With the recent news that Random House was adopting the agency pricing model for e-book sales, I started hearing the, “What does this all mean?!” question from authors again. When the switch to the agency model happened with the other “Big 5″ last year, I spent a lot of time discussing the differences between the wholesale and agency models of e-book sales. I’ve sent authors articles that explain the differences and why it matters, both practically and philosophically. But today, I came across the most succinct, lucid description I’ve seen, from former-agent Nathan Bransford. The point of the blog post is to explain why you might pay more for an e-book than for a new hardcover–something that seems insane until you understand how both e-books and print books are sold from publishers to retailers.
So please take a look! And if you have further questions, I’m happy to try to answer them.