I’ve been saying for some time now that very few, if any traditional publishers will go down in this transition.
I have been saying that the traditional publishers will get rich because the writers and their idiot agents caved in on changing electronic rights from 50% to 25% of net. Across the board. And no writer or group of writers seems to be willing to fight this.
This morning my wife, Kristine Kathryn Rusch, in her new blog, worked out the math and what is happening with traditional publishers and how they will be very, very rich on the backs of writers. She quotes corporate quarterly stock reports and everything. Read it carefully and if you don’t understand something, ask her or come back here and ask.
Bottom line: Indie writers can get very rich at 70% of gross on a novel.
Traditional publishers are going to be very, very rich only giving writers 25% of net of that same sale.
Don’t believe me, just read the quarterly reports on these large publishers. In this time of recession and transition, they are making money.