Smashwords Moves to Agency Model

[lilac_jive]

Originally Posted by NightBird

No there will not be coupons. The statement made about coupons meant that the authors or publishers could offer coupons if they wanted to; doesn't mean that they will and it would be an individual thing. But if say Kobo offers a 20% off coupon you will now, in addition to not being able to apply that coupon to the big 5 agency books, also not be able to apply it to any Smashword books.

Granted Smashword prices are generally cheaper, and it's fine to say your books will always be $2.99 and that's a reasonable amount. What you are missing is the psychological effect of a discount or coupon on boosting immediate sales. If I have a coupon or something is on sale I am more likely to grab that book now that is $2.99 on sale, since that is a limited time offer. If I have a huge TBR read pile I don't really need to buy now the book that is always $2.99...

But there will be coupons. Provided by the authors for use on Smashwords. Honestly, how many of you use a kobo 20% off coupon to buy a smashwords book? You save it for something expensive. The more effective coupons for smashwords books are the ones direct from the authors, and they will still be available.

[thrawn_aj]

@lilac_jive

Exactly. Enterprising self-published authors know how important Smashwords coupons are. I see them giving out codes all the time.

@NightBird

I take back the thing about the thread title. Apparently, I had the wrong idea of what the Agency model actually was. The most (indeed, the only) annoying part of the model (to me and to a lot of other readers I bet) is the lack of discounts and I took that to be a necessary part of the Agency model (I guess it's not).

[NightBird]

But there will be coupons. Provided by the authors for use on Smashwords. Honestly, how many of you use a kobo 20% off coupon to buy a smashwords book? You save it for something expensive. The more effective coupons for smashwords books are the ones direct from the authors, and they will still be available.

Wow - you have no way of knowing any of that. Besides, when people are asking about coupons they are talking about general coupons that apply to all books on a site. And no, I don't save the coupons for expensive books, unless they are 50% off are something. I don't buy expensive books, period.

it is not agency pricing

Yes, it is agency pricing. The agency part refers to telling the retailer how much they can sell something for. It doesn't matter if it comes from the author or the publisher. Better solution? Wholesale model: You deal with the retailer as to how much you will receive for each book sold - a set price or percentage of the book - then they are free to sell it for whatever they want and you will still get the same price.

No problem, thrawn-aj!

[lilac_jive]

Originally Posted by NightBird

Wow - you have no way of knowing any of that. Besides, when people are asking about coupons they are talking about general coupons that apply to all books on a site. And no, I don't save the coupons for expensive books, unless they are 50% off are something. I don't buy expensive books, period.

But I do. He doesn't mention on the blog that smashwords coupons are no longer valid, and you can still enter coupon codes on the site, post this change. I think most people on here know that I'm talking about the coupons on smashwords, but if they don't my apologies.

So you use generic coupons to buy books from smashwords on other sites like Sony or Kobo?

[NightBird]

No, not on other sites. As I said before, if Kobo gives us a coupon it is good for any book on that site with the exception of the agency books (or any other exception they dream up lol). Or say if Fictionwise gives us a 50% off coupon it is good for any book on that site (they did not contract for any of the agency books).

So before if I had a $2.00 off coupon from Kobo I could buy a Smashwords book for $1.99 and the book would be free, or a $2.99 book that would only cost $1.00, etc.

[taming]

..and that would apparently trigger a response from Amazon--not such a good thing from the author's point of view. If you go on the Kobobooks site, you will see a number of Smashwords books for free. Authors will set the price--that's ok with me.

[HistoryWes]

You may still use coupons from authors on Smashwords.

Um, see below.

[Fbone]

Originally Posted by HistoryWes

You may still use coupons from authors on Smashwords.

Um, see below.

Kobo will apply their new 30% off code to your book bringing it to $3.49.

[Fbone]

Originally Posted by khalleron

If you have a better solution, I'd like to hear it.

I don't know if you consider it better but ...

First, I'd like authors write the best darn book they can.

Second, I'd like publishers take the author's book and make it into the best darn work they ever published.

Third, I'd like retailers to take that published material and make it the bestselling book of the year.

This way each has a separate role that they do best. When these overlap quality and confidence suffers. The system falters and consumers become frustrated and unhappy.

[starrigger]

I'm an author, and I have three of my backlist books at Smashwords--soon to be four. I was quite pleased to receive the notice about the change in terms. For one thing--did no one even notice this?--the royalty rate to the author for Smashwords books sold at B&N and other stores increases from 40-something percent to 60%. Who doesn't like that?

As for the agency thing, what's the big deal? Yeah, these stores are acting as my agent in selling the books and taking a cut. Most of these books are only $2 or $3, the vast majority under $5. If people are going to get incensed about writers having a chance to set their own prices on books that are selling at the very bottom of the market, price-wise, then my feeling is that some people have way too much time on their hands.

Plus, of course, the thing about Amazon.

Mind you, most of the writers I've talked to really aren't getting all that many sales at SW, anyway, so that really puts the teapot in perspective. Mileage may vary, obviously.

[rhadin]

Originally Posted by khalleron

And it is not agency pricing, it's author pricing. The author sets the price. As I said before, Smashwords has no say in what price is set, except asking its partners to honor the authors' wishes.

Agency pricing means that the publisher sets the price. In the case of Smashwords, which is not a publisher but a distributor, the publisher is usually the author (there are some small publishers who distribute through Smashwords). Agency pricing and author pricing are the same thing called by a different name. The industry term for the pricing scheme is agency pricing.

That Smashwords has no say in the price set makes no difference as to what the scheme is properly called. Under the Smashwords system, the author generally assumes the role of the traditional publisher.

[rhadin]

As regards Smashwords discount coupons, I don't see how they can survive. The Amazon terms of enslavement say that if the book is offered anywhere at a lower price Amazon can match that price and if the price goes below $2.99, the royalty scheme changes.

If an author offers an ebook on Smashwords at the set price of $2.99 then offers a $1.00 off discount, the offered sale price is $1.99. Should not the author expect Amazon to match that $1.99 price without a coupon?

Isn't that why the 20% (or other discount) coupons offered by etailers like Kobo don't work on agency-priced ebooks? Isn't that why micropay at Fictionwise has disappeared?

It isn't clear to me why an author thinks he/she can set an ebook price at $2.99 and force every ebookseller except themselves to honor it without repercussions.

[vaughnmr]

Originally Posted by rhadin

The Amazon terms of enslavement

With your repeated Amazon bashing (I think you have done that in every single article you have written!!!) I am finding it harder to value your opinion.

[lilac_jive]

Originally Posted by rhadin

As regards Smashwords discount coupons, I don't see how they can survive. The Amazon terms of enslavement say that if the book is offered anywhere at a lower price Amazon can match that price and if the price goes below $2.99, the royalty scheme changes.

If an author offers an ebook on Smashwords at the set price of $2.99 then offers a $1.00 off discount, the offered sale price is $1.99. Should not the author expect Amazon to match that $1.99 price without a coupon?

Isn't that why the 20% (or other discount) coupons offered by etailers like Kobo don't work on agency-priced ebooks? Isn't that why micropay at Fictionwise has disappeared?

It isn't clear to me why an author thinks he/she can set an ebook price at $2.99 and force every ebookseller except themselves to honor it without repercussions.

That price matching doesn't come into effect if there's a coupon code (for smashwords).

The kobo (et al) coupons don't apply on agency books because they are simply not allowed to sell them for less.

Your last comment I don't understand at all.

I really, really don't understand why some people are freaking about this. To reiterate: Smashwords is DRM free, selling book in every format. They are supporting indie authors. Indie authors are making more on their royalties. The consumer can still buy the books at other stores. Coupons will still work on the smashwords site. The books often very affordable. I'm still sticking to the opinion that few people use generic coupons from other sites on smashwords books. And it only resembles agency pricing because the price is the same at all stores.

If you're stop supporting smashwords and many of the wonderful authors on there simply because of this, you need to rethink your priorities. But I get the feeling that those saying they aren't going to shop there anymore barely did to begin with, and probably get most of their books on the darknet.

/throws on flame suit

[rhadin]

Lilac,

I still buy from Smashwords but my question remains: If the author sells the ebook for less than the agency price by providing a discount coupon, don't the terms of Amazon's contract allow Amazon to lower the price to the coupon price? After all, the coupon price is the lowest price. I don't see where the author is permitted to discount his/her own books and not let Amazon match the price.