One thing Coker says raises again for me the question of whether the agency model, with its artificial inflation of traditionally published ebook prices, may actually have been a good thing for the growth of indie publishing:
If an author can earn the same or greater income selling lower cost books, yet reach significantly more readers, then, drum roll please, it means the authors who are selling higher priced books through traditional publishers are at an extreme disadvantage to indie authors in terms of long term platform building. The lower-priced books are building author brand faster. Never mind that an indie author earns more per $2.99 unit sold ($1.80-$2.10) than a traditionally published author earns at $9.99 ($1.25-$1.75). (accessed 7/26/12)
Indies are selling a lot of units because their prices are so much lower. That means they actually account for a far bigger part of the book-selling pie than you’d realize if you quote the usual 30% share, which is based not on units sold but on sales in dollars. Selling more units = introducing more readers to your brand. Add to that benefit something Coker doesn’t mention — many indie writers are able to put books out there (i.e., grow their product line) much more quickly than they could were they publishing traditionally — and you end up with a pretty big head start over traditionally published competitors. Especially during a quasi-global recession.
So wouldn’t anything that magnifies that advantage be good for indies? And hasn’t the agency model done just that by artificially inflating the prices of traditionally published ebooks? I think the only way to believe this hasn’t happened is to think that books simply don’t compete with one another. And you know, I’d love to think that books are somehow outside the competitive marketplace, that readers don’t purchase on a budget, weighing our precious artworks thusly: Hm, I could buy this book for $12.99 or these four books for $2.99. Sure, I wish books transcended such base calculations, but I really doubt they do.
Would indie publishing have made such amazing strides over the last few years if traditionally published ebooks had been more reasonably priced, starting in 2010? Dunno, but I suspect the vast price differential has something to do with The Indie Surge, and that the agency model may have been busily putting the nails in the coffin of traditional publishing these last few years — quite the opposite of its intended effect.