The Business of Writing

First, You Have to Write the Damned Thing.

4 May 2019

From Medium:

I have a strategy for blogging that involves checking out Quora to see what questions people are asking.

I checked Quora this morning and saw this.

Good answer, Orson Scott Card. Good answer.

. . . .

It’s not even a chicken and an egg thing. You cannot publish what you haven’t written.

You can publish what you haven’t edited. You can publish what you haven’t tried to sell to a traditional publisher. You can publish long. You can publish short. You can publish poetry, blog posts, picture books, and 500,000-word tomes that would make literary agents insta-delete your query letter.

You can publish late — long after you should have just shipped that thing.

You can publish early — before your work is polished well enough to avoid being ripped apart in Amazon reviews.

You can publish pretty much anything.

But you cannot publish it until you’ve finished writing it.

. . . .

Let me say that another way. You cannot build a literary career out of files on your hard drive that you never let anyone read. Or out of half-finished stories that get abandoned every time a shiny new idea bites you in the ass. Or out of completed novels that you never feel are good enough for public consumption.

. . . .

If your goal is traditional publishing, then this isn’t actually a simple yes or no question. Being published is out of your hands. Or it will be, once you get brave enough to put your work out there into the hands that can get it done.

You’ll need to write a query letter and send it out to literary agents. Not one or two. Not a carefully selected list of ten. Once you know your letter is doing it’s job (it’s only job is to get an agent to request your work), then send that sucker out wide. To everyone.

Last summer I needed a new agent. Once my query letter was bringing in a ten percent positive response (one in ten agents asked to read the manuscript,) I sent it to more than 140 agents. I had seven offers to represent me. Which is mind-blowingly awesome. For a couple of weeks there, I felt like one of those movies that’s up for all the Academy Awards or something.

But the hard truth is that I had more than 130 rejections, too. I was getting rejections after the agent I went with sold my book.

. . . .

If you’re planning to go indie then you are the publisher. Publishing is 100% up to you. Which means you have the responsibility of creating the most professional work you can. It’s your job to hire an editor and a cover artist. It’s your job to position your book in the market place.

Link to the rest at Medium

When PG read the OP, he wondered how much time the author spent selecting 140 agents, preparing at least semi-personalized packages for each and reviewing responses which, hopefully, involved careful vetting of the agents who were interested in seeing her manuscript.

PG has received more than one agent horror story recently, so he’s particularly sensitive to that potential problem. Without going into detail, agents and literary agencies can and do change over time. An excellent agent from ten years ago can be a far less than satisfactory agent today. If the agent is receiving checks that include money the agent should be promptly forwarding to the author, “less than satisfactory” can make the author’s life extremely difficult.

Not Just Self-Published

4 April 2019
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From Joy E. Rancatore:

More than once or twice, I’ve heard an author apologize, “I’m just self-published.” That phrase hurts my heart. Why? Because what I hear beneath their choice of words and tone is something I want them to hear:

“I wrote something straight from my heart that I believed in so much, I backed it with my time, energy and money so other readers could believe in it, too.”

. . . .

1. Wash that just right out with a shot of confidence.

Before I dive in here, please take extra note that I wrote confidence. I did not write pride or hubris or boasting.

Now that we’ve got that clear, you are just as much an author with your one book that you published as an author who’s been published countless times by one of the Big 5.

You plotted and outlined—or pantsed—your way to a first draft where you went beginning to end (or zigzaggy) until you had a completed story baby.

Then you revised, rewrote, edited, rewrote, got help and feedback and critiques and outside—hopefully professional—edits and rewrote again until your book shone as bright as any polished diamond.

Whatever your reason, you chose to put your money behind your dream and publish your own book. You’re kind of a rock star, my friend!

. . . .

2. Chase it down with a slow drink of professionalism.

I’ve got to give you a note before we tumble down a cliff on this one, too. You may not have done this on your book—or your first five, depending on where you are in your journey. And, that’s OKAY. Reread that last sentence until it completely settles in your soul, because your commitment to fulfill your dream is what makes you the author I declared you to be in the first point.

Sure, there are still a few pockets of folks who look down long noses over horn-rimmed glasses at anyone not traditionally published, but they are few and far between and transitioning to the land of the dodo bird.

Chin up, writer friend, and let’s make ourselves better than we were yesterday! How do we do this? I’m so glad you asked!

You’ve got your shot of confidence warming your resolve, so now it’s time for some slow sipping. I have to add here that some folks sip slower than others and that is just fine.

Don’t compare your rate of progress to someone else’s. The only person you should ever compare yourself to is yesterday’s you.

Link to the rest at Joy E. Rancatore

How to Differentiate Your Startup in a Red Ocean Industry

27 March 2019
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The OP is about tech startups, but PG was interested to see the parallels between authors in the indie book business who are working to stand out from the crowd of competitors and startups in the tech businesses.

From ReadWrite:

We all dream of coming up with the next ingenious idea that redefines [an] industry, or creates one from scratch. (PG note: Industry could also mean a genre or sub-genre)

. . . .

[B]lue ocean opportunities, as defined by the popular book Blue Ocean Strategy by professors W. Chan Kim and Renee Mauborgne. In case you aren’t familiar, they posit that there are two types of market opportunities when you create a startup from scratch.

There are red oceans, which are filled with blood from fierce competition. These oceans, representing mature industries in a free market, are incredibly difficult to enter—at least without paying a price, either in more aggressive marketing and advertising costs or by settling for a smaller market share.

Blue oceans, by contrast, are all but free from competition, giving you more flexibility, lower costs, and domination over nearly 100 percent of the market share.

. . . .

The Truth About “Red Oceans”

If we’re following the ocean analogy here, then we need to address the true nature of the competition. These red waters aren’t uniformly infested, nor are they infested in every corner. Instead, there are pockets of blue ocean to be found within those red oceans. In more literal terms, even mature industries, filled to the brim with competition, have untapped market segments and new opportunities for those willing to look.

For example:

Specific product features. The product itself may not change, but you can certainly add something to it. New product features may be enough to differentiate the product, and enter a world free from competition, even within a competitive industry. For example, the fast food industry is currently saturated with burger joints, but McDonald’s has introduced and maintained the Big Mac, a unique burger that can’t be replicated without violating copyright laws; if you want this specific taste, you can’t simply go somewhere else.

Target demographics. You can also target a different demographic, or capitalize on consumer preferences that aren’t being met by the leading competitors. For example, in the past few years, Dollar Shave Club practically took over the subscription razor industry, and giants like Bic and Gillette quickly followed suit. Yet in the razor battle, Shave.net was able to enter the mature shaving industry and make a name for itself by focusing on the smaller niche of wet shavers who prefer straight razors and safety razors.

Price points. One of the more obvious points of differentiation is price. If all your competitors are selling something around the same price, you could easily capitalize on their existing audience, or target a new audience by offering it cheaper. You could also capitalize on a luxury market by charging more (assuming you can offer a higher-quality product).

. . . .

Peripheral services. It’s also possible to stand apart from the competition by offering services that aren’t available from mainstream competitors. For example, the Home Depot initially stood out as a competitor to traditional lumber yards because they offered a wider variety of products in one location, as well as classes to help DIYers.

. . . .

The Role of Brand Differentiation

The secret to finding success in a mature industry is twofold; first, you need to find a way to differentiate yourself, and second, you need to make that differential element evident to the people you’re trying to persuade. That often means adjusting your brand values, your core products, or your overall marketing strategy for these key benefits:

Competition reduction. Pursuing a path of your own instantly reduces the number and ferocity of competitors you’ll face. Fewer competitors means you won’t have to worry about someone else poaching customers from you, and you’ll probably spend less on marketing and advertising.

Increased visibility. Being different immediately helps you stand out. Capitalizing on what makes you different from the major players in a mature industry is a strategy certain to attract attention naturally, aiding you in your marketing and advertising efforts.

Niche exploration. Exploring a specific niche within the mature industry can help you cultivate and nurture a sub-industry. The more you learn about these customers and the more you cater to them, the more loyal they’ll become—especially if they never had an options like yours before.

. . . .

Define your differentiators (or make new ones). The most obvious answer here is to play up what makes you different in your advertising strategy. A simple message, like “sick of paying high prices for ____?” can be a good start (though you’ll want something a little more original). Are you cheaper? Higher-quality? More convenient? Targeted to someone different? Make this clear in your ads from the get-go, and try to include at least one brand element that encapsulates this, like a company name or tagline.

Leverage untapped channels and outlets. There are invariably marketing and advertising strategies that your main competitors aren’t currently using. That could be because the strategies are new and unfamiliar, or because these channels haven’t historically worked for the industry. But because your company is different, it may be able to leverage these channels more efficiently. For example, if your competitors are all over Facebook but you’re differentiating yourself by targeting a more professional, older audience, you could turn to LinkedIn for your needs.

Exploit key differences. Chances are, what makes you different from your existing competitors is a pain point for their current audience. You can use this to your advantage by portraying these unpleasant experiences or perceptions.

. . . .

Piggyback on existing brand value. As long as you aren’t lying about your competitors, you can mention them directly in your marketing and advertising campaigns, as a way to capitalize on the brand value they’ve already established. You can do this with a side-by-side comparison, or with a catchy tagline, such as “like COMPETITOR, but ________.”

Link to the rest at ReadWrite

Patreon Introduces New Tiers for Creators. Can It Avoid Another “Fiasco”?

19 March 2019

From Fast Company:

In 2017, Patreon rolled out a new fee structure. Today’s it’s known internally at the company as “the fiasco.” A revolt from creators and patrons prompted it to retreat almost immediately.

Today, Patreon, which is valued at a reported $450 million, is trying again. It is announcing Patreon Lite, Pro, and Premium as a means to tailor fit its services to the needs of the platforms’ 100,000-plus creators. “We wanted to make sure and do right by the creator base that’s been with us for all these years,” says Wyatt Jenkins, SVP of product at Patreon. “I’ll talk to a painter with 50 patrons and then later in the afternoon, I’ll talk to a media company with 25 employees that makes over $1 million a year. So it’s pretty clear that [Patreon is] not one product anymore.”

Every creator with an existing Patreon account will automatically be grandfathered into the Pro tier with no changes being made to their account. Essentially, this new system is giving creators the option to pare down with Lite (which is meant to be the easiest onboarding option for creators who just want a page with no tiered benefits for patrons) or upgrade with Premium (which charges an additional $300 per month charge in exchange for services like team accounts and a dedicated partner manager). Patreon’s cut–5% in Pro and 9% in Premium, respectively–will also be locked in for existing accounts but will increase to 8% and 12% for new ones created after these membership plans officially launch in May.

. . . .

In addition to the tiered membership, Patreon also announced changes to its processing fee structures: Pledges over $3 will be charged 2.9% plus 30¢ per payment. Anything below $3 will be charged 5% plus 10¢ per payment–the latter being a direct response to 2017’s “fiasco.”

Patreon’s 2017 changes to its fee structure were met with instant backlash because the processing fee was heaped onto the patrons instead of being taken out of the creator’s account (with no ability to opt in or opt out). In addition, the proposed fee of 2.9% plus 35¢ disproportionately affected anyone pledging between $1 and $3. As TPR Jones accurately summed it up in his tweet at the time: “Pledging $100 to one creator will now cost $103.25, which is reasonable. Pledging $1 each to 100 creators will now cost $138, which is not reasonable.”

. . . .

“Creators don’t want somebody in between them and their fans,” says Jenkins. “What I learned and what Jack learned and the way we’re doing this new rollout out is the business relationship is between us and creators. We are a membership platform that empowers a strong relationship between creators and their fans.”

. . . .

The primary complaint comes down to a lack of flexibility in even this three-tiered offering. Qaadir Howard started his Patreon account about two years ago in response to YouTube’s exorbitant cuts in their payouts and its demonetization of non-family-friendly content. In reviewing Patreon’s new offerings, Howard isn’t particularly moved to upgrade his account to Premium, even though he, like many other creators, could benefit greatly from the services offered with it.

“I don’t know if I’d be willing to pay $300 for it–that’s a car note,” Howard says. “I think they should have it where it’s more à la carte: Let me pay for the thing that I want instead of it just being a flat $300, and maybe I need only one thing.”

Link to the rest at Fast Company

Priorities

3 March 2019

From Kristine Kathryn Rusch:

I write a lot. I always have. When I was in college, I wrote essays instead of taking tests, wrote fiction, and worked as a freelance nonfiction writer. I also worked in the news department of a listener-sponsored radio station, where we reported and wrote a half-hour newscast. I did that twice a week on top of everything else.

Nowadays, I write books, nonfiction, and short stories. I don’t have a target weekly word count, but I do put in time, almost daily. I’m generally disappointed if I get only 1,000 words in a day, and super pleased if I get over 5,000.

Remember, I only count new words, not rewrites or anything else. All of that happens at other times, not during my writing time.

My writing has been the constant in my life. I took writing classes in college, not to learn from the instructors (most of whom had less success than I did even then) but because I needed to block out time for writing in my busy life, and I knew myself well enough to understand that if I was writing for a class, I would block out time every week.

Mind games. Writing is all about mind games and understanding yourself.

Even though I don’t understand myself as well as I think I do.

For years, I would say that I get so much writing done because I have no life. Turns out that was true. Due to the constrained circumstances I lived in on the Oregon Coast, I had no life—or very little of one. I couldn’t go out to movies or dinner with friends; I had no opportunity to see concerts or plays; I couldn’t take in-person continuing education classes; and I couldn’t make the one to two hour one-way drive that would take me to the bigger cities, because I couldn’t guarantee I would make the ride home.

I had the time to write—when I was healthy, which was rare. So I learned how to write while ill.

The key, for me, turned out to be a structure I didn’t have to think about. I knew what I needed to do—not in the deadline sense, but in the daily sense. It took me a long time to form that structure, but once I had it, I could function inside it almost instinctively. When my circumstances changed due to our move to Las Vegas in 2018, it took me weeks to realize that I had demolished my structure when I changed locations. I had to rebuild from scratch.

Rebuilding forced me to reexamine my priorities. I can’t build a structure until I know what I put first, second, and third in my life. So, priorities before scheduling—or I’ll blow everything up and get nothing done.

. . . .

I was irritated to learn that exercise made me feel better. All those studies that say eating right and exercising will improve your health and mood? Those damn things are right. I wish they weren’t, to be honest. It would be easier to sit on my butt and eat lots of bad-for-me stuff. But when I do that, I feel much, much worse.

So eating right and exercising makes me feel better. The other bonus is that I sleep better. (Yeah, also irritating.) And the third bonus? I have more energy. Even as my health declined, my energy level remained consistent because of my commitment to exercise.

. . . .

Sometimes, when I was really really sick, I had a word count quota. Or an hours-at-the-desk quota. I try not to work with quotas, though, because I love to write. What’s the point of doing it otherwise? All of my efforts are aimed at keeping the writing fun.

Except…I would rather be reading.

So, I have learned the hard way that reading is a reward for a good day’s writing. The same with any other kind of story I could consume. No TV shows until I’ve written; no movie until I’ve written; no games until I’ve written.

Sometimes I’ll stumble around my condo or my neighborhood, grumping aloud at myself: You’re not writing, are you? Shouldn’t you be writing? And if I’m not tending to my health or doing something for my relationship with Dean, that complaint is a valid one. And one I need to listen to.

Sure, I would rather read a book or sometimes, I’d rather clean the cat boxes than write. Especially if some project is going slowly.

Email isn’t writing. Research isn’t writing. Rewriting isn’t writing. Only new words is writing.

Remembering that has made me prolific, even with all the health problems.

Link to the rest at Kristine Kathryn Rusch

Here’s a link to Kris Rusch’s books. If you like the thoughts Kris shares, you can show your appreciation by checking out her books.

Hack of Email Provider Destroys Servers and Two Decades of Data

21 February 2019

From LexBlog:

We predicted last year that hackers would become more malicious in the future, not only stealing and selling data for nefarious purposes, but actually destroying data and even systems. That reality hit email provider VFEmail last week, and on February 12, founder Rick Romero tweeted “Yes, @VFEmail is effectively gone. It will likely not return. I never thought anyone would care about my labor of love so much that they would want to completely and thoroughly destroy it.” The tweet went out after he watched the intruder reformat the hard drives of his email service, which has been in existence since 2001. The intrusion wiped out two decades of data. This is a tragic story.

Link to the rest at LexBlog

You may not need to keep the meandering emails about the old days from Uncle Fudd that make their way into your inbox all too frequently, but, if you’re a professional writer, you probably have some business emails sitting there as well.

PG has used Thunderbird as his email software almost forever. After reading the OP, he backed up his important emails to a couple of different locations using Thunderbird’s export function.

He’s also going to try a couple of third-party email backup solutions as well.

One of the practices that make PG’s backup job easier is that he has Thunderbird set to route important emails to some specific folders, so he knows where to go to find good files to backup. He also uses different email addresses for different purposes. (Thunderbird can handle multiple email accounts without any problems.)

For example, if you’re wandering around online and sign up for some update service you’ve never seen before, until you learn whether the updates are going to be really useful for you, you might want to use an email address that is just for those online sites that haven’t yet demonstrated they won’t fill your inbox with junk.

The last time PG checked, Gmail and Outlook.com were still providing free email services. You won’t be able to get bob@gmail.com because that was gone a long time ago, but when PG just checked, bobthehackwriter@gmail.com was available. He has 3-4 Gmail accounts he uses for different purposes. If you don’t want to check 10 separate email boxes all day, you can set most email services to automatically forward any incoming emails to another address, so all your separate email addresses funnel into a single place.

If you have multiple emails, it’s not a good idea to use the same password on each one. (Ditto for almost everything else you do online). To keep the various id/passwords straight, Windows will offer to save them, but PG prefers LastPass, which offers a free version that works just fine. He has also heard great things about 1Password. If you use more than one computer or a computer and a smartphone, a password manager like LastPass syncs all the passwords you store in it to your LastPass account wherever you install LastPass. When you trash the old computer and get a new one, LastPass will bring all your passwords and other secret stuff to the new computer as soon as you install it.

For client emails, in addition to the mass email exports to backup locations, PG often simply prints important client emails to PDF, then stores the email in the appropriate client file folder. It’s much easier to do a quick check of emails that way than to dig through a giant email archive. His client files are backed up seven ways from Sunday, locally and remotely.

PG invites one and all to post comments with their backup solutions for important emails in the comments.

Nine Lessons from a Small Indie Publisher

13 February 2019

From Publishing Perspectives:

Last October here at Publishing Perspectives, I wrote about starting my new publishing house—actually more like a publishing room—Mensch Publishing.

I promised/threatened an update when its first book hit the streets, and February 7 saw the release of Guy Kennaway’s affectionate, funny, and important story of his mother’s desire to end her own life. Time To Go will be available around the world in English, in print, in ebook, and in audio formats.

What, if anything, have I learned? Perhaps nine lessons to follow up a Christmas theme.

Lesson 1. Finding the right book is by far the most important thing, but getting the small things right is vital and unbelievably hard work.

Lesson 2. Being a small (tiny) independent publisher is liberating in its avoidance of group think and corporate bureaucracy but challenging in its complexity. I have more than 1,000 emails in my files all for one book and that’s computed after I’ve assiduously deleted the several thousand I was copied into for no reason.

Lesson 3. Treat your suppliers with respect. I’ve taken a policy decision to pay cash owed into a freelancer’s account the same day I receive the invoice. My cash flow is important but respecting other people’s cash flow generates goodwill, and better relationships are vital for a small enterprise—perhaps for big enterprises too.

Lesson 4. Everything costs more than estimated, and income is always less. Those who see publishers, large or small, as greedy monsters making large profits should try it for themselves.

. . . .

Lesson 8. Managing a site. Tweeting. Communicating with authors, agents, sales, distribution, rights, design, production, finance, agents. Setting up accounts with Publishers Licensing Society. With Nielsen. All take time, obsession, attention to detail and all are essential.

Link to the rest at Publishing Perspectives

When PG read the OP, he was curious about whether a publisher with a single employee (the author of the OP) used the same types of contracts and paid royalties at the same rate a much larger publisher would. PG notes from the book’s Amazon listing that the one-person publisher is pricing the book at the same level a major international publishing house would.

The Beginning of the End for Patreon

9 February 2019

From The Digital Reader:

There comes a time in the life of many companies when the owners (or investors, or vulture stockholders) decide that they want to extract more profit than is healthy for the company to survive. This is one of the things killing American newspapers, and it’s even impacting B&N, and now it’s about to kill Patreon.

Patreon is fairly healthy, but apparently not profitable enough for its capital investors.

From CNBC:

The number of active patrons supporting artists on the platform in 2019 has seen significant growth, up 1 million over the last year, the company said. The company is also on track to pay out $500 million to content creators in 2019, pushing the company to surpass $1 billion in payouts since its inception in 2013.

Under the company’s current business model, 90 percent of funds are paid directly to content creators. Patreon takes 5 percent, and the remaining 5 percent covers transaction fees.

Patreon CEO Jack Conte said in an interview with CNBC that the platform will soon be facing the challenge of maintaining a profitable model as the company continues its growth.

“The reality is Patreon needs to build new businesses and new services and new revenue lines in order to build a sustainable business,” Conte said.

The company does not currently provide contracts, which allows users to retain 100 percent ownership of their work and full control of their brand.

The company plans to provide creators with new “value services,” like options for merchandising, to generate new revenue. Creators will be given the opportunity to participate in these services, and it could ultimately reduce Patreon’s generous 90 percent pay-out model.

What this means is that Patreon’s investors want the company to be more profitable, and if necessary they’re going to force the company to pay its users less.

. . . .

I do not currently use Patreon; I closed my account when they tried to jack up costs in late 2017. But I had been thinking about going back to Patreon in order to fund the blog through donations and pledges.

Now I think I’ll just still with Paypal (not exactly a nice company either, but beggars can’t be choosers).

The thing about Patreon not being profitable enough is that Paypal has a very similar model and they turn a profit on a smaller cut of the funds they transfer. Paypal only collects payment processing fees (the 5% transaction fees mentioned above) and yet Paypal is so profitable that they spun off Ebay as not being worth the hassle.

Of course, Paypal had a unique advantage when they were starting out; they were acquired by Ebay, which then forced buyers and sellers to use the service (when you’re growing your business, there’s nothing like having a captive audience who can’t say no).

. . . .

Folks, Patreon’s attempts to increase its profitability are doomed not because this is going to drive away users but because their niche is too damn small. Patreon only handles one small segment of payment processing (what are essentially charitable fundraising campaigns); in comparison, Paypal covers dozens of segments.

Link to the rest at The Digital Reader

PG suggests that, unless an internet-based business has some sort of moat around it (patents, must-have technology, unique voices or expertise, etc.), raising prices is very difficult because someone else is always ready to clone the business plan and offer the service for less.

PG is only passingly familiar with Patreon, but is not aware of any patents or similar limits to those who might build a similar platform for the same purposes – providing an online means for people to help fund various creative endeavors.

However, while PG was looking at Patreon’s Terms of Use to see if there were any mentions of patents, trade secrets, etc., he did find a rights grab that may be troubling to authors and other creators:

You keep full ownership of all content that you post on Patreon, but to operate we need licenses from you.

By posting content to Patreon you grant us a royalty-free, perpetual, irrevocable, non-exclusive, sublicensable, worldwide license to use, reproduce, distribute, perform, publicly display or prepare derivative works of your content. The purpose of this license is to allow us to operate Patreon, promote Patreon and promote your content on Patreon. We are not trying to steal your content or use it in an exploitative way.

You may not post content that infringes on others’ intellectual property or proprietary rights.

Patrons may not use content posted by creators in any way not authorized by the creator.

On the front page of Patreon’s site, the company makes a representation that some might construe as conflicting with the quoted portion of the Terms of Use:

You own your content

There are no contracts to sign and you retain 100% ownership of your work. You made it, not us.

Under Patreon’s equivalent to an FAQ, the following is a question and answer about ownership of creative works:

Wait, does Patreon own my content?

Nope! Your content is 100% yours, unless a record label or studio owns part of it, in which case it’s partly theirs too, but it’s definitely not Patreon’s — not even a little.

PG suggests that Patreon’s Terms of Use are, in fact, a contract between Patreon and its creators. It is a “click-to-accept” contract with an electronic signature by the creator which is not physically “signed”, but is still enforceable by Patreon against the content creator.

In the United States, the Electronic Signatures in Global and National Commerce Act (15 U.S. Code Chapter 96) explicitly authorizes electronic signatures in interstate commerce and makes electronically-signed contracts enforceable. Here are the first paragraphs of the law:

(a) In general Notwithstanding any statute, regulation, or other rule of law (other than this subchapter and subchapter II), with respect to any transaction in or affecting interstate or foreign commerce—(1)a signature, contract, or other record relating to such transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form; and
(2) a contract relating to such transaction may not be denied legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation.

In particular, the quoted portion of the Terms of Use above explicitly create a license, which is most definitely a species of contract, between the content creator and Patreon.

Furthermore, the license cannot be unilaterally canceled by the content creator – it is a “perpetual, irrevocable”, “sublicensable, worldwide” license.

What about all the “you own your content” messages on Patreon?

In a traditional publishing contract granting a publisher all rights to an author’s book, the author continues to “own the content” in that the author is the owner of the copyright to the book. However, the publishing contract grants the publisher the exclusive worldwide right to print, publish and sell the book in all its various forms, including the right to license subsidiary rights for movies, television shows, etc.

Under such a contract, the author owns the content, but can’t do anything with it because the publishing contract grants the publisher all rights to exploit the contract.

Let’s briefly unpack the licensing paragraph:

By posting content to Patreon you grant us a royalty-free, perpetual, irrevocable, non-exclusive, sublicensable, worldwide license to use, reproduce, distribute, perform, publicly display or prepare derivative works of your content. The purpose of this license is to allow us to operate Patreon, promote Patreon and promote your content on Patreon. We are not trying to steal your content or use it in an exploitative way.

PG suggests that the first sentence is inconsistent with the second sentence in tone and, perhaps, in the manner in which it may be enforced.

The portion of the first sentence beginning with “you grant” is precise and definitive. The second sentence is squishier. “The purpose of this license is to allow us to” . . . .

Under general principles governing the interpretation of contracts, if there is a conflict between a specific and a general provision, the specific provision will govern. If PG were representing a content creator, he would suggest that the second sentence above be reworded for clarity:

“The license granted in the preceding sentence is expressly limited to grant Patreon the ability to include content created by the author in various ways that are reasonably calculated to promote the author’s content on Patreon’s website. All other rights of author in and to the content are expressly reserved to author, including, without limitation, the exclusive right to grant others the right to print, publish, license and/or sell the content and/or any derivative rights arising from the content to any third party. After termination of this Agreement for any reason, at author’s request, Patreon will provide a document disclaiming all rights to author’s content if reasonably requested by author disclaiming any and all rights in and to the content.”

 

 

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