Publishers, Weakly

What the Penguin/Random House Merger Really Means by Michael Levin

When I saw the word “synergies” applied to the proposed merger of publishing giants Penguin and Random House, I laughed out loud.   “Synergies” is Wall Street-speak for “Let’s merge two failing companies, fire half the employees, run the resulting business more cheaply, suck out all the money we can as quickly as we can, and then leave the wounded, gasping beast that is the resulting company to die a miserable, public death.”

Which is exactly why “synergies” best describes the merger of two of the biggest names in the publishing industry, which is wringing its hands over the immediate consequences of this deal, which really represents one more death rattle of the once thriving book publishing trade.

Here’s what happens now:  lots of editorial, marketing, and other jobs will vanish.   Agents will have fewer places to sell books.   Fewer books will be published.   Authors will get even less money (if that’s possible, since some publishers are paying zero advances whenever they can get away with it).   And the pontificators will pontificate on what it all means to society (not much, since most of society has already given up on reading books).

Here’s what happens next:  the remaining major publishers will find it harder to compete, because the resulting publisher (Penguin House?) will be able to produce books more cheaply.   So they’ll fire people, merge, fire more people, and eventually roll over and die.

All because publishers never figured out how to deal with the Internet and how to sell books in a wired world.   All because publishers considered themselves “special” and thought they could get away with selling products they didn’t market.   All because publishers are English majors wearing Daddy’s work clothes and pretending to be business people, running their businesses on whim and gut feeling instead of figuring out what people want and giving it to them, the way smart businesses work.

I have no pity for the fallen publishers.   In Wall Street terms, there isn’t enough lipstick in the world to make these pigs kissable.   They had the responsibility to shape society by providing it with books worth reading, to create a cultural legacy for our generation and generations to come.   And instead, what did they give us?

Ann Coulter, Navy SEALs, and Fifty Shades of Gray.

The publishers will blame everyone in sight for their predicament, but this is a self-inflicted wound; what the Brits would call an “own goal.”

You can’t run a successful business passively waiting for people (in this case, literary agents) to tell you what you should produce.   You can’t run a successful business by throwing 10,000 strands of spaghetti (or 10,000 books a year, in Random House’s case) against the wall of public opinion and seeing what sticks.   You can’t run a successful business selling information in the form of printed books by putting them on trucks to distant cities, hoping that booksellers (anyone who can fog a mirror, run a cash register and repeat the phrase, “We don’t have it but we could order it for you.”) will actively sell your stuff to people.

Bottom line:  You can’t run a successful business when you are essentially competing with yourself.   If Barnes & Noble doesn’t sell a Simon & Schuster book within three weeks, it sends the book back to Simon & Schuster, at Simon & Schuster’s expense, only to have that same space on the shelf filled with…  wait for it…  a different Simon & Schuster book.   That’s not marketing.   That’s masochism.

A New York editor who worked at Penguin once told me that his boss called all the employees into a meeting and said, “If there’s any merger talk, you’ll hear about it from me and not from The New York Times.”   A few days later, he was reading The New York Times on the subway on the way to work, and read that Penguin was merging with another publisher.   Here we go again.

If it weren’t for Fifty Shades of Gray, Random House (and Barnes & Noble, for that matter) would have been on life support.   There would have been nothing left to merge.   Penguin’s owner, Pearson LLC, is the smartest guy in the room, dumping off Penguin’s trade publishing on Bertelsmann, a German conglomerate which somehow still thinks it can make money selling books.   And now a few thousand more publishing employees are going to leave the world of books and hit the bricks.

So let the hand wringing begin.   The collapse of a once proud industry has taken a giant step backward.   And there ain’t no synergies in that.

Michael Levin is a New York Times bestselling author and Shark Tank survivor.   He runs the Business Ghost website, and is a nationally acknowledged expert on the future of book publishing.

Note:  This opinion piece represents the views of its author.   It does not represent the opinions or views of Joseph’s Reviews, and is presented in the spirit of fostering public discussion on key, important issues.

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Shiny Objects: Why We Spend Money We Don’t Have in Search of Happiness We Can’t Buy by James A. Roberts (HarperOne, $25.99, 368 pages)

“The chief value of money lies in the fact that one lives in a world in which it is overestimated.”   – H. L. Mencken

Author James A. Roberts is a professor of marketing at Baylor University in Waco, Texas.   There’s no doubt that he knows of what he writes.   In some ways Shiny Objects is similar to The Man Who Sold America by Jeffrey Cruikshank and Arthur Schultz, and Shoptimism – Why the American Consumer Will Keep on Buying No Matter What by Lee Eisenberg.   Among them, the three  books capture a wide view of the marketing tricks, human weaknesses and buying trends that are behind the urge to attain the American dream.

Shiny Objects is clearly written for readers in the USA.   Author Roberts tailors what could easily be just another self-help book into a person-centered experience complete with memorable quotes at the start of each chapter (such as the one posted above).   He includes graphs, charts, sidebars and illustrations that enliven the very serious subject – compulsive acquisition that most folks cloak in the guise of the pursuit of the Great American Dream.

There is a strong interactive presence in many chapters that gently allows the reader to respond to the questionnaires that are designed to reveal personal tendencies, proclivities or urges related to material possessions and their appearance – which is, sadly, a false one – of granting happiness.

There is some original research associated with the writing of the book as well as numerous well-annotated references, data and quotes.   Roberts also references his survey of other researchers’ research on consumption/consumerism.

The marketing classes at Baylor presented by Dr. Roberts must be very popular given his smooth conversational style and ability to weave useful strategies through his narrative.   Perhaps this book, which is highly skeptical of the marketing practices in this country, is his way of offsetting the marketing skills he teaches in his college classes.   This quote makes the point: “The primary goal of this book is to make the argument that lasting happiness lies outside the consumer realm, beyond the shiny-object ethos.”

Highly recommended.

Ruta Arellano

A review copy was provided by the publisher.   Shiny Objects was released on November 8, 2011, and is available as a Kindle Edition and Nook Book download.   “Shiny Objects is ultimately a hopeful statement about the power we each hold to redefine the pursuit of happiness.”   Amazon

Readers who find this book interesting may also want to consider Stumbling on Happiness by Daniel Gilbert (Vintage, $15.95, 336 pages) and Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt (William Morrow Paperbacks, $15.99, 315 pages).

How will your readers find you? The Findability Formula

The Findability Formula: The Easy, Non-Technical Approach to Search Engine Marketing by Heather Lutze is a book that tells business owners how to set up a successful marketing campaign.   And a successful campaign, these days, means having a website that can be found by Google and the other major search engines.

At first blush this would not seem to have much to do with writing books or even reviewing them.   However, one important lesson pointed out by Lutze is that businesses often make the mistake of focusing on the macro rather than the micro.   For example, a seller of TV sets may think it is easier to use internet ads with broad keywords (words that will be found by search engines) such as “TV seller” instead of “large screen plasma TVs.”   But the broader terms often get lost in the back pages of search engine results; and 87% of those using search engines never look past page 3 or 4 of the results!

The lesson here is that instead of thinking macro/large, it is better to think micro/small or unique.   For writers this may mean that the P.R. campaign for your new book should not sell it as THE NEXT BIG THING, or attempt to sell you as the second coming of THE BIG AUTHOR that readers already know quite well.   Besides, those references to already published big books and authors are going to get lost in the back pages of search engine results.   Who’s going to read you – and feed you – when you’re on page 64?

What does this mean for book review bloggers?   Maybe it’s fine to occasionally review a new book by a currently unknown author, one who has published his/her first novel or work of non-fiction.   If you write a review of Susan New or Joe First-Timer, your review will certainly be more easily found than the 700th review of the new book by Mr. BIG AUTHOR, who has already sold 80 million copies.   And one other thing, if you write about a BIG subject, like the biggest books written by the biggest authors, what is it that you’re going to say that is unique and that hasn’t been said by the major media publications?   The answer is, probably, not much.

Contra, if you’re an early adopter and reviewer of a new and rising author, you’re likely to build a lasting and long-term relationship with him/her and his/her publisher.   Further, it is guaranteed that every friend, family member and acquaintance of the new author is going to read your review; something quite unlikely to occur with your review of Mr. BIG AUTHOR.   (What satisfaction is there in writing the least read review of a new book?)

In summary, while The Findability Formula is a book that was intended to guide business owners rather than writers, book reviewers or bloggers, it offers everyone valuable lessons on how to use the right search engine approaches (including keywords and tags) to get people to read what you write.   It’s a guide book that’s worth purchasing unless you elect – in this age of the internet – to write for just yourself, your mother and your faithful dog.

Joseph Arellano

Reprinted and adapted from the Troy Bear blog.   Originally posted on May 21, 2009.