The Shack Gets Sued

Wednesday, July 14th, 2010

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.

Update: August 2, 2010

If you would like to read the actual court documents you can follow these links — the federal court complaint of Jacobsen and Cummings (the founders of Windblown Media) vs. Young, Young’s court motion to dismiss, and Windblown’s legal response.

Then enjoy the actual court document where Hachette is asking for court relief — this is where they state that there is nearly a million dollars in royalties waiting to be paid.

Tags: Bookselling, Contracts, Publishing, Writing
Posted in Publishing | 12 Comments »

ICRS Observations 2010

Friday, July 2nd, 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.

Tags: Bookselling, Christy Awards, convention, ICRS
Posted in ICRS | 10 Comments »

The Ultimate Sound Bite

Monday, June 21st, 2010

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

Tags: Pitching, Proposals, Rejection
Posted in Book Proposals, Publishing | 6 Comments »

What’s up with Christian Retail?

Monday, May 10th, 2010

Twice in the last 30 days I have been interviewed about the “state of the industry.” The journalist’s questions were insightful and thought I would share some of them with you. My answers have been expanded beyond the original ones since I have more space to work with here.

1. What do you believe to be the most important trend in Christian publishing and why?

This can be a complex question depending on which part of publishing being discussed. The obvious answer is the digital revolution. While e-book sales are still only a tiny percentage of the whole, the foundations being laid today will have long term implications.

In fiction I have been encouraged by the continued diversity in publisher’s acquisitions. While “romance” is king, a great story can still get a chance.

In non-fiction there has been a concerted push by publishers to acquire only those authors with a built-in audience of some sort. This is especially hard for the debut writers who have enormous talent and insight but have yet to construct a personal following. I even had one editor at a publishing house write me the following after I groused about a rejection letter that didn’t square with what I knew about that publisher:

“…it seems we no longer trust the old methods of reading the market, trying to get ahead of the curve on reader tastes and needs, and so forth. Now we have to prove a book’s success in advance, on paper, using mathematics.”

That is a stunning statement but in a sense is not news. If writers have not come to grips with the fact that publishing is a business, then now is the time to do so. Never forget that without a “bottom line” (i.e. profit) the publisher goes away (or they downsize) and everyone gets hurt.

Some will read that and despair. Others will shrug and say, “What’s new?” I think it is exciting that the industry is becoming that much more professional and the demands on excellence, quality, and “big ideas” will only help create better and more successful books.

2. When were you last in a Christian store and why?

In February, while traveling on business, I visited a local Christian store to observe their layout, featured products, and whether our client’s books were in stock. This particular store is part of a Christian retail chain with multiple locations.

The results were mixed. A front-of-store cardboard display was empty of product which was a good for store sales – meaning they had sold out, but signaled to me that their buyer was much too conservative (“stack ‘em high and watch ‘em fly” vs. “keep it low and they won’t go”). Since I did not own that item they missed out on selling one to me.

3. What can Christian stores do to better differentiate themselves from other channels selling Christian products?

Remember that I was in the Christian bookstore business for over a decade and our store received the National Store of the Year award from CBA (The Christian Booksellers Association) in 1989. So while my personal in-store experience is now nearly two decades out of date, I still understand many of the nuances of Christian retail.

My answer to the above question is “Personal service and community building.” The competition isn’t always the online channels. Sometimes it is simply those outlets that choose the top 10 titles to display. Thus product knowledge and personal relationships are the key to customer retention.

We had a Christian store in our area where our family shopped because of a long term friendship we had with its owner. Unfortunately, after 35 years it closed its doors after the city decided to build light rail in front of her location and made it nearly impossible to visit. We really don’t have an alternate store within a reasonable driving distance, which is disappointing in a city the size of Phoenix.

The CBA store is still a powerful customer for the Christian publishing community. But as a whole is losing “market share.” This market share has been shaved by online retailing, big box retailing that siphons off bestsellers, and a general malaise for the specialty retailer. The gift side of the CBA store is where most stores will find their survival because it does not have the competition from online stores. I hear many who are highly critical of the non-book section of the Christian store. Let’s stop that, okay? Let’s consider changing the view of the Christian bookstore to one of a Christian “supply” store or, if you must, a Christian “boutique.” Wherever there are vital and growing churches there are vital and growing Christian stores.

At the risk of sounding out of date I remember that the Christian stores I managed, back in the 80s, served nearly 500 church accounts. Once we counted the number of student curriculum packets we sold in one quarter and were startled to find that we sold 10,000 pieces of student material intended for Sunday School education for children. So while we had some plaques and jewelry and cards and posters and knick-knacks in the store we also had curriculum, at least 3,000 book titles, and hundreds of Bibles.

If you can, support your local Christian store, they serve a vital role as the Supply Sergeants of the Kingdom.

4. Do you own an e-book reader and if so what kind and what are you currently reading on it?

I have owned the Kindle since it was first released (currently using the Kindle 2). I last read a client’s manuscript on it while traveling (uploaded from my computer to the Kindle). In addition I also re-read Phil Vischer’s Me, Myself, and Bob: A True Story after hearing him speak on the topic at a recent conference.

I have resisted the lure of the iPad so far. I plan to wait for the second version to see if some of the bugs get worked out. Unfortunately the “swiping” motion on the screen gives me a bit of vertigo. I find that standing in the Apple Store playing with it gives me a slight headache. So I may never be able to use one comfortably.

Tags: Bookselling, Editors, Proposals, Publishing, Rejection, Writing
Posted in Publishing | 8 Comments »