P&Ls and how books make (or don't) money

[alg]

Profit & Loss/Profitability & Liability: How Books Make (or Don't Make!) Money

A basic outline of what happens when an editor buys a book and wants to publish it. This is very much a basic look at publishing and publishing finance, with some explanation of terms commonly used by the marketing and sales departments.

Comments

Re: Now I understand

[sarahmccarty.livejournal.com]

LOL!! Well, I had to go through it four times and it might be more accurate to say I'm assuming I understand it now. But I totally understand why my formula didn't work.:-)

Re: Now I understand

[alg.livejournal.com]

Well, listen, I have done this about a million times -- okay, realistically? I have done it at least a few hundred. Seriously. And I am still learning new bits and pieces. So expect to always have something new come out! THis is bare bones stuff -- the real P&L is a lot more complex.

Re: Now I understand

[sarahmccarty.livejournal.com]

You know, I can easily see where trying to "nail" this formula could become a personal challenge to someone having to deal with it daily. I'm not in this end of the business and I've already played a "what if " scenario with it. ;-)

Re: Now I understand

[alicebentley]

I would avoid spending lots of time finalizing a formula (unless you really like playing What If) because not only do the variables change for every single book, the industry influences that affect everything are also in flux.

Makes for all sorts of fun.

Re: Now I understand

[sarahmccarty.livejournal.com]

I know, but that's the hook. With so many variables, it could almost be a mental sport. Or the next mind game to sweep the nation....