Free Giveaways – Two Sides of the Same Coin, Karl Wiggins
By Karl Wiggins
Karl Wiggins is the self published Author of hilariously funny books, including, Shit my History Teacher Did Not Tell Me. But Karl also has a serious side and has penned the following blog. Thank you Karl for allowing me to share this most troubling trend with my readers.
Last time I had a freebie the retweets and Facebook shares were ‘out there’ for at least another month. I know this, because book sales went up substantially during that period. And this time I was expecting better results. I know already, of course, how many mini-cab and taxi firms have re-tweeted my promotion or shared it on Facebook. And if I could be bothered – which I can’t – I could work out exactly how many people those tweets etc. went out to.
Leaving aside the supporting authors, writers, bloggers, book reviewers etc. just imagine the couple of dozen cab drivers who re-tweeted me to their thousands of followers or people who ‘like’ their Facebook pages. The book’s not free anymore, but for the following month cab drivers would have been checking it out, re-tweeting it themselves, finding out it now costs £0.99p on Amazon, thinking to themselves, “I’ve never heard of Karl Wiggins. It’s probably crap, but for £0.99p I’ve nothing to lose really,” and clicking on ‘Buy Now.’
It’s a numbers game of course, and it’s a nice thought that it will reach hundreds of thousands of people, but I’m pragmatic enough to understand that only a small percentage of those will act on it.
So where would you start trying to explain the advantages of a loss-leader to someone, even a businesses person, who clearly missed that class in ‘Business Studies’ at school? First of all, a free giveaway isn’t a loss-leader at all, is it? A loss-leader is when a product’s sold below market value in order to stimulate sales of a more profitable product. In other words the vendor makes a ‘loss’ on one product but that ‘leads’ to more sales of another product.
Well I haven’t made a loss on those 1000 books, have I? And anyone who thinks I have clearly doesn’t understand e-publishing. Most vendors have to buy their product in the first place. If they give it away for free they’re making a loss. Thus the obtuse statement, “But you didn’t make any money out of those books, did you?”
This particular person has to fork out for product, petrol, phone bills, stationary, equipment hire, wear & tear on vehicle, advertising, marketing and so on. They can’t afford to give anything away. The thought of giving a product away would no doubt bring them out in a cold sweat. What they fail to understand is that my product doesn’t cost me a penny. It’s extremely time-consuming to write a book, and that’s another matter, but to market an e-book doesn’t cost me a single penny.
So I’ve now got 1000 people reading the book who otherwise would probably never have done so. Which this sole trader doesn’t have, do they? After one week’s work they haven’t exactly attracted 1000 new customers to their business.
“But,” I hear again, “They’re reading it for FREE!! What good is that to you in the long run except for selling a few more books next month?”
DUUHHH!! Okay, to clarify, I’ve attracted 1000 new people to my business without any advertising costs whatsoever. And don’t be misled into thinking they’re one-time buyers, but more about that later. It really is only e-businesses that spend no money on advertising. Most sole traders have a website, of course, but they still use Yellow Pages, local newspapers, pamphlets, business cards and so on. Larger businesses – traditional publishers for instance – have print runs, premises, cleaning, electricity, water & gas, employee costs (salaries, health plans, pensions etc.), company cars and of course advertising. Not looking like such a turnip now, am I?
And are my 1000 new customers just one-time buyers? Let’s hope not. That depends on the quality of my writing. I’m very much aware that I have an inappropriate sense of humour that isn’t to everyone’s taste, and that not everyone ‘gets’ me. And I’m alright with that, in fact I take it as a compliment because if all I wrote about was roses on postcards and kittens and stuff like that then I’m not being controversial enough.
Most of my writing is my lifestyle observations, making every attempt to bring to life all the not-so-ordinary people that cross my path, even if most of them break my balls. This does, however, have the affect that a lot of people smile, laugh or ‘wet their knickers,’ and either way you look at it that’s got to be a success!
So are my 1000 new customers just one-time buyers? Well not if they enjoy the book. Readers naturally search out other books by a writer they like, so if they enjoy the first book they’ll purchase others. And just as importantly they’ll give good reviews. Not all readers understand how important a review is to a struggling scribbler, but I try and review everything I’ve read. Good reviews lead other people to purchase the book. Even better if they can establish a relationship with me. Readers love to communicate with writers. And from my point of view I’m hugely appreciative that they care enough to contact me. I will always reply to tweets, email correspondence or contacts through Facebook.
Never before have readers been so willing to take a chance on an unknown author. They’ve spent money on their Kindle or Nook or I pad or whatever and they’re anxious to load it up. They can spend £10 on a traditional author’s book or £0.99p on mine. For the first time in history that traditional author now has to prove he’s ten times better than me. By offering books for free I’m building a following one contact at a time. And guess what? More and more people are buying Kindles!
HOWEVER, playing devil’s advocate for a minute and looking at the other side of the coin, allow me to tell you a little story. You see I lived on the Algarve for four years, and every year all the bar owners would get together – stay with me because THIS IS REALLY IMPORTANT TO ALL OF US – and agree amongst themselves on such issues as standards for touting (no one would tout outside someone else’s bar), the price of beer and so on.
For instance, way back then the price of a large beer was 200 escudos. This is before the Euro, you’ll remember. Everyone would agree on this, but I’m sure you can guess what always happened next? Before you knew it, there was a bar knocking out large beers for 180 escudos, or another bar offering free biscuits with a cup of tea. By the end of the season you’d find bars selling large beers in Happy Hour for 100 scuds, and then only raising the price to 150 when it was time for karaoke.
And guess what? The only person who won was the punter, the Billy Bunter, the tourist, the holidaymaker or the grokel, whatever you want to call him. Not the bar owners. They didn’t win. They all ended up competing with each other every year to fill their own bars with tourists who actually threw precious little of their hard-earned holiday savings over the jump.
But that wasn’t the real problem – PLEASE STAY WITH ME, THIS IS REALLY, REALLY IMPORTANT TO YOU AND ME. The real problem was that every year the breweries put up the price of a barrel of beer. In the four years I lived there I saw it go up from 2000 escudos to over 6000 escudos (Heaven knows what it is now!) but the bar owners couldn’t put up the price of a large beer because they’d price themselves out of the market. Their bar would be empty. Profits dwindled to such an extent that it became really, really hard for them to earn enough money in that short four-month summer window from June to September to last the whole year round.
But it was to get worse – AND THIS WHERE YOU AND I COME IN – for you know what happened next? More and more Johnny-come-latelies arrived to open bars on the strip. They lacked the experience, they didn’t know what they were getting into, THEY DIDN’T KNOW WHAT HARD WORK IT COULD BE OR HOW TIME-CONSUMING, but they were willing to do anything it took to entice punters into their own bars. They didn’t even really care about profits. They were in the sunshine and that was all that mattered.
Does this familiar? It should!
What was once a nice strip with about 20 bars now has over 100. It is horrible! Teenagers drinking cheap alco-pops, puking up and fighting in the street. Nicer people have moved out, retired or bought quiet little bars inland. They don’t make any money, of course, but they can’t compete with the Strip.
Now I hope you’ve stayed with me so far because those of you who are astute enough will have realised that I can at times, if nothing else, be a master of the metaphor, because this is exactly the same scenario that is happening to Indie authors right now. And I have a very serious concern about it.
Before I go on allow me to say that by cogitating over what I’m about to write I’m opening myself up to accusations of hypocrisy, because I have been in the past just as much a part of the problem as everybody else, and I admit that.
It’s only in the last couple of years that we’ve been able to stick two fingers up at the publishing houses and the vanity publishers, who’ve had things their own way for far too long. Do you want to hear my war stories concerning Print on Demand and rip-offs? I didn’t think so, for we can all tell similar stories.
But nowadays you and I are in charge. We write the books, we publish them, we have no one demanding to edit our very own style out of our writing, and we promote them.
HMV went bust a year ago after 92 years, with the loss of 239 stores and 4350 jobs. The reason; digital downloads.
There is really now no place for the high street retailer – records or books. Why would anyone bother to get dressed, drive downtown, find a parking space, walk to the book store, search through all the books and choose one to read when the much simpler option is to fire up your Kindle (still in your jimmy-jams), buy the book and be reading it by the time you’ve finished your second cup of coffee?
The only thing that keeps traditional publishers from realising they’re a dying breed is nothing but their own bloody arrogance!
Their comeuppance is well overdue.
But here’s my concern, and it really troubles me. Just like the bars in Portugal, we as writers have now been forced into the situation whereby we’re all competing with each, and we’re doing that by knocking down our prices. Now when I say competing, that takes absolutely nothing away from the very supportive nature that I’m absolutely convinced the Indie author community has towards each other. All of us totally understand the hard work we each put in writing our books, and the harder work it takes to promote them. But once we’ve written them, we want people to read them, and it would be nice to make a little bit of ‘folding’ out of it, wouldn’t it?
So we knock the prices down, giving five-day giveaways in our own version of Happy hour, yet the only person who wins is the punter, who in this case is the reader.
We’ve reached the stage whereby people are now trawling Amazon looking for free books. There are even companies that list them!!!!
And, just like the Algarve, in the next year or so there will be so many Indie authors on Amazon, what chance will we have? Readers will only download free books! Someone will probably come up with a clever geeky-type thing that says, “Notify me when this book is free.”
I don’t know the answer to this, but if you spend a year writing your book, why should you give your hard work away for free?
I am truly concerned about what will happen in the long run. What’s the next step? Giving books away for free and then selling advertising space around those books? Maybe we’ll end up writing books just as a loss-leader to sell advertising.
Depressing, isn’t it?
It would be no good campaigning for Amazon and the like to cease offering books for free because they wouldn’t. They want to sell Kindles.
I just don’t know where we, as writers, will be in five years’ time. With more and more authors writing books and offering them for free there will be no reason whatsoever for a reader to pay anything at all to download a copy.
I do know one thing though. If this issue is not addressed – by Amazon ideally – the whole self-publishing industry will go into free-fall and eventually implode.
The only people who can sort this are Amazon. The traditional publishers may well be right now sitting on the side-lines, biding their time, waiting for the whole self-publishing industry to cave-in. At which stage they will take over again. Amazon won’t care, of course, because they’ll continue selling Kindles, only book prices will go through the roof, and they’ll make even more commission!
By offering our books for free not only are we devaluing our product but we’re forcing each other to compete. And readers aren’t stupid. They realise what’s happening. I have a friend who doesn’t pay for anything if she can help it. She doesn’t pay to download music, films or books, but can you blame her?
It isn’t just this industry or the bars on the Algarve that face this problem. The mini-cab industry is being taking over by foreign migrants who’ll take, say, a £55 airport run and offer it for just £35 with the return for free. How can anyone compete against that?
In a recession this is quite possibly a global issue, but all authors and writers want to do is earn a little bit of cash from our writing. And if this isn’t sorted soon that may very well become an impossibility.
I will never, ever offer one of my books for free. If I do please feel free to come to my house en masse, build some stocks in the driveway and have all the neighbours throw tomatoes (in the can) at me. Sue will give you a warm welcome. In fact, she’ll probably help!