In case you've missed the brouhaha, All Romance Ebooks (ARe) have closed their doors and are offering authors a mere 10 cents in each dollar owed in royalties.
I'm an author with a publishing house, so how does that affect me? Great question! See, as an author I am paid by my publishing house a percentage of the cover price. This is called a Royalty. I don't get 100% because the house pays the editor, the cover artist and takes a chance on the sales of my book. In most instances I get around 35 cents in the dollar. On a $6.75 book I earn approximately $2.36 from each sale.
So, when ARe decided to pay me 10 cents in the dollar (and pays my publisher 10 cents for each book), my take drops to 23 cents - give or take - as remuneration for my hard work on The Sorcerer's Touch. Oops, hang fire, that doesn't look like a lot, does it? I have to sell 10 copies to make back an average royalty for one copy of my book.
Now, here's where it gets sticky. If anyone puchased my book after 27th through ARe they give NO undertaking to pay me or my publisher owed royalties. Yes, you read that right. Given that most of us were given a mere 3 days notice, that means that everyone was scrambling to turn off access to books, delete them and in the case of readers to download and back up the books.
We will be unable to remit Q4 2016 commissions in full and are proposing a settlement of 10 cents on the dollar (USD) for payments received through 27 December 2016. We also request the following conditions:
Along with thousands of authors, I'm left exposed. I have 3 houses where my books were offered for sale through ARe:-
Evernight Publishing (1 book)
Beachwalk Press (14 books)
Totally Bound (8 books)
Of these, 6 were titles released since June 2016 - meaning that ALL these books have their releases within the reporting period. At least 4 had made silver star (high selling with ARe) status.
So, what happens now?
Beachwalk Press have been great. They have undertaken to pay my royalties in full making them absolutely stupendous. I believe Evernight Publishing are offering the same deal. Totally Bound (Totally Entwined Group) have publicly announced that anyone who has bought a TEB/TEG book and can provide purchase details will honour the purchase through their website.
So, while I might think the actions of ARe are totally reprehensible, and while more and more details emerge, we authors and readers are stuck in a no mans land while decisions are being taken as to class actions and whether or not to accept the 10 cent proposed payment. I won't comment on what I think about that, though it does worry me that no one will be happy with the outcome and everyone will be a loser in this situation.
So where does that leave us? I urge you, readers, to buy direct from these publishers, and help support hard working authors and consider the options available to you. Read the information that is starting to emerge and draw your own conclusions.
All Romance Ebooks STEALS $$$ from its Authors
All Romance is Closing Effective 12/31/2016
All Romance Ebooks is shutting down
Publisher All Romance Ebooks: Closing hits new low in stealing from Authors
Court Documents Regarding All Romance Ebooks' disturbing business practices surface
There is a wealth of information now flowing publicly. If you have a moment, please do look through the information. Meanwhile I will continue to do what I do - write books for your to enjoy. Next week, I hope to bring you a list of ALTERNATIVE purchase places, so you can continue your love affair with Romance Books.
Until then, Imogene out!