To: Anthony@Pacific who wrote (46337 ) 11/8/1999 5:06:00 PM From: If only I'd held Respond to of 122087
Anthony, for you...a little more information. InfoWorld: So what's the potential downside for these companies then? MacAskill: There is one issue. The economic model is quite different than it is for a book or a magazine article or something like that. The economic model is that we pay a 50 percent royalty to the author, and with a book you get 10 percent of the wholesale price. So if you just compute how many books you have to sell, and how long it takes you to write that book and everything, the economic model for what we do can be pretty sweet for an author. And that does threaten the publishers a little bit. When someone like Stephen King comes up and sells a million short stories and he gets 50 percent for each of those short stories, that's going to be phenomenal.infoworld.com infoworld.com Remember how Merrill Lynch did not want to get into the on-line trading arena because they felt the margins weren't worth it, only to realize later that they had no choice? Well, these big publishing houses are accustomed to only paying out 10% royalties to their authors. That's BS !! How long do you think these authors will continue under that model, when Fatbrain will give them 50% royalties? I say the big publishers better poop or get off the pot. When people think of on-line trading, they think of Ameritrade, Etrade, Datek, etc... Not Merrill Lynch. That's the first mover advantage. Personally, I see Ameritrade as a failing business model. Margins are too thin. But Fatbrain, at margins of 50%?? I see that as a very viable business model. Get your work up man. They are running that promotion until the end of the qrtr. 100% royalties to you. You should consider taking advantage. I hate to keep pestering you, but I really think you could make some good money from it. And I would like to see that happen.