Traditional Publishing vs. Cooperative Publishing

Royalties traditionally range from a low of 5% up to a high of 15% and are often paid on the wholesale price of a book—not the retail price. The wholesale pricing of a book is, quite simply, the listed retail price less a 40% discount (and the discount could be even 50% to 55% or more; it is whatever your publisher decides). In other words, if your book sells for $10, the royalty may be based on the wholesale price and calculated as $6 (for a 40% discount). Consequently, the royalty for a $10 book would be $.60 per book or less.

And there is still another catch. Any returns and remainders sent from bookstores back to the publisher can be deducted from the author’s royalties. (This will depends on your contract.)  And here is another kicker: royalties are generally paid only once or twice a year by most publishers and, quite often, they are mailed late. In other words, your first royalty check won’t be mailed for six months or more and to pour salt into the wound: some publishers—primarily academic presses—don’t pay any royalties until 500 or 1,000 copies are sold. And guess what the average sales are for the authors of these publishers?

Traditional publishers will typically carry your title in their quarterly catalogue; but, as the author, you are still expected to market—and to publicize—your own book . . . and at your own travel expense! Furthermore, unless a title is a real gem, it may not remain on chain bookshelves for very long, so you are back to using your own selling ingenuity to move your book.  

Also, aside from a few complimentary copies (usually ten), you must pay the same price (usually the 40% discount) as other booksellers to obtain your own books for resale. Yes, traditional and academic presses profit from sales of books to their own authors. In reality, authors can make more money by buying their own book at discount and re-selling than from the royalties they will receive.

The traditional publisher has the right to change the name of your book, rework your text, and retain the copyright. Your book becomes their property as long as they want to keep it in print and—for all your hard work—pennies on the dollar in royalties are paid to you for the privilege of letting them have your manuscript.  

We urge you to ask your publisher: Who owns the copyright?  How does the royalty payment plan work?  And What is the average number of copies being sold for the majority of their authors?  In other words, do plenty of research and ask questions to find out exactly what you are getting for signing away the rights to your work.  

Comparison of Profits for Traditional vs. Cooperative Publishing
Working with a small cooperative publisher or even doing a self-published work can be much more profitable than agreeing to a traditional publishing contract. This comparison is and example based on an assisted publishing plan for a recent first-time author and is for a run of 1,000 copies for a standard 6 x 9 paperback priced at $10.00 retail.

	Traditional publisher sells 1,000 copies at $6.00 (this is the wholesale price for a 40% discount). Total of sales would be $6,000. (This does not include any returns or books sold for less than the standard wholesale price which would be an additional deduction). First royalty payment will be 6 to 9 months later.
	The author’s investment is $0 and the royalty is 10% or only $600 profit.
	Cooperative publisher prints 1,000 copies for the book at a cost of $4.00 per copy. The author sells 500 at the retail price and 500 wholesale (40% discount). Income is immediate upon the retail sale of the book.
	The author’s investment is $4,000. Assuming that sales are split: $5,000 retail (500 x $10) and $3,000 wholesale (500 x $6); the total would equal $8,000 less the investment of $4,000 for a $4,000 profit.
	However, if all the books were sold at the retail price (which some of our authors do); then, the profit would be $6,000 ($10,000 in sales less $4,000 investment).

This example is typical for our customers and is drawn from our own experiences with academic, traditional, and non-traditional publishing houses. 

The unknown factor is the time frame in which all your books will sell. Regardless of who publishes your work, it takes adequate time to sell the entire run. However, if an author chooses to invest in their own work and is willing to market the product, they stand to profit handsomely while retaining the copyright, creative control, and larger profits.   

When to use a Traditional Publisher
One of the myths among unpublished writers is that if a book is published by a non-traditional, contract, cooperative, or self-publishing house, it won’t be reprinted by a traditional publisher. That is not true based on our own experiences placing books with larger presses. If you are able to sell your title, another publisher may be interested. However, you shouldn’t turn the book loose to someone else until you have exhausted your own limited market.  

For example, for some of our titles, we felt that our marketing capacity had been reached, so we signed contracts with traditional publishers—many of these titles can be seen on our “Books” link. (And why not? We held the title for several years and made a good profit.)

Also, if you have a manuscript that is quite large and quite lengthy, the costs might be better shifted to a larger press. Authors will then buy their title at standard discounts from the publisher. On the other hand, we do have customers who  produce books with over 600 pages in length; and, they choose to maintain creative control and profits by using our press.  At any rate, we will work with our authors on this and any other aspect of placement,  if so desired.