Ebook Membership

[Anke Wehner]

I think the competition with amazon and agency pricing would be arguments to look into a "renting" rather than "buying" model.

If thanks to the agency pricing you can't sell books for less than the "cover price", there is still a chance you could rent it for less, and, hopefully, charge prices that are low enough for more people to want to sign up.

Getting ebooks to read once for what comes to $1-2 might be attractive to people who would like to try new authors often, but neither buy a book at full price nor only read sample chapters; or people who only read a book once, anyway, rather than adding it to their collection to re-read over and over.

I'd also suggest you don't use someone who reads 15 books a month as basis for your calculations - consider that here on the forum reading 100 books in one year is considered a challenge.

[bucsie]

You know, there is such a site that offers unlimited downloads for $11.99/month. I don't know what their selection of books is, though. I don't know if it's legally set up or not either . But it shows on google on the first page if you search for download ebooks subscription.

[elcreative]

Oh, I thought that was a quarterly reading target...

Originally Posted by Anke Wehner

...I'd also suggest you don't use someone who reads 15 books a month as basis for your calculations - consider that here on the forum reading 100 books in one year is considered a challenge.

[CWatkinsNash]

Originally Posted by bucsie

You know, there is such a site that offers unlimited downloads for $11.99/month. I don't know what their selection of books is, though. I don't know if it's legally set up or not either . But it shows on google on the first page if you search for download ebooks subscription.

I found the site. Clicking on "subscribe" takes you to Paypal, and it sets up an autopay plan or a single payment, depending on which option you choose. I find it very interesting that they want your money before presenting any TOS or other legal stuff, which definitely makes them look shady at best. I couldn't find any sort of TOS anywhere else on the site either. I'm pretty sure they are not legit but I can't verify without giving them money, and that ain't happening.

[BookCat]

I know of another, definitely pirate site, which allows unlimited download for $10; I think the UK price is £10. I think it's such a cheek to charge for pirated books!

As to the business model. I'm not sure you've thought it through, just imagined what it could be if the would was as you'd like it to be for your plan to work.

Certainly, I wouldn't pay that much. I wouldn't pay at all, just wait for freebies or read public domain books.

[charmian]

I don't think you've really thought this plan through. I don't think a subscription model and permanent ownership of all the books you want really mix. Otherwise, why not just pay for one month, and download a thousand books? If it's a subscription model where you pay X dollars a month and receive Y number of books, that might work, depending on what books they are. However, this model already exists. Romance book publishers have subscription models like this, as does Baen.

[karenr_nz]

Hi Brad, I think your idea has potential, but as others have said, there are some very definite problems. There are two ways that I could see this idea working, and both of them would have to have major publishers on-board. You would need to have a good selection, with regular new releases.

The first is a subscription type model, as others have stated, perhaps with variable pricing - $6/month to download (and keep) one book, $10/month for two books etc, or for voracious readers, some annual subscription options of perhaps $60/year for 12 books, $100/year for 25 books etc.

The other model would be more of a library subscription. In this case a small fee (perhaps $5 per month or $50 per year) for effectively unlimited downloads, but the books would only be on loan for a limited period (perhaps one or two months).

Personally, I would happily pay for either kind of service (at the rates indicated) as long as I knew that the books I wanted to read would be available, and that comes back to the first point of ensuring that you have top publishers and authors as part of the scheme with a large number of books, including new releases. (Note that you could also tweak the pricing structure so that you have a certain rate for 'no new releases' and a higher rate for plans that include a certain number of new release downloads.)

[vrodbrad]

Okay everyone I understand the price issue, and most likely the price would be lower. I also did research on ebook selling. now this is just using the u.s population. With over 308 million, 8 percent own ereaders. 50 percent of them don't buy ebooks, 28 percent buy 1-2 ebooks per month, 8 percent buys 2-4 ebooks per month, 4 percent buys 4-10 per month, and 1 percent buys 10+ ebooks a month. So my target marketing group that I would want would be the 1 to 4 percent individuals. Also the idea of renting of ebooks I do not like for I believe if you paid for it you should be able to keep it, but possibly on the site their could be a section for renting, who knows. (but I still don't like the idea). Getting the publishers is the hardest thing, and yes we would want current books and be able to have all genre types of reading from a-z for not all just read one type. again thank you all for the input.

[Joykins]

Originally Posted by vrodbrad

Okay everyone I understand the price issue, and most likely the price would be lower. I also did research on ebook selling. now this is just using the u.s population. With over 308 million, 8 percent own ereaders. 50 percent of them don't buy ebooks, 28 percent buy 1-2 ebooks per month, 8 percent buys 2-4 ebooks per month, 4 percent buys 4-10 per month, and 1 percent buys 10+ ebooks a month. So my target marketing group that I would want would be the 1 to 4 percent individuals.

OK, I'm one of the 1-4% of individuals you are targeting. I read 100-500 books per year. So let me give you my opinion:

I would probably not pay $30 (or even $25) to buy 6 books a month.

Keep in mind, I can buy backlist e-books or bargain-priced books for about $4 (or less) each. This would actually be a raise in price for some of the books I buy.

I can borrow books (nook/Kindle borrowing, Overdrive library) for free. Also, I "buy" any promotional freebie that looks interesting, plus I can get my classics for free. So you're competing with freeware.

If I'm going to commit to buying 6 books a month at $5 each, sight unseen, I'm going to want to know that you are going to provide 6 books that I REALLY WANT TO BUY per month. I need to know that your selections are such that I would want to buy 6 books a month from your catalog.

Now, will that be 6 books a month, or some other number, or an unlimited download? If it is unlimited, I join maybe once a year or so and download everything in your catalog that sounds interesting--hundreds of books, no doubt. You'll never make money at that and the publishers would never allow it. So you need some kind of limitation.

Also the idea of renting of ebooks I do not like for I believe if you paid for it you should be able to keep it, but possibly on the site their could be a section for renting, who knows. (but I still don't like the idea). Getting the publishers is the hardest thing, and yes we would want current books and be able to have all genre types of reading from a-z for not all just read one type. again thank you all for the input.

As a voracious reader (and you are *targeting* voracious readers, remember?) for the most part I would much rather rent than buy. I know maybe YOU want to keep everything you read, but are you this kind of reader? Much of what I read, I read only once, so I would not pay a premium to buy. But to get a good rental model going that is superior to Overdrive and nook/kindle borrowing, I think a model similar to Netflix would be what *I* would want:

1) a limited number of "check outs" AT A TIME (like, between 1 and 4). (keeps abuse from occurring)-- few people read more than 3 or 4 books at a time, anyway.

2) an unlimited borrowing period (I can keep the book until I finish it, even if it's months, but I can't get a new one until I check the old one back in--I'm pretty sure this is how Netflix makes its $, by the way, the people who hold onto a movie for months); of course, all borrowing periods expire when the membership ends.

3) No or minimal waiting lists. There are 47 people waiting to read Bill Bryson's _At Home_ at my library, for example. I want the book when I am in the mood to read it, but I don't want the guilt of blocking 47 other people from accessing it while I wait to read it because I already am reading something else....

4) An option to buy. If the book is really that wonderful, I'd buy it with a click from you--but only if you're underselling other booksellers like Sony or B&N or Amazon. (I know Agency pricing, blah blah).

The publishers aren't going to let you do this DRM-free, and you'll need some rights management software to manage the loans, probably more than one if you plan on lending out books for Kindle.

The reason I prefer rental to purchase? Let's assume I could pay $30/month and get 6 books to keep, or $30/month and check out 4 books AT A TIME. Easy, I get to read 6 books for $30 under the first model, which is a reasonable price, no doubt--but I read 40 or so books a month, let's say I get 15 of them from your rental service, that is 15 books to read for $30, a much better bargain. Again, remember I don't care about keeping most of these books, if I like one enough to think I'll read it again and again, I'll buy it in addition to the $30 I spend on rental.

[frquixote]

Originally Posted by Joykins

If I'm going to commit to buying 6 books a month at $5 each, sight unseen, I'm going to want to know that you are going to provide 6 books that I REALLY WANT TO BUY per month. I need to know that your selections are such that I would want to buy 6 books a month from your catalog.

Joykins is pointing to the fundamental problem of most such clubs, even in the DTB world. I used to belong to the History Book Club several decades ago and found that they seldom carried anything I was interested in beyond the six for one penny deal they used as the enticement. Made it tough to find three books to fulfill the minimum. Fortunately, I didn't have to pay a fixed amount each month or I REALLY would have been irritated by the poor selection.

[Joykins]

True! I remember that from my History Book Club membership

Also there is lower risk from a dud from a rental model. I check out a book, find it is boring or sucky--I check it back in and get something else with minimal waste of time. I'm not stuck with the dud or paying for the dud. One of the real benefits to borrowing books is that you can take a risk on a new-to-you author in the hope that you'll hit on something you really like, without taking a $9.99 drubbing.

[Anke Wehner]

Originally Posted by vrodbrad

Also the idea of renting of ebooks I do not like for I believe if you paid for it you should be able to keep it.

People or companies who rent out appartments or cars would disagree.

[queentess]

Originally Posted by Anke Wehner

People or companies who rent out appartments or cars would disagree.

If I could rent a book for a fraction of the price of a new book, I might consider it... paying the same as a paperbook and not getting it keep it makes me sad.

Also, the renting model works best for items that are priced so high that it takes a significant percentage of income to purchase it. If I can easily buy something outright, I don't want to rent it, I want to own it. Mine mine mine mine

[Anke Wehner]

Yes, if we're being serious, video rental would be a better comparison.
Of local libraries that lend out paper books if you pay their annual fee (€10-15, around here)

[Bro Pete]

It sounds like you have a good project. With all the questions and suggestions, you should have a refined idea of what it takes to propose a business model.