Quote:
Originally Posted by Daithi
Baen has a great business model. They have embraced ebooks in a big way, but they also stay in business by cutting out the middleman and selling direct to the consumer, so they're getting both the publishers cut and the retailers cut.
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Baen hasn't cut out the middleman except for ebooks, and not even then. You can buy Baen ebooks at places other than Baen. What Baen has done is convince a core group of readers to buy directly from Baen, thereby maximizing Baen's take. But I doubt Baen's core group is sufficiently large for Baen to shut off access to its products via other channels. It would be nice to see a breakdown of sales and sales channels from Baen before concluding that Baen's model is a great business model.
I also find it interesting that Baen's model is touted as
the model to follow for pricing but without mentioning that Baen's pricing is only reasonable for ebooks. Once you decide to buy a pbook, buying from Baen is significantly higher than from other channels.