Using books for a muse (need legal advice)

[gamalicious]

Hey Y'all,

I have an idea for a muse where I would be re-selling books from a publisher and including value added items such as eBooks, audio interviews and worksheets (all made by me). Does anyone have experience with the legality of re-selling books, if you are going to charge more for using them as a reference source? I am basically putting together a 3 month learning course, but it hinges on these three (popular and best-selling) books.

Would I have to contact someone to pay added royalties?

Can I even do this at all?

Also, yes, I understand the margin would be lower as I would be re-selling published books. However, I really like the idea that I have and from people I've talked to in my target demographic, it could do really well. My target margin would be about 3x the wholesale price on books. Plus I don't like the idea of making my own eBooks and just selling those on their own. I don't have enough credibility and in this area, it's difficult to get it in the time period I'm looking at.

And, no, I haven't found dropshipping/wholesale yet, I am still working out the details of the course.

Thank you so much for any time you can spare to respond to this!

Chris

[TimW]

If I understand you, you want to purchase books from a wholesaler, then re-sell them at "retail", right?

Though I am not a lawyer, etc., I do not believe you'd have to pay any additional royalties, etc., because the authors are paid by the publishing company, not the retailer. Borders and Barnes and Noble to not pay royalties to authors, they pay wholesalers (most likely...or the publishing houses direct....I don't know where they get their books) for the books. Wholesalers/distributors purchase from the publishers. Publishers pay the author.

Royalties are factored into the wholesale price, then marked up each step of the way to add in a profit....publisher charges Distributor X, distributor charges retailer Y (X + markup), retailer charges customer Z (Y + markup).

If you're in the business to sell books, then you'd buy from a distributor.


TimW
Phoenix

[gamalicious]

Hi Tim,

Thanks for responding. I would be in the business to sell books, yes, but moreso to sell a whole package including the books, eBooks based off of ideas in those books, audio interviews with industry experts, worksheets related to the topic for practice, and whatever else I can dream up. I would then charge a lot more than the books cost, as there would be a lot of other material.

The thing I was questioning really was using the books as a basis for a "course" that I'm putting together. I would use all the correct citing in the eBooks to reference these books I'm including, however, I want to advertise the fact that I'm using some of the most successful books in the industry to form this course (though the books I will be using would not be revealed to the customer up front so they don't think they can just go out and buy the books online).

Thanks for any more input I can get.

Chris

[TimW]

So you'd get a wholesale account and buy books from distributors, it sounds like.

As for paying royalties to using the book to make money? You bought the books to re-sell. How you package those books with value-adds, etc., as long as you aren't misrepresenting the books, should be fine. (I am not a lawyer, etc.).

As for the "not gonna say what books I use...", you might want to look that idea over again; I wouldn't buy what you're selling without knowing what makes the package so special. What makes those "worksheets" da bomb? Who designed them...you? What makes you qualified to do that, meaning why would I, the buyer, believe you to be credible?

If you offered me a system on poker, a game I like, and said it included 3 of the top books, interviews with top cash and tournament players, and whatever value-adds you think of (a free set of professional playing cards??), and then DIDN'T tell me at least the authors of the books, I doubt I'd plonk down money on it.

Your idea of a top-author and my idea of a top-author could be the same, or radically different. A money-back guarantee is nice, but is a pain in the ass if I get something I am not expecting.

I can tell you, as a retailer, people have certain expectations about what they are buying. If those expectations are incorrect, after they've had a chance to look at the information, that's one thing. But if they're expectations are not met, because I failed to tell them much/anything about it, then that will kill my reputation.

Thus, it is my opinion that an informed purchase will have a lower return rate than an uninformed one...caused by your desire to not give anything away.

I can't tell you how many times I've referred folks to competing retailers because I didn't/wouldn't carry a piece of gear they wanted, or a piece of gear that didn't fit what they needed (and not just what they wanted). Many of these folks still come back to me because I helped them meet a need, not just sold them a piece of nylon gear.

So, if you tell them the books and they purchase them at Amazon (or wherever), then they do that. By advertising what those top books are, and why buying the package from you is better than going to Amazon, you are providing a service, not just books.

and in my view hiding the titles of the books doesn't accomplish that.

Others may have different opinions on this, but that's just how I see it.

TimW
Phoenix

[kamakiri]

Instead of starting out the hard way, why not try selling through amazon? They have an entire suite of web site options for you to make your own online store.



Going this route, you can start out with much less risk compared to having your own inventory/site and other associated costs.