Tag Archives: Business

SILICON VALLEY: WHAT IT TAKES TO DO STARTUPS – Book Review

Here’s another one of my articles published today on Impakter:



SILICON VALLEY: WHAT IT TAKES TO DO STARTUPS

Book Review: Chaos Monkeys: Obscene Fortune and Random Failure in Silicon Valley by Antonio Garcìa Martinez (HarperCollins, 2016, 528 pages)

Chaos Monkeys Book Cover

Silicon Valley continues to be hot news in the age of Trump and anti-globalization and it should come as no surprise that a clever book about it by someone in the know, loaded with revelatory insights on how it really works, was going to be a sure-fire hit. And that is exactly what happened when Antonio García Martinez’s half memoir-half prescriptive tech guidebook came out last year on 28 June 2016, becoming an instant “New York Times bestseller”. Considered an “irreverent exposé of life inside the tech bubble”, all the major book reviewers rushed in with praise, from the New York Times’ Jonathan E. Knee (“an irresistible and indispensable 360-degree guide to the new technology establishment”) to Bloomberg’s Ellen Huet (“dives into the unburnished, day-to-day realities: the frantic pivots, the enthusiastic ass-kissing, the excruciating internal politics”).

In short, in just six months, “Chaos Monkeys” has become the most popular and widely read book about Silicon Valley. I was curious to find out whether it merited its sudden glory. I uploaded it to my Kindle (disclosure: living far from bookstores, I am a fan of e-books) and I spent a couple of pleasant days enjoying the read. And I soon discovered that the best passages, literally pearls in the text, had been highlighted hundreds of time by enthusiastic fans. In fact, Amazon in its “about the book” section informs you that (at the time of my reading) 3,769 passages had been highlighted 122,000 times (ah, the joys of Big Data).

It is a clever book with a clever title, and a great read. In case you’re wondering about the title, it comes from the name given to the software procedure used to test the stability and resilience of online services/websites – and this neatly expresses the main message of the book: That tech entrepreneurs are society’s chaos monkeys, out to disrupt the way we live, from photo-sharing (Instagram), dating (Tinder) and movie viewing (Netflix) to transport (Uber), lodging (AirBnB) and space travel (SpaceX).

Unquestionably, the author’s persona was as much part of the excitement as his bracing writing style. Described as an “industry provocateur” on his Amazon book description page, he has lived up to his reputation and become something of an industry guru: today, whenever big news or scandals roil Silicon Valley, journalists rush to ask him his opinion.

 

Garcìa Martinez started his working life as a strategist for Goldman Sachs, survived three years and surprised everyone by abandoning New York for the West Coast. After learning the ropes at an IT advertising outfit called Adchemy, he launched his own start-up AdGrok with a couple of engineering pals (called “the boys” in his book). Ten months later, after raising some venture capital and before even making AdGrok operational, he sold it to Twitter for $5 million. However, it was not an unmitigated success; his team broke up, “the boys” went to work for Twitter to develop AdGrok while he accepted a more lucrative position at Facebook as product manager. Tasked with leveraging Facebook’s user data to make its advertising more effective and fix its monetization problem, he was outcompeted by a colleague and fired – the circumstances of his firing make for fascinating reading.

The description of what Facebook is like, what happened there and why he eventually left and landed an advisory position at Twitter is certainly one of the more interesting parts of the book – anyone thinking of joining Facebook should read it very carefully, drawing lessons from it.

The rest on Impakter, to read it, click here.

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Filed under Book review, Digital Revolution, Publishing, Startups, Tech, Uncategorized

Is Traditional Publishing Headed for a Smash-up?

Smash

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Dear Readers,

Some of you may know me from my site on blogspot.com and I’ll try to keep you posted on both sites, with comments on politics, books, art (everything I like) and economics (everything I dislike!) – in short, our world as I see it. But since this is just a bunch of personal opinions, you’re most welcome to shoot them down!

I love a rousing discussion!

Here is my take on what is happening to the publishing world as it has to face (and survive) the tsunami of the digital revolution…If you disagree, please make comments!

The sales of e-books have outpaced printed books for the first time this year at Amazon, the number one on line bookseller in the world. People are talking about the digital revolution being something as big, nay, BIGGER than Gutenberg’s invention of the printing press around 1440.  We’re into a new age, the possibilities are infinite, everything will change!

Does that mean that the printed book is dead and that traditional publishers are on their way out?

No, I don’t believe so. I am convinced the future of publishing is anything but bleak! By the way, I’m looking at it as an economist and political analyst – not as an aspiring fiction writer (which I also happen to be, but that’s incidental – for that matter, I’m also a painter – which has nothing to do with the argument at hand…).  I just wanted to point out that I’m trying to evaluate the situation in a detached, scientific way (hum, gasp, cough).

The first thing to realize is that e-books are NOT going to eat into the current market. The pie, with the advent of digital titles, will expand. E-books will add to the book market in general, bringing in lots of new readers – people who after a first jolly experience on their i-pad or kindle will go on to buy paper books for the first time in their lives! And remember, digital editions are forever. They’re not like printed books, sitting on your local bookstores shelves for a few weeks and then gone. E-books are FOREVER! Which means they are accessible, ready to be downloaded on your e-reader anytime. You don’t have to go to the book store to order and then wait for the book to be sent by mail. No, e-books are just a click away!

Second, as with any BIG change in an industry’s parameters, expect a wave of bankruptcies and consolidations. The biggest bookstore in the US, Borders, has gone into receivership which means, inter alia, that traditional publishers have lost miles of physical shelf space for their books. Talk of a tsunami! You can expect that over the next few years, even the Big 6 (the main American publishers) will have to reconsider their marketing strategies, their costs and do everything they can to ensure their survival – perhaps even move out (gasp!) of Manhattan! And expect some to go under. That may not be fun for those involved, but it’s physiological. When structural change comes to an industry, only the fittest survive.

Bookstores, however, are at this moment taking the brunt of the storm (as shown by Borders). They need to react ASAP and become more imaginative to turn themselves into welcoming places, like Starbucks and provide coffee to attract clients or organize conferences and local contests to engage the community. There are a number of bookstores of that sort in Europe, places that straddle the Internet and offer a haven to the local community, and they seem to prosper.  Advisory services could also be provided to their clients, things like advice on e-readers, the best apps, and help them locate interesting stuff to read on Internet – that is, turn themselves into “gatekeepers” of sorts, to guide people in the jungle of e-books.

Because it’s fast becoming a jungle: there are lots and lots of titles out there. If you look at the top 100 best-selling titles on Kindle, you’ll be amazed at the BIG proportion of self-published books – I didn’t count, but at a glance, it’s much more than half! To find “good” authors (in the sense of “good read”) is becoming a well-nigh impossible enterprise. I know because I do that repeatedly for my mother who’s 97 and an avid reader (she loves her Kindle). You get the feeling that the famous “slush pile”, all those manuscripts rejected by publishers and literary agents as “unfit to print”, all of them are suddenly on sale. And, perhaps more surprisingly, they are finding customers! Yes, people do buy these books! Sure, they’re priced at $O.99 so that’s probably why people buy them. But the more successful e-authors who started at that price, have found they could jack up their price to $2.99 and more (but always well under the $9.90 borderline established by traditional publishers) and still make money…in spite of the lack of editing, poor plot structure and typos… Which goes to show that a good yarn sells more easily than “literature”.

That may be a depressing thought for some but it’s definitely a golden opportunity for others: with the expansion of the book market, a lot of “unsophisticated” first-time readers have been drawn in, and they’re the sort of people who enjoy a good story and don’t care too much about how it’s told.

This means that one of the traditional roles of publishers of printed books, i.e. being “gatekeepers” to ensure a “minimum” level of “quality”, has been seriously weakened and others could jump in the void. Magazines and papers and blogs with a big following that review books are doing that job now, but why not bookstores? And the big bookstore chains could consider providing print-on-demand services for all things digital. Indeed, that’s where the real competition for printed books might yet come from…

To sum up: with the digital revolution, everybody’s role is changing, and it’s not just bookstores that have to rethink themselves. Publishers also need to reconsider their role. They often give the impression of being on the defensive as they progressively tighten their contracts with writers and lower advances. Six-digit figures are a rarity nowadays. Publishers even cut advances up in 4 parts, meant to follow the different stages in the publishing process, and that means you  get only 1/4th of your “advance” upon signing the contract.  Sure, this is a tough business, they try to get the most out of every deal. But writers are publishers’ natural allies: writing is the source of their business. So publishers need to realize that if they stop scraping authors naked, and instead treat them right, they will make of them faithful allies. I am willing to bet that the first publishers who realize this will see their prospects turn for the better real fast. And the first thing they should consider doing is giving authors a better deal on e-book royalties and making a better job of providing supportive book marketing. Because in this Internet age, the buzz word is king, and authors, through such important blogs as Writer Beware learn real soon who are the publishers to avoid…

Because e-rights are forever and more and more writers are realizing this. And more and more are unwilling to give up returns on their books forever  when all the publishers have done is a one-time investment in them. After all, the money you have to put up front to get yourself e-published is relatively small – just about anyone can afford to do it. Of course, not everyone has the necessary on line presence and the desire to spend all that time into marketing one’s book.

Most writers would still prefer to spend most of their time writing…

So there’s a glimmer of hope for traditional or “legacy publishers”. There will be more Amanda Hockings who after establishing themselves as self-published wonders (she made one million dollars in her first year of digital self-publishing), will be coming back into their fold. And there will be probably fewer Barry Eisler walking away from them. Remember him? He is that feisty writer who refused a $ 500,000 advance from St.Martin’s Press for two books. But then, on closer examination, it wasn’t really such a good deal: $250,000 per book minus the 15% going to his agent, plus the fact that he’d get next to nothing for his e-rights. And, remember, e-rights are forever!

The real challenge for legacy publishers will be the midlist authors who can make a big buck turning their back list into e-books. Joe Konrath‘s success is an example for all midlist writers. Publishers will just have to figure out a way to get into that juicy market – and they won’t get into it unless they bend their position on e-rights. They want too much for far too long. They really should consider another model, for example putting a time frame on e-rights and allow authors to regain them after, say, 5 years, but – and that’s an important “but” – with a renewal clause for another 5 years on condition that the publisher agrees to engage in some additional marketing. That would encourage writers to sign up with them rather than go the self-publishing e-route.

AND they need to provide a service of value to the authors, in particular marketing support (that’s something writers normally don’t like to do: if you’re a writer, let’s face it, you’re an introvert, you really don’t have a salesman personality…) Publishers could easily make sure their authors get reviews, and not any kind of reviews, but good ones from respected reviewers with a known and proven following.

And they could consider doing something else too, something no one talks about much because it’s scary: I’m referring to piracy. Yes, publishers could try and provide more effective means to fight off piracy. Individual authors are not well-placed to defend themselves and few are internet-savvy. To fight off piracy requires experts. Pirates – I mean hackers – are getting better all the time and a lot of people out there, a writer’s regular readers, don’t even think that downloading a book for free is a form of criminal offense. The author has sweated over writing his book and deserves a fair $ return for his pains. Let’s face it, pirate are pirates and should be jailed. Now, in the digital world, that’s hard to do and it requires huge means to properly police the Internet. And it means publishers and e-book sellers will have to work together.

Because, let’s face it, the biggest danger the digital revolution brings to the publishing industry is PIRACY! It might yet bring together everybody: Amazon.com, traditional bookstores, e-book platforms and publishers, both those into “legacy” publishing and e-books, for the greater good of authors and their readers…But then I’m an incorrigible optimist!


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