What We Spend Our Money On

As part of our continued effort to be as open as possible about the business of making books, we’d like to share a list of things we spend our money on at Dagan Books. This is outside of what we pay our authors, artists, and guest editors. (Our Publisher continues to volunteer all of her time as an editor, artist, and administrator, and is not paid.) As we grow we expect to incur additional expenses, especially related to publicity and to a larger presence at professional conventions, but most of what’s posted below has been part of our operating costs since the beginning.

  • Annual fees for websites (we currently have six sites we manage), including domain registration and hosting.
  • Monthly fees for the service that hosts our ebook sales via our website, and for our submissions portal.
  • Twice a year payment for our PO Box.
  • Copies of our books – all of our artists, authors, and editors get both print and digital copies of the books their work appears in. In addition, our volunteer staff also get copies of our titles. We also send review copies in either print or ebook formats, depending on the reviewers’ preferences. Plus we host giveaways of our latest releases on Goodreads and in other places.
  • Shipping – domestic and international shipping of contributor and review copies, giveaways, promotional items, and more. This includes media rate where applicable, priority mail where necessary, package tracking, and other shipping fees. This also includes the cost of mailing and packaging materials like the bubble mailers we ship all of our books in.
  • Promotional items such as postcards advertising upcoming books, and Kickstarter rewards.
  • Advertising; includes digital ads like the one we placed at Innsmouth Free Press for Cthulhurotica, and print ads like the one which will appear in the 2012 WFC program.
  • Space rental for readings (WFC 2012, for example, charges $100 for a small room, and more for larger rooms or evening time slots).
  • Office supplies, one-shot printing (for example, to print a copy of a title in progress at Staples), and other miscellaneous small expenses.
  • Convention expenses have included memberships, room rental, food, and travel, but is still largely paid for out of pocket by the staff who attend.

Our biggest single cost has to be the contributor & review copies. We’re going to send out hundreds of books this year: to dozens of reviewers (for each title); to the 15 contributors of IN SITU, the 35 contributors to FISH, and the 20 authors in Bibliotheca Fantastica; to our individual novel and collection authors (who get more books than anthology contributors but are expected to help more with promoting their titles); to our guest editors; to the winners of our contests and to the backers of our Kickstarter. Add the cost of buying the books and shipping them to us, then getting them signed (wherever possible), then buying the packaging materials to ship the books, and finally sending them all over the world (to ship one copy of IN SITU to a single non-US contributor costs us about $20).

We understand why so many small presses don’t send out contributor copies, or don’t send print copies, or don’t allow submissions from international authors, but getting to hold – in your hands – a print copy of a book with your words, your story, is a beautiful thing, and we’d never want to take that away from our contributors. And choosing not to send out print copies to reviewers may save time, but you lose even more in terms of publicity and a chance to meet new readers. Lastly, we could choose to close submissions to non-US authors, thus saving ourselves the international shipping charges, but we’d lose so much in terms of new voices, new perspectives on fiction, that we never considered it.

Payment and Rights information for Novellas

We’ve been asked what they pay rate is for our novella series. You can find that information here, but we wanted to explain it a little more fully.

We’re buying First Worldwide English-language rights for print and digital (ebook) for novellas. The payment breaks down as follows:

  • For the individual ebooks, we’re paying 50% of net sales.
  • For the yearly ebook subscription, and the annual ebook collection, which will contain four novellas, you will get 12.5% of net sales (equal to 50% of 1/4 of the book’s net sales).
  • For the print collection, you will receive 1 cent per word.

How this works for you:

Say we buy your 25,000 word novella. It comes out January 2013 as an individual ebook. Each quarter end (March, June, September, and December) we calculate the net sales – the amount that we actually get from the sale of the book. If, for example, we sell the novella for $2 through Amazon, we might get 70% or 35% depending on the country the buyer is located in. If we get 70%, then we also have to pay a “delivery” fee. So from a $2 sale, we might net $1.20. Sixty cents of that (50%) would be yours.

Then we also sell subscriptions via our website. The $10 we charge gets buyers all four novellas delivered to them automatically throughout the year, at least a week BEFORE they’re available for sale anywhere else. The fee we pay to be able to sell that online is lower, so we might get to keep $9.00 of that. You would get $1.12 for each subscription that includes your novella.

Since all of the ebook sales are calculated quarterly, including subscriptions, you would get paid for both every three months. However, while the individual ebooks will be on sale forever, your novella will only be included in subscriptions for a 12 month period.

When the print collection comes out at the end of the year, you’ll be paid an additional 1 cent per word – or in the case of your 25,000 word story, another $250.00. You won’t get any royalties on the print collection, but you’ll keep getting your ebook royalties as long as your novella is selling.

It’s been our experience that digital books sell 10 times more than print, and we often don’t make enough to cover the cost of the print book (payments to contributors) through print sales alone, but releasing a print book helps to drive the sales of ebooks through physical presence in stores and at conventions. Also, many reviewers only want print copies of a title, so creating a print book helps to get reviews and word-of-mouth advertising for your story.

All funds payable in US funds via Paypal or US bank check. Ebook payments calculated quarterly; print payment will be sent out within 60 days of print publication. Contributors also receive 3 copies of print collection (publisher pays shipping) and 1 ebook (both .epub and .mobi/Kindle versions).

Follow Our Staff and Contributors on Twitter

We have to admit that around the Dagan Books offices, Twitter is our favorite social media. It offers bite-sized news bits, plus that 140 character limit forces us to be creative in order to be witty. What’s not to love? Sure, not everyone can master the shortest of short forms, but we’re writers and editors and artists. We love a challenge.

We’ll keep this list updated, so be sure to bookmark it for future reference.

Carrie Cuinn, Publisher/Editor/Artist @carriecuinn

Don Pizarro, Editor ( Bibliotheca Fantastica) and Author (Cthulhurotica) @donp

Galen Dara, Art Director @galendara

Andrew M. Kelly, Associate Acquisitions Editor, Short Fiction @a_m_kelly

Kelly C. Stiles, Associate Acquisitions Editor, Novellas, and author (IN SITU) @ladykuro

Other Contributors:

K.V. Taylor, co-Editor for FISH and Author (Inedible SinsCthulhurotica, IN SITU) @hawthornetaylor

Oliver Wetter, cover artist for Cthulhurotica and IN SITU @fantasiox

[Read more…]

2011 in review

The WordPress.com stats helper monkeys prepared a 2011 annual report for this blog.

Here’s an excerpt:

The concert hall at the Syndey Opera House holds 2,700 people. This blog was viewed about 24,000 times in 2011. If it were a concert at Sydney Opera House, it would take about 9 sold-out performances for that many people to see it.

Click here to see the complete report.