The Shack Gets Sued

Sad news from the LA Times that the author and publishers of The Shack are now in court fighting over the royalty earnings.

Read the entire article here.

Then weep.

Then pray that cooler heads prevail and that it can somehow be kept out of the court system.

The key element to the story, from my agent’s perspective, is that there was not a solid contract in place from the beginning. It started with a hand shake. Then when a big publisher (FaithWords, a division of Hachette) wanted to get involved in distribution a contract was put in place. But the agreement between the publisher, Windblown Media, and the author has terminology that remains unclear. Signing a contract that pays based on net profits can be trouble unless “profit” is defined very clearly. Most book contracts are based either on retail price or on net receipts. Big difference between receipts and profits. Young claims that Windblown has under-reported the profits.

Windblown Media counter-sued and claims that their owners Wayne Jacobsen and Brad Cummings should be named as co-authors of the book because of the work they did back in the beginning of the project.

So Hachette, in a defensive move, had to file their own lawsuit against Windblown Media and William P. Young. Why? Because they have one million dollars they owe to these fellows, but if they send a check, and it is later determined by the other lawsuits that the money was paid incorrectly, then Hachette could be sued. So they very wisely put the money in a judicial escrow account where it will remain until Windblown and Young settle their dispute. In other words, from now on…no one gets paid…until the things are settled by the courts.

What a mess.

Clearly some huge misunderstandings have occurred. Dig even deeper into the article and note that “reserves against returns” is misunderstood. In addition there is dispute over reduced royalties paid on books sold at a very high discount. Both are well documented industry practices and are usually in a contract with clear definitions.

This illustrates why writers need literary agents to help with their intellectual property concerns. This week I have helped three clients unravel their royalty statements. Each case had different concerns and because of what I do I could understand and explain the situation. In one case we are writing a note to the publisher asking for clarification. In another case I think the royalty rate for e-books does not match the contractual rate and thus a note has been sent asking for clarification.

I have seen situations among writing friends disintegrate over editorial and publishing issues. That is why I encourage anyone who is wanting to collaborate on a project that they get a solid collaboration agreement in place as early as possible.

Don’t just shake hands and hope for honorable behavior. We would like to hope for honor and honesty but we are all fallen creatures in desperate need of redemption.

At least consider using a conciliation organization like Peacemakers (click here for the first steps in dispute resolution) before taking anyone to court.

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ICRS Observations 2010

Some have asked for my thoughts on this past week’s International Christian Retail Show (ICRS) in St. Louis. I’m glad to answer.

This was my 29th consecutive booksellers convention. At its height there were approximately 14,000 in attendance, many years ago. That is no longer the case. Statistics released indicate total attendance was 6,812. Registered pick-ups in attendance was  4,747 (flat compared to 2009); professional attendance was 1,675 (up 4.5% over last year); and international attendance came in at 390 (up 4% over 2009). I’m not sure if they combine exhibitors and retailers in that first number of if the exhibitors (publishers, etc.) are included in the second number. As an agent we are considered “professional” attendees.

Apparently the national average retail trade show attendance is down 16%, so the convention is feeling pretty good about this year’s showing.

I’ll admit to being skeptical about St. Louis as the locale. In my nearly 30 years of attendance it had never been in that city. I was pleasantly surprised. I was fortunate to be staying at the hotel directly across the street from the convention hall which made moving from one thing to another very easy. I was also impressed by the number of fine restaurants in the area, most within walking distance. I had the fun to host two author-related dinners and both restaurants were excellent.

Since I don’t go to the convention with tourism in mind I have no idea what I might have missed, other than traveling to top of that Arch. However I spoke to the husband and son of an author who thoroughly enjoyed the area and filled three days with a wide variety of activities.

For me the event began with the Christy Award reception on Saturday night. Our agency had three authors who were finalists. None received the top award, but being recognized as a finalist is an honor in and of itself. I love the Christys and what it represents. If you ever have someone criticize Christian fiction as being vapid or poorly written, challenge their assumptions by suggesting they read the finalists. I predict they will be chagrined to have made their accusations after having a chance to read some of the incredible writers represented among the award finalists.

The rest of the week was a series of scheduled meetings and “hallway” or “aisle-way” conversations. I had thirty scheduled appointments and probably ended up with over 50 significant conversations when the time was done. Even had the chance to discuss deal points on a new contract that surfaced during the convention (that almost never happens).

I was also privileged to hear a hour and a half presentation by Hachette Digital. They are working very hard to maximize the opportunities created by the digital revolution. I came away feeling like some very smart people are working hard on doing smart things in this world. They were open to questions and suggestions. Very impressive. Thank you Rolf, for the invitation.

Tuesday was an odd day in that every meeting was in the hotel until late afternoon. I did not actually hit the convention floor until 4:00. That was something new for me since, in the past, most meetings took place on the convention floor or in Publisher suites. This was also the first year that not a single appointment took place in a publisher’s suite!

Because the convention itself was smaller in scale it fit in the hall very well. There were always people visibly roaming the aisles all the way until the closing announcement on Wednesday afternoon. It “felt” busier because of that.

The International rights section was a hive of activity. Goodness. There was never a dull moment in that space. It is incredible to think of the marvelous activity of great Christian literature and its impact around the globe.

I’ve had some disagreement with a colleague or two over whether the ICRS convention is a dinosaur that will soon disappear. I tend to remain positive about its place in the industry and truly hope it does not go away. There is simply no other single event where so many industry-related people gather in one place. I can think of a half dozen conversations that would not have happened if were not for this event.

For publishers it has become an Author-Relations event, not much of a sales opportunity. The stores have already placed their orders for forthcoming books and music. And while there are fewer Christian stores, many major big box retail buyers were in attendance. Therefore while actual orders may not be placed at the show, the seeds for new sales were being planted.

Since both Chi Libris (fiction) and AWSA (women speakers and authors) organizations have their retreat in the days before the convention, many authors are there. I believe we had at least 12 or 13 of our clients who were there for at least part of the event.

The gift section was humming the entire show. And that will always be. Many gifts are such that they have to be physically held or seen in person before knowing if they are a product the retailer can sell. If ICRS goes away the retailers will have to rely on the general market Gift Shows which would not have as many vendors and their selection opportunities would decline.

All the usual suspects of kitchy art, gifts, and toys were there. Nothing made me exclaim, “you’ve got to be kidding.” So that either means I’ve become immune after all these years or there were simply fewer products to see. (Years ago, my all-time worst observation was a clown making balloon art. He was methodically putting together a six foot high brown crucifix with a flesh colored Jesus on it…all made out of long thin “clown” balloons. From the back of the adoring crowd I muttered a little too loudly, “My kingdom for a pin.” And then walked away shaking my head.) In general I don’t mind most of that material since I sold a lot of it during my days as a Christian retailer. For many people the items are a real blessing in their church or home. But that balloon art exhibition was over my line.

I enjoyed taking pictures of client’s book covers and displays and emailing those to them. A lot of fun for those who couldn’t attend.

Bottom line? Publishing is alive and well. Publishers are still looking for great content and great authors. The Christian retail business is small, but those who survived the “crash” are still working hard and serving their communities. It is nice to see there are those still dedicated to the call of being booksellers.

I can’t wait to get to work each day to find out what’s new in this terrible, horrible, wonderful, exciting, frustrating, exhilarating business.

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The Ultimate Sound Bite

Can you boil the essence of your novel or non-fiction book idea into twenty-five words or less?

This is one of the keys to creating a marketing hook that makes your idea sellable in today’s crowded market.

You have less than a minute to make that hook work.

It is also called creating the “elevator pitch” or the “Hollywood pitch.” The goal is get the marketing department to exclaim, “We can sell that without any problem!” And ultimately to get a consumer to say, “I want that” or “I need that” or “I know someone who should have that.”

I recently came across a series of delightful web sites that takes this exercise to hilarious conclusions. Click through these links below and pick your favorite book, kids book, science fiction story, or movie and enjoy.

Let me know which one is your favorite. Then see if you can do the same, albeit in a more serious way, with your own idea. Then go pitch it to an agent or an editor!

A Book-A- Minute Classics

A Book-A-Minute Bed Time Stories

A Book-A-Minute Science Fiction/Fantasy

A Movie-A-Minute

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In Memory of John Wooden

Last night the great basketball coach John Wooden passed away at the age of ninety-nine. As you can see from the photo to the left I had the privilege of attending one of his basketball camps during the Summer of 1974.

It was a John Wooden and Bill Sharman (then coach of the LA Lakers) camp in Honolulu. We lived and breathed basketball 24/7 during that week. We drilled during the day, sat in classes, and scrimmaged in the afternoons and evenings. It was heaven for an aspiring athlete. (For the rest of the world that week was notable because President Nixon resigned that Thursday August 8, 1974.)

During one drill Coach Wooden pointed at me and said, “Come here young man and show me how you rebound the ball.” I sheepishly came out in front the other players and for a couple minutes Coach Wooden schooled me on how to box out. No matter what I did, spinning, pushing, hip-checking, and jumping, he always snagged the rebound. I couldn’t believe this gray haired “old man” who was at least five inches shorter than me could do that. (Coach Wooden would have been 63 years old at the time.) It was only later that I found out that he was in the Hall of Fame…as a player (inducted in 1960)! No wonder he taught this skinny kid a lesson!

When that exercise was over he patted me on the back and said, “Good work, son.” He didn’t shame me, he didn’t show me up. He taught me and everyone else on the court the power of good footwork, dogged determination, and that you didn’t have to jump high to get every rebound. The memory of that is so strong I can still feel his elbows, hips, and other bones grinding into my thighs and ribs as I tried to get around him.

Later that week they had us practice free throws until we were sick of them. Little did I know that at one time in his playing days, Coach Wooden made 134 consecutive free throws in a 46 game period. And the other instructor was Bill Sharman  who led the NBA in free throw percentage seven times! (Bill Sharman still holds the record for consecutive free throws in the playoffs with 56.) Now that I look back I’m amazed at the privilege I had to receive instruction from these great coaches.

But even greater is the legacy of character and faith that he instilled in everyone. I’ve read his books and interviews, and heard numerous comments about him from former players. A couple simple sentences illustrate some of his wisdom. In last night’s Associated Press article they wrote: “Asked in a 2008 interview the secret to his long life, Wooden replied: ‘Not being afraid of death and having peace within yourself. All of life is peaks and valleys. Don’t let the peaks get too high and the valleys too low.’

Asked what he would like God to say when he arrived at the pearly gates, Wooden replied, ‘Well done.’”

I suspect that is exactly what he heard last night.

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