Strategically Speaking: How Will E-books Impact Your Bottom Line?
It’s time to sit down and rethink traditional business models. Here are key factors to consider.
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4. Royalty Cost. Royalties may turn out to be the 800-pound gorilla in the room with authors demanding a larger share of publishers' revenues on the grounds that the publishers' costs and risks have both been reduced and, consequently, a more balanced sharing of the revenues is appropriate. Odds are that publishers will give ground here and increase royalty rates, as the alternative is more direct relationships between e-booksellers and big-name authors (e.g., Stephen Covey's exclusive digital rights deal with Amazon).
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David Hetherington
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