Writers, like many types of artists, are driven to create. Go to any party and mention you're a writer, and no doubt you'll get the response, "I want to write a book someday" or "I'm writing a book now."
Because books are made of words, and everyone uses words, a disproportionate number of people want to write. And because writing is more subjective than painting or music, it is much easier to deceive oneself that one is a good writer. Because of this, there are a LOT of writers and wannabe writers. Though success depends on an individual's goals, in my generation the only way to become a successful writer was to sell a book to a publisher.
This is a system ripe for exploitation. A lot of hungry, eager artists, and a limited number of slots for big publishing to fill.
Because of this, publishers had all the power. And bargaining from a position of power usually works out well for the powerful, and not so well for the opposing party.
Decades of this unfair advantage lead to our current Publishing Culture. Here are the rules:
1. As long as publishers control distribution, publishers have a lot of power.
2. As long as there are more writers than slots in publishers' lists, writers have limited power.
3. As long as writers consider writing to be a dream rather than a job, writers have limited power.
4. As long as agents have more requests for representation than they can handle, agents have a lot of power.
5. The powerful naturally develop a sense of entitlement.
6. The weak naturally develop Boxer Syndrome.
What is Boxer Syndrome?
Consider
Animal Farm by George Orwell. In it was a horse named
Boxer. Boxer worked his butt off to appease the pigs in power. The pigs got rich off of Boxer's efforts, but never amply rewarded him. Boxer continued to support his own exploitation, steadfastly believing in the pigs, even after the pigs ultimately sold him for slaughter and bought whiskey with the profit.
That, in a nutshell, is the mindset the majority of newbie writers, and a great deal of professional writers, have adopted. We're Boxers.
In the meantime, the publishers (pigs) have developed a sense of entitlement. They see books, and authors, as fungible. If a book or author doesn't succeed, drop it and try another one.
When ebooks arrived on the scene, and key costs could be removed from distribution (delivery, printing, corrugation, distribution) did the publishers accept their previous profit margins and give the authors more of the pie?
No. The publishers made a land grab and kept the money they would have otherwise paid out, taking 52.5% of net and leaving authors 17.5%.
On a $25 hardcover, the author made $3.75 and the publisher made $4.50.
On a $25 ebook, the author made $3.12, and the publisher made $9.37.*
The authors' share went down. The publishers' share doubled. And authors didn't complain. Agents didn't complain. No one complained.
Then Amazon created the Kindle.