Many of us are exploring ways to earn money from home, and I’ve stumbled upon a self-publishing scam that’s as scandalous as something you’d expect from a shady politician. With the economy struggling and more stimulus checks being handed out, it’s not surprising that scams are on the rise. People often resort to unethical methods when they’re desperate.
Before the pandemic hit, a notable incident involved the former Mayor of Baltimore, Pugh, who was sentenced to three years in federal prison due to a fraud scheme with her self-published children’s book series, “Healthy Holly.” It was revealed that the University of Maryland Medical System purchased 100,000 copies of her book for $500,000, which is a suspiciously high volume considering the potential audience.
If I sold 100,000 copies of a book in one go, I’d probably splurge some of the $9.7 million in profits on a lavish vacation. But let’s get back to the scam. The issue was that Pugh was on the board of the University of Maryland Medical System, making the massive purchase seem like a $500,000 bribe.
In the world of publishing, the profit dynamics are quite different between self-publishing and going through traditional publishers. For instance, if Pugh had taken the traditional route, she might have received a $10,000 advance and then earned 10-15% royalties after enough books were sold to cover the advance. This setup makes it tough to earn big, which is why self-publishing can be so lucrative since it allows authors to keep all the profits.
Pugh’s biggest mistake wasn’t just the unethical sales; it was also not providing the books she sold. This failure led to her prison sentence. If she had delivered the books, she might have avoided prison and the hefty financial penalties.
It’s hard not to be tempted by the money. The federal sentencing memo noted that Pugh promised to deliver the books but kept the money instead. She only ever had 8,216 copies, yet she sold over 132,000. She could have avoided legal issues by publishing “Healthy Holly” as an e-book, which would allow easy delivery to buyers.
One of the benefits of self-publishing an e-book is that you control the pricing. Unlike platforms like Amazon, where price cuts can affect royalties, self-publishing on your own platform means maintaining control over pricing. However, listing an e-book for an unrealistic price like $32,924.03 won’t fool anyone and just looks suspicious.
If you opt for a traditional publisher, they’ll set a standard price, and you’ll get a predictable royalty rate. This might offer more stability than self-publishing, where you set higher prices but face other risks and challenges.
Always delivering what you promise is crucial, especially when you have power and influence. Self-publishing can be a creative but risky way to leverage your position. While it opens doors to new opportunities, it also comes with potential pitfalls, like the temptation to use it for bribes.
Self-publishing has definitely gained attention from this scandal, influencing how authors choose between traditional publishing and going it alone. If you have any thoughts on this or know of other scams, feel free to share!
