In the category of "better late than never" I figured I would share some exciting news from July. Every year the Denver Business Journal recognizes the fastest growing privately-held companies in Colorado, based upon reported revenue for a three year period of time. The companies that demonstrated the greatest overall percentage of revenue growth between 2004 - 2006 were honored at a breakfast banquet in downtown Denver. The fastest growing company was a software company (Rally, I think), out of Boulder. The second fastest growing company was also a software company.
Outskirts Press was the third fastest growing privately held-company, which is a testament to the value our authors find in our services.
Even though I live and breathe this industry every day and night, it takes a step out into the other business sectors to realize just how revolutionary (and still brand-new) the concept of print-on-demand publishing truly is. When I was speaking at the podium while accepting the award, and explained what it is we do, there were surprised and amazed looks on the faces in the crowd. "I can pull that old forgotten manuscript out of my bottom drawer, dust it off, and give it to you and actually be selling it from Amazon in about 12 weeks?" their jaw-dropping expressions seemed to ask.
Writers and authors who are already searching for a solution to their publishing woes are already well-informed about their publishing choices.
But 95% of our market remains untapped, because these are people who would never think of typing "self publishing" into Google.
Our task is tapping them...
Showing posts with label self publishing. Show all posts
Showing posts with label self publishing. Show all posts
Tuesday, August 21, 2007
Wednesday, August 15, 2007
Navigating the Amazon Sales Ranking
A companion piece to the audio file I posted yesterday is the separate article I published about Amazon's Sales Ranking. Here I try to explain how the ranking works and define what value you can derive from it:
First, the disclaimers: Since the algorithm Amazon uses to generate its sales ranking is proprietary, the details contained herein are extrapolated from research and field tests. The resulting consensus finds Amazon’s system to provide marginal sales data at best.
To whit, read Amazon’s own definition of its system, slightly paraphrased from their FAQ: “The Sales Ranking system exhibits how books are selling. The lower the number, the higher the sales. The calculation is based on sales and is updated each hour to reflect recent and historical sales of every item sold. We hope you find the Amazon.com Sales Rank interesting!” This last sentence seems to indicate Amazon’s own perspective on the importance with which the sales rankings should be viewed.
You’re not supposed to find the sales rankings informative or helpful. You’re supposed to find them interesting.
In actuality, the process is somewhat more convoluted than they let on. Only the top 10,000 books are updated every hour and the ranking does not depend upon the actual number of books sold, but rather, on a comparison against the sales figures of the other 9,999 books within that same hour. Simultaneously, a trending calculation is applied to arrive at a computerized sales trajectory. So, hypothetically, a book that held a ranking of 2,000 at 2pm and 3,000 at 3pm, might hold a 4,000 ranking at 4pm, even if it actually sold MORE books between 3-4 than it did between 2-3.
Books with rankings between 10,000 and 100,000 are recalculated slightly differently. Current projections, as well as historic sales information play a key role in these calculations. In fact, the predictive nature of the Amazon ranking system is what makes it possible for a newly-released book to outrank an older established title, even though the actual sales figures for the latter far exceed the former.
Books with rankings over 100,000 are applied with historic sales information and projections, although in the case of these books, history takes a back seat. Sales projections and trending take an active role here, which is why a book’s ranking can leap from 900,000 to 200,000 in the span of 24 hours or less. Does this mean the book has sold 700,000 copies in 24 hours? Absolutely not! What it does mean is that recent activity (i.e. purchases) for that book is trending higher than those 700,000 books it just surpassed. But, don’t get excited just yet; since the activity of those 700,000 other books range from slow to stagnant, one or two orders are sufficient to catapult a ranking.
If a book’s ranking breaks into the top 100,000, the sales history calculation starts to rear its head, which is why a “phenomenon” book has a hard time maintaining a high, legitimate ranking. A phenomenon is defined by a book that leaps from the high hundred-thousands into the lower thousands (or better) in the span of 24 hours or less, usually due to some concentrated marketing initiatives. Since Amazon’s sales history for that title doesn’t support the leap, the spike occurs and then quickly drops again.
HOW DOES ALL THIS TRANSLATE TO ACTUAL SALES FIGURES?
Since the data is recalculated every hour, it’s impossible to get cumulative sales figures, although those figures are applied to the algorithm during the calculation. No, to get a very rough idea of the actual number of books being sold, the sales ranking has to be dissected dynamically, with the same immediacy as the ranking being calculated. Chart the ranking of a top 10,000 book every hour for 24 hours and divide by 24 to arrive at its average daily ranking.
First, the disclaimers: Since the algorithm Amazon uses to generate its sales ranking is proprietary, the details contained herein are extrapolated from research and field tests. The resulting consensus finds Amazon’s system to provide marginal sales data at best.
To whit, read Amazon’s own definition of its system, slightly paraphrased from their FAQ: “The Sales Ranking system exhibits how books are selling. The lower the number, the higher the sales. The calculation is based on sales and is updated each hour to reflect recent and historical sales of every item sold. We hope you find the Amazon.com Sales Rank interesting!” This last sentence seems to indicate Amazon’s own perspective on the importance with which the sales rankings should be viewed.
You’re not supposed to find the sales rankings informative or helpful. You’re supposed to find them interesting.
In actuality, the process is somewhat more convoluted than they let on. Only the top 10,000 books are updated every hour and the ranking does not depend upon the actual number of books sold, but rather, on a comparison against the sales figures of the other 9,999 books within that same hour. Simultaneously, a trending calculation is applied to arrive at a computerized sales trajectory. So, hypothetically, a book that held a ranking of 2,000 at 2pm and 3,000 at 3pm, might hold a 4,000 ranking at 4pm, even if it actually sold MORE books between 3-4 than it did between 2-3.
Books with rankings between 10,000 and 100,000 are recalculated slightly differently. Current projections, as well as historic sales information play a key role in these calculations. In fact, the predictive nature of the Amazon ranking system is what makes it possible for a newly-released book to outrank an older established title, even though the actual sales figures for the latter far exceed the former.
Books with rankings over 100,000 are applied with historic sales information and projections, although in the case of these books, history takes a back seat. Sales projections and trending take an active role here, which is why a book’s ranking can leap from 900,000 to 200,000 in the span of 24 hours or less. Does this mean the book has sold 700,000 copies in 24 hours? Absolutely not! What it does mean is that recent activity (i.e. purchases) for that book is trending higher than those 700,000 books it just surpassed. But, don’t get excited just yet; since the activity of those 700,000 other books range from slow to stagnant, one or two orders are sufficient to catapult a ranking.
If a book’s ranking breaks into the top 100,000, the sales history calculation starts to rear its head, which is why a “phenomenon” book has a hard time maintaining a high, legitimate ranking. A phenomenon is defined by a book that leaps from the high hundred-thousands into the lower thousands (or better) in the span of 24 hours or less, usually due to some concentrated marketing initiatives. Since Amazon’s sales history for that title doesn’t support the leap, the spike occurs and then quickly drops again.
HOW DOES ALL THIS TRANSLATE TO ACTUAL SALES FIGURES?
Since the data is recalculated every hour, it’s impossible to get cumulative sales figures, although those figures are applied to the algorithm during the calculation. No, to get a very rough idea of the actual number of books being sold, the sales ranking has to be dissected dynamically, with the same immediacy as the ranking being calculated. Chart the ranking of a top 10,000 book every hour for 24 hours and divide by 24 to arrive at its average daily ranking.
Monday, August 13, 2007
Sell Your Book on Amazon
Outskirts Press has been very busy since I last updated this blog a few months ago (not counting the quick post I uploaded yesterday from our most recent e-newsletter). I will try to simultaneously bring you up to date and also stay current on new developments. Today I submitted my latest book SELL YOUR BOOK ON AMAZON to two different book award contests. Contests are a dime a dozen, so I'm trying one to see if we would be comfortable recommending our authors to it next year. It's the Best Books 2008 awards by USABookNews.com. Worth it? We'll see. The other I submitted to is the Benjamin Franklin Awards, sponsored by PMA. This is a well-known contest, although I still have my reservations about it, probably because their judges seem to have reservations about on-demand books (judging from the list of previous winners). But, ultimately, that tide will turn. It's just a matter of when.
Since we're discussing SELL YOUR BOOK ON AMAZON, it's also worth noting that in the previous months I submitted it to a number of other contests, too, including ForeWord Magazine's Book of the Years, and the one sponsored by Writer's Digest.
One last comment about SELL YOUR BOOK ON AMAZON. The month is was published, it reached #29 overall on the bestseller list on Amazon, and #2 in its category. It's nice when a book practices what it preaches.
Since we're discussing SELL YOUR BOOK ON AMAZON, it's also worth noting that in the previous months I submitted it to a number of other contests, too, including ForeWord Magazine's Book of the Years, and the one sponsored by Writer's Digest.
One last comment about SELL YOUR BOOK ON AMAZON. The month is was published, it reached #29 overall on the bestseller list on Amazon, and #2 in its category. It's nice when a book practices what it preaches.
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