According to a recent report by Bowker, the number of self-published titles was up 60% in 2012. In 2011 246,921 titles were self-published compared to 391,768 in 2012. Since 2007, there has been a 422% increase in the number of independently self-published books.

Now that self-publishing has officially arrived, the number of new companies offering services to independent authors has exploded. As with any “unregulated industry,” it is extremely important you thoroughly research companies before signing a contract or spending a dime. Although the internet is the primary research tool, there is a tremendous amount of misinformation and fraudulent companies preying on the new authors.

Before the digital book revolution, most of the industry’s complaints were directed towards “vanity presses.” There were countless horror stories of how authors paid money to a vanity press for book printing, warehousing, and distribution services and never received a dime in royalties. In many cases, these companies went out of business or did absolutely nothing to promote their clients’ books. Today, there are even more companies offering book publishing services and many who prey on self-publishers. Before engaging with a publishing service company, we recommend you do the following:

• Directly contact the company by phone. Ask questions about how long they have been in business and if they can provide actual referral contacts (don’t depend solely on web posted testimonials.)
• Check with the local Better Business Bureau (BBB)
• If you are researching a publishing company, ask to see multiple recent successful titles. A few companies might have hit it big with a single title and the remaining 99% of their clients only sold a handful of books.
• Inquire about how royalties are paid and tax information is provided.  We just heard a story how BookBaby does not provide 1099misc tax forms for royalties paid.
• Perform a Google search with the companies name and add the term complaint. This might bring up stories or posts by disgruntled customers.
• Check the company’s Twitter and Facebook posts. Many unhappy clients use Twitter or Facebook feeds as a platform to air their grievances.

Lastly, if you are considering using a book publisher please visit Preditors & Editors. This is a research site which denotes companies which have received complaints.  Obviously, if you are asked to sign a contract, please read it very carefully and try to get legal assistance before you sign. Be vary wary of any contract which cannot be easily terminated or involves exclusivity.

Book royalties are taxable income and should be included on your tax returns for money received greater than $10.  The United States Tax Code requires publishers to report royalties paid in excess of $10.00 in Form 1099-MISC. As an author, if you’ve earned more than $10.00 in royalty payments from a publisher (such as Amazon or Independent Publisher Press), you will receive a Form 1099-MISC before the end of January. Royalties received as a result of creative work such as writing, music and art, is considered self-employment income and is reported on Schedule C.  Authors DO NOT need to send their 1099 form with their tax return. The 1099 form is for your records and lets you know the amount the publisher has reported the Internal Revenue Service. We strongly suggest you discuss royalties and taxes with an accounting professional.

One reason we highly encourage ebook publishers to DIRECTLY work with Amazon (Kindle) and Apple is that their platforms provide ideal tools enabling self-publishers to generate the yearly 1099 tax forms. The marketplace is now polluted with small companies trying to act as ebook publishers for little or no money.  Self-publishers should be very cautious on the “publishing companies” they work with and their infrastructure to properly account for royalties and tax reporting. BEFORE YOU SIGN UP WITH A BOOK OR EBOOK PUBLISHING COMPANY (i.e. Book Baby, Lulu, CreateSpace, etc..) it would be prudent to inquire how they prepare their year-end tax summary. If they do not provide this function, it should be a clear indication they are not prepared to help you in the long term.

Ebook Publishing – Amazon Kindle Direct Publishing

We believe self-publishers should personally manage their ebook sales and not use third party services to “publish” their ebooks.

Why? The ebook market has matured to a point where self-management is easy and there are no downsides or costs. Since Amazon represents the lions share of the market and their account setup is FREE, it is only logical that self-publishers establish their own Kindle account. Aside from detailed sales data (by week), authors should not have to pay any annual fees to “catalog” their titles. In addition, the royalty management of publishing is quite complex and the tax reporting component is crucial. Due to Amazon’s size, these components are streamlined. Be very wary of just how diligent an ebook publishing company is going to properly manage sales and report taxes, if they do not make any percent on your sales.  There is no such thing as a free lunch.

By controlling and managing your own Kindle Direct Publishing account, you get expanded visibility to sales around the globe. For most genres, Amazon now accounts for 65-75% of the market. Although you might be initially forsaking a few sales from other resellers, you get to initially focus on marketing your book. As your ebook sales increase, you can certainly begin adding additional marketplaces and have more granular sales visibility to each marketplace. With the Apple iBookstore representing close to 20% of the ebook market, a combination of both would realistically cover the majority of viable ebook marketplaces. It is for this reason, Publisher Services provides both ePub and Mobi files are part of our ebook conversion services.

For printed books, Publisher Services operates a global distribution publishing company. We have a partnership with Ingram which enables us to offer our clients marketplaces around the globe.  We now have over 350 authors using our publishing label and the number one challenge we have is providing detailed sales data.  Ebook publishing is so now so much easier and authors can only benefit by managing this component themselves.

What is an ISBN and how is it used?

ISBN stands for “International Standard Book Number.” It is a unique identifier for books, eBooks, tapes, and CD’s. The ISBN numbering system is used worldwide and publishers around the globe identify their work in this standardized format. Each title or edition must be identified by a unique ISBN. In essence, the ISBN is similar to a license plate which guarantees that each book type product is identified uniquely.

The 13-digit identifier is composed of different parts. Each component is not intended to be parsed out individually and the entire ISBN should be used for title identification through the supply chain.

1. Group or country identifier – identifies a national or geographic grouping of publishers (US: 978-0-  and 978-1)
2. Registrant – identifies a registrant (publisher) within a group
3. Title identifier – identifies a particular title or edition of a title
4. Check digit – the single digit at the end of the ISBN which validates the ISBN.

The International ISBN Agency in the UK coordinates all ISBN allotments and individual group agencies assign ISBNs for each country. Every country has an organization which administers these numbers. These numbering organizations typically have a database component to their organization. In the US, the Global Books In Print database is maintained by the US ISBN Agency.  Title information for all assignments from Publisher Services are uploaded to this global database when provided.

The ISBN and title information are necessary for the wholesale and retail supply chains to efficiently identify and process books. Without a global database, every publisher would need convey title information with each of their individual retail/wholesale trading partners.  Large publishers, such as Random House, would constantly be sending title information to each of their clients every time a new book was released or altered. A global database enables all trading partners to share common information and reduce redundant data entry. Listing within the Global Books in Print database also enables titles to be “discovered.”

An ISBN is used to uniquely identify a title and format. Just as separate ISBNs are required for a hardcover and soft cover (perfect), digital versions of a title require a unique ISBN. Furthermore, the ISBN guidelines specify unique ISBN assignments are needed for varying ebook format (.mobi , .epub, pdf).

Quick Facts:

• The ISBN used on a printed book CANNOT be used on the ebook.
• Each digital version requires an separate ISBN.
• Substantial changes in content require a new ISBN. Note: A new ISBN is NOT required for a change in price, but a new barcode may be required for printed versions with pricing printed in the barcode symbol.
• Some ebook publishing services allow publishers to use an ISBN assignment from their own assigned block.  Although this is completely acceptable, the publisher will not be able to use the same ISBN assigned by the ebook publishing company in other marketplaces.