win mainstream enthusiasm, audio books are a billion-dollar market, and growing. Audio rights are not generally packaged with e-book rights. They are more valuable than e-book rights. Income from audio books helps not inconsiderably to keep authors, and publishers, afloat.

You may be thinking that no automated read-aloud function can compete with the dulcet resonance of Jim Dale reading “Harry Potter” or of authors, ahem, reading themselves. But the voices of Kindle 2 are quite listenable.

9.       How much are Kindle books and how much do I make as the author or publisher?

Most of the books are available at $9.99 although there are always promotional items marked down further to as little as $2.99.  It still seems like a lot of money for me for a book that is locked up in a box.  Amazon rakes off 65% of the price so with a $9.99 book that means the publisher gets $3.50 and the author maybe some percentage of that, such as 50 cents or a dollar if they are very lucky.  Everybody knows that ebooks cost “nothing” to produce so everyone has their hand out to take the profits.  Ebookstores never take less than 50% of the list price for themselves.

10.   So Kindle 2 should take over the world right?

Not so fast… Kindle 2 is maybe a little bit late to the party and still has two strikes against it. First off, it rides against the notion of digital convergence.  This is not some pie-in-the-sky concept but a real trend where content, for example movies, can be shown on your computer, your phone, and your TV seamlessly.  Furthermore, new TVs are coming out with internet connections built-in for Netflix and Amazon video downloads. Kindle is a fully closed platform in that if you buy a “kindle book” from Amazon it will never never ever be readable on your laptop, your TV, or your phone.  That means you gotta lug it with you wherever you go.

Second point:  Kindle is going to be under a lot of pressure from the new generation Netbooks. These are tiny computers with a 9 or 10 inch screen that weigh 2 pounds and run Windows XP just like a full-size computer, have wireless internet, webcams, audio, a gigabyte of memory, everything you need.  And they cost less than the Kindle 2.  I just bought one for my wife on sale at Buy.com for under $300.  If you can surf the whole world wide web, do you really want an ebook reader?  This is where Amazon has shot themselves in the foot by not allowing online reading of kindle books.  Its anti-convergence, not pro-convergence.

Hello and welcome to a special edition of Authors Access Live. This program was recorded in front of a live audience on November 9th 2008 at the 5th Annual Essence of Motown Literary Jam Weekend at the Southern Fires Restaurant in Detroit Michigan. This event was sponsored by the  the Motown Writers Network.  This talk features Edna Washington of Washington Consultants with over 15 years accounting and computer experience. Washington Consultants provides accounting and computer services to small businesses. Computer skills training for youth and adults is also a service offered by Washington Consultants.

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On Thursday, April 17th, 2008 Irene Watson and Victor R. Volkman spoke with Toby Heidel, futurist with Red Planet Audiobooks in Austin, TX. Toby shared with us the changing nature of the audiobook industry and how small publishers and self-published authors can take advantage of this burgeoning new market without spending a fortune. Trends such as online delivery and market fragmentation can actually work in your favor by creating a level playing field. Red Planet produces and distributes audiobooks for independent authors and small publishers.

Toby is in charge of long range planning for the company, implementing new technologies and responding to developing trends in the audiobook industry. In addition to his work with Red Planet, Toby has a solid background in spoken word entertainment as the long-time Executive Director for the Violet Crown Radio Players, a radio drama re-creation troupe based in Austin, Texas.

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Hello and welcome to a special edition of Authors Access where Authors get published and published authors get successful. I’m your host Victor Volkman, from Loving Healing Press in Ann Arbor Michigan.  Tonight we will be listening to my lecture “Amazon Adventures” delivered live at the Motown Writers Conference on November 9th, 2007. In this lecture, I’ll be covering a variety of Amazon programs and strategies including: Amazon Advantage, Amazon Associates, Amazon Connect, Amazon Marketplace, Amazon Mechanical Turk.  I’ll also highlight how to make Advanced Tactics work for you such as Listmania!, Search-inside-the-book, social networking, video reviews, and much more.

Be sure to download the accompanying PowerPoint presentation that goes with this lecture  so you can read along as we cover the material (PDF version).  This lecture was recorded about two weeks before the release of the Amazon Kindle eBook reader so we won’t be mentioning it.  However, we hope to have a show in early 2008 that highlights the strengths of this platform and how to parlay your Amazon experience with the Kindle reader.  Now sit back and listen to Amazon Adventures recorded in the Southern Fires restaraunt in Detroit Michigan.

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On Thursday, February 1st, 2007 at 8PM EDT we spoke with award-winning marketing expert Shel Horowitz of principledprofit.com.  He shared with us problems and solutions for working with bookstores, when to try non-bookstore markets, understanding competition, and how to use bookstore appearances to leverage publicity.  Shel also talked about how authors can get paid to market their own books and how even small, self-published authors can garner publicity.

Shel Horowitz is the author of seven books, his two most recent: Grassroots Marketing for Authors and Publishers and Principled Profit: Marketing That Puts People First. He is a copywriter and marketing/publishing consultant specializing in ethical, affordable, and effective approaches.  Mr. Horowitz is also the founder of the international Business Ethics Pledge

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