While reading The Millionaire Fastlane , I had (what I thought was) a great idea:
Electronic books such as Kindle and Nook are up and coming - seriously. And, there are tons of authors who have had books that sell reasonably well on Amazon.com, but they haven't had them converted to the new electronic formats.
So, what if I contacted and negotiated with these established authors to convert their books to the most popular electronic formats (Kindle, Nook, ePub, others) and distribute them via the major electronic book retailers (Amazon, B&N) in return for a share of the profits.
Here is how I rate it on the CENTS scorecard:
N (Need) - Yes, there is a valid need for books to be converted, but it may dwindle over time since almost all new books are simultaneously being published in ebook format. Additionally, many older books that were mass-published are available in used paperback for $0.01. However, some people value convenience over price, and will pay for the Kindle/ebook version just so they can have instant delivery and not have to wait.
E (Entry) - There are six advertisers on a Google search for "Kindle conversion service". There are a similar number of advertisers for "ebook conversion service". The typical service seems to be 1) charge you an upfront fee to convert your book; and 2) charge 10-15% commission for sales on your book. Entry is limited to those who know how to convert books to ebooks and make them look good (some ebooks look like crap).
C (Control) - This would depend on the terms negotiated with the authors. If they paid the upfront fee for conversion, they would expect to be able to take their converted ebook and walk if they wanted. Not much control there. If, on the other hand, I offered "no upfront fee" and made money from the commissions, I would negotiate exclusive distribution rights through specific distribution channels for a certain period of time.
S (Scale) - By using the Internet as a distribution system, especially Amazon and Barnes & Noble's ebook stores, I can achieve scale. This is especially true if I go with authors who are already published and selling physical books on Amazon / B&N, since I can readily determine whether those books are selling well.
T (Time) - This is one of the main sticking points. For this to meet the CENTS criteria, I will have to develop a system that 1) secures clients; 2) converts books to ebooks; and 3) distributes them via ebook stores; and all of this will have to be done with me removed from the time equation (at some point). This will likely require people, which involves management, both of which are mild curse words in my book.
I'm going back and forth on this one, but I think it's possible. I would appreciate your input on this - any flaws in my evaluation of this idea? Anything I've overlooked or idealized?
Electronic books such as Kindle and Nook are up and coming - seriously. And, there are tons of authors who have had books that sell reasonably well on Amazon.com, but they haven't had them converted to the new electronic formats.
So, what if I contacted and negotiated with these established authors to convert their books to the most popular electronic formats (Kindle, Nook, ePub, others) and distribute them via the major electronic book retailers (Amazon, B&N) in return for a share of the profits.
Here is how I rate it on the CENTS scorecard:
N (Need) - Yes, there is a valid need for books to be converted, but it may dwindle over time since almost all new books are simultaneously being published in ebook format. Additionally, many older books that were mass-published are available in used paperback for $0.01. However, some people value convenience over price, and will pay for the Kindle/ebook version just so they can have instant delivery and not have to wait.
E (Entry) - There are six advertisers on a Google search for "Kindle conversion service". There are a similar number of advertisers for "ebook conversion service". The typical service seems to be 1) charge you an upfront fee to convert your book; and 2) charge 10-15% commission for sales on your book. Entry is limited to those who know how to convert books to ebooks and make them look good (some ebooks look like crap).
C (Control) - This would depend on the terms negotiated with the authors. If they paid the upfront fee for conversion, they would expect to be able to take their converted ebook and walk if they wanted. Not much control there. If, on the other hand, I offered "no upfront fee" and made money from the commissions, I would negotiate exclusive distribution rights through specific distribution channels for a certain period of time.
S (Scale) - By using the Internet as a distribution system, especially Amazon and Barnes & Noble's ebook stores, I can achieve scale. This is especially true if I go with authors who are already published and selling physical books on Amazon / B&N, since I can readily determine whether those books are selling well.
T (Time) - This is one of the main sticking points. For this to meet the CENTS criteria, I will have to develop a system that 1) secures clients; 2) converts books to ebooks; and 3) distributes them via ebook stores; and all of this will have to be done with me removed from the time equation (at some point). This will likely require people, which involves management, both of which are mild curse words in my book.
I'm going back and forth on this one, but I think it's possible. I would appreciate your input on this - any flaws in my evaluation of this idea? Anything I've overlooked or idealized?
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