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Originally Posted by DiapDealer
Sure they could have. No huge margins (the new ones on ebooks that they're so proud of) ... nothing for Amazon to take. Plus fat, sassy, and productive authors attracting other authors looking to get fat and sassy. Foresight wins the war. Not instant gratification.
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Some authors have loyalty to a publisher, other authors jump from publisher to publisher going after who is going to give them the most money. It's not really all that different than consumers. Some have a lot of brand loyalty, others go with whatever is cheapest at that particular time and place. A publisher is never going to be able to compete with Amazon on pure price. Some authors well understand what a publisher brings to the game, others don't.
Like the weight loss commercials one sees on TV, for each successful story of an author making lots of money via Amazon, there are hundreds of authors who are not nearly as successful. Writing a quality book is only half the battle when it comes to being a successful author. You also have to get noticed by the book buying public. That's a lot harder. To a great extent, Amazon is like a vanity press.