While some better funded e-publishing firms didn't make it through 2001, smaller startup ventures, like 1stBooks.com , a print-on-demand and e-book publisher and retailer, have managed to flourish.
Founded in 1996 primarily as an e-book company, 1st-Books.com has since focused on POD subsidy publishing and seen its revenues grow from $118,000 in 1997 to more than $10 million in 2001. Robert McCormack, COO of 1stBooks, told PW that the business is "doing exceptionally well." And while he declined to give a specific revenue target for 2002, he told PW, "The company is profitable. We've doubled revenues from the year before, and we're looking to double revenues again this year."
The 1stBooks retail Web site now offers more than 10,000 different titles by about 8,000 authors of all types, from single-title novices to out-of-print books by veteran published authors. The company has printed more than 500,000 POD books since its launch and offers e-books in the PDF format.
"We see a great market and we offer the services that authors need," said McCormack. The company has added an option that gives its authors the ability to determine the price of their books in consultation with the company. 1stBooks titles are priced according to the page size of the volume and optional premium services (such as additional design or marketing) that an author may desire. Book prices can range from about $8.50 to $15; authors can choose to sell their titles at a higher price--and higher royalty rate--or at a lower price and royalty. Royalty rates are higher (from 10% to 50%) through the 1stBooks retail site, and range from 5% to 15% when titles are sold through other retail outlets. 1stBooks charges an author $399 to publish an e-book; $300 of that fee is a deposit that is refunded by a 100% royalty charged on the e-book's sales until the deposit is paid back. The POD fee is $199.
1stBooks has grown from 25 employees in 1999 to 75 employees currently, and the company recently moved to a new office in Bloomington, Ind., "doubling our square footage," said McCormack. And while POD titles "are the vast majority of our business," said McCormack, "our e-book sales are growing, and we still believe in e-books over the long haul."
