June 13, 2006
News & Opinion: Knocking out the gatekeepers
What's cool is that they have design templates and handle the printing, shipping and order tracking. Lulu is unlike similar functions run by Random House (Xlibris), Barnes & Noble (iUniverse) and Amazon (BookSurge) which require authors to pay "an up-front fee of $300 to $1600, [and where] book prices are set by the services, and royalties range from 10 to 25 percent"; Lulu, on the other hand, doesn't charge anything for layout and design. Authors pay Lulu only when a book is sold and their royalties are 80% (minus Lulu's production price).
Today Lulu is doing $1 million in business every month with book sales around 36,000 - 91,000. Get this, there are a thousand new books on the site every week!
So what is the reaction in the publishing world? The founder, Bob Young says that some ask him to sell his software. And some say what Lulu publishes is not worth their time. But it leads me and the article's author to wonder what will happen if Lulu becomes a major hit? It has potential to change the publishing industry indefinitely.
*Taken from the June '06 Business 2.0 article Freedom of the Press.
About Dylan Schleicher
Dylan Schleicher has been a part of the 800-CEO-READ claque since 2003. Even though he's stayed on at the company, he has not stayed put. After beginning in shipping & receiving, he joined customer service and accounting before moving into his current, highly elliptical orbit of duties overseeing the ChangeThis and In the Books websites, the company's annual review of books and in-house design. He lives with his wife and two children in the Washington Heights neighborhood on Milwaukee's West Side.