This month’s focus: Make Sure You Own Or Control Your Livelihood
In today’s new and ever-changing world of technology, one thing is becoming crystal clear: Far too many entrepreneurs have no understanding of what they own or, what rights they’re giving away to others.
In the mad rush to be all things to all people everywhere, many would be (as well as current) entrepreneurs are giving away the ownership or rights to their intellectual property both unintentionally as well as willfully.The problem in most cases is due to ignorance. Although this is curable, the price paid for a cure may be more than most will have ever bargained for.
Case Study: Currently there is a great debate and argument playing out with the business model of the internet of yesterday to the one that it is transforming into today. An example to watch currently is Amazon™ vs Hachette™. The battle has a few different elements to it, however, the most compelling is the audiobook portion taking place amongst other various titles, publishers and authors.
Not only does Amazon want to dictate the selling price along with a larger portion of the profit. It now is allowing users via a feature through its audiobook division to allow purchasers of a book to listen to the audio version for $1.99. irregardless if that audiobook is sold everywhere at much higher prices. e.g., Many popular titled audiobooks sell at around $45.00
The pressure to allow digitally distributed products to be priced at prices that are “good for the customer” based on the rationale of “cost of distribution” is ludicrous. One would never put forth a serious argument if one found a dollar bill, they should in turn sell it to someone for 5o cents, because after all, they found it, it cost them nothing and was pure profit. Yet this is the argument in kind being put forward.
This is one reason why I curtailed the release of my own audiobook version of my first book. The reason for it was simple, as I was entering the studio in preparation to recording, setting up the studio time, engineer, director and others; the cost factor continued to escalate. If I were to release the original version in audiobook fashion via the now accepted norms, I would be subject to this same issue crushing any hopes of ever recouping production costs, let alone any profits. So I released a version I was comfortable with for free in iTunes™
Although my own audio version is currently available for free: I own both the rights, and the distribution channels of how and where my material goes. For if one doesn’t: You’ll have nothing worth selling down the road for you gave everything away, all at your own expense – while others profited on your behalf.
It can cost tens of thousands of dollars to produce just 1 audio book properly. Whether or not you believe you can recoup that cost at $1.99 or $199.99 doesn’t matter. That should be a decision discussed and agreed to by all. If a third-party distributor is allowed to dictate terms of sales you don’t agree to and have no way of stopping or opting out; you don’t have a viable business. As a matter of fact, you don’t have a business at all. What that’s called is indentured servitude.
© 2014 Mark St.Cyr
Profiting At The Bottom Line™ is a monthly memo, which is pithy, powerful, and to the point. It focuses on innovative techniques and or ideas that you can put to work immediately in your daily or business life.