Aircraft User Fees

And why general aviation pilots and businesses should be fighting back.

There’s been a lot of talk — and fighting against — the Bush Administration’s “Next Generation Air Transportation System Financing Reform Act of 2007.” I’ll be the first to admit that I don’t have all the details. But here are a few things that seem pretty clear to me.

Higher Fees Hurt Business

The User Fee system proposed by the Bush Administration may severely cut the activities of general aviation pilots. According to AOPA President Phil Boyer, “Nine out of 10 AOPA members have told us that this would reduce, curtail, or end their flying.” What’s that going to do for the aviation industry? As current pilots who can no longer afford to fly regularly sell off their aircraft, the used aircraft market becomes flooded. Fewer people will be buying new aircraft, so manufacturers will suffer. Suppliers to those manufacturers will suffer, as will employees all around.

As costs increase for general aviation businesses like flight schools, charter services, and tour outfits, those costs get passed along to consumers. That drives prices up, possibly making these services too costly for the marketplace. There are fewer customers. Businesses fail. This continues the cycle of used aircraft sales and unemployment.

Proposal Seems to Ask General Aviation Pilots to Bail Out Airlines

Shifting the cost of ATC services from airlines — which are responsible for hundreds of thousands of passenger hours a day — to general aviation is simply unfair. Many of these companies are failing financially because of their top-heavy management organization and unreasonable pay scales. Why is it that some airlines — Southwest comes to mind — are financially fit and offer good service to their customers while other airlines — think United — can’t stay afloat without government funds and pension rule changes? Could it be that some companies are simply managed better than others?

Do you think it would be fair for all people who use banks to pay a certain tax to the government for a fund that’ll bail out mismanaged banks that go under? Like the ones that gave out mortgages to anyone capable of writing their name on a form, no matter what their financial situation was?

Or how about a tax on drivers to be put in a fund to bail out automakers who don’t build the cars we want to buy at a price want to pay?

Or a tax on homeowners living in the desert for a fund that rebuilds oceanfront summer homes destroyed by hurricanes?

Is any of that fair?

Get Involved!

If you think the administration’s proposal is a bad one — or even if you want to learn more — get involved. If you’re an AOPA member, you can sign up to get e-mail notifications of developments, as well as instructions on how you can contact your government representatives to tell them what you think.

You can also go to this page to get more information about the funding debate.

Don’t wait until it’s too late. Act now.

More on AdSense Splogs

Four more pingbacks from feedscrapers today!

After writing my two splogging-related posts this morning, I went for a flight with some clients. Just got back a while ago. And what do I find in my e-mail inbox? Four more splog pingbacks!

I also found a message from Jim Mitchell, responding to an e-mail I’d sent him earlier in the day. He included a link to a blog post on MaxPower that provides two good methods for stopping AdSense sploggers. I’m going through it now. But the thing I wanted to share was this explanation of what splogging is, for those of you who have no idea what I’ve been whining about all day.

From Stopping Adsense Splogs & Spammers: Methods that Work on MaxPower:

Imagine searching for something or other on the Internet and arriving at a webpage chocked full of ads and stuffed with the exact keyword you were searching for. The page is of no help because it contains no content of value. Some guy somewhere, created a website that sucks keywords / newstories / content from other websites using RSS, inserted the right keywords to maximize profit from Adsense, and waited for Google to index and rank it high enough for you stumble upon it. Once at the page, the spammer (or spamdexer) hopes that you will click on one of the Adsense ads that seem helpful compared to the rest of the useless random text. This practice of spamdexing wastes your time, its annoying, and you can fight back.

If you’ve seen this on your blog, follow the above link to the MaxPower article to see what you can do about it.

Royalty Statements

What my quarterly royalty statement tells me.

I make my living as a writer. Sure, I do other stuff and bring in money doing it, but when it all gets down to dollars and cents, the money I receive from writing is what pays the mortgage and puts food on the table.

With a new royalty statement in my hands, I thought I’d take a few moments to explain to folks interested in writing how the royalty part of writing works and what can be learned from a royalty statement.

How a Typical Writer Receives Income

Money from my writing work comes in three ways:

  • Payments for articles. When I write an article for publication, I normally get a check within 2 to 4 weeks of publication. The amount is agreed upon in advance, so I know what to expect but not exactly when to expect it.
  • Advances for work in progress on books. When I sign a book contract, it includes a payment schedule for advances. I like my advance paid in three or four installments that are due when certain parts of the book are submitted to my editor(s) — in other words, when I achieve completion milestones. A typical arrangement might be 1/3 on signing, 1/3 on 1/2 completion, and 1/3 on completion. Depending on the publisher, the checks usually arrive within 2 to 4 weeks of the milestone. Again, I know how much to expect but not exactly when to expect it.
  • Royalty payments. When I sign a book contract, it also includes a royalty percentage. The percentage is applied to the wholesale price of the book. So, for example, if the royalty is 12% and the book retails for $20 (about average for my books), the 12% is applied to the amount the publisher sold the book to retailers (or book clubs or direct order customers) for. A good rule of thumb is about 50% off the cover price. So I’d get 12% of about $10 or $1.20 per book. This royalty rate is applied to all sales of a title to come up with a royalty due. The amount of advance is then subtracted — remember, that was an advance on royalties — and if the result is a positive number, the book has “earned out” and I get a royalty check. My publishers pay royalties quarterly, although not on the same schedule. I know exactly when a royalty check will come — well, within 3 days of an exact date — but I never know how much I’ll get.

After doing this for 15 years, I’ve come to think of advances as my “bread and butter,” payment for articles as “fun money,” and royalties earned as “icing on the cake.” I won’t write a book unless the advance is enough to cover the amount of time and effort I put into writing the book. (I turned down two low-advance projects just last year.) This way, if the book doesn’t earn out, I’ll still make enough to keep paying the bills. If it does earn out, great. And since I don’t do a lot of work on articles — it’s just too much effort to get the work lined up — I don’t rely on that income for anything. That’s kind of unfortunate, because I can usually bang out one or two articles in day, so the income would really be great if I’d get get more of that kind of work.

As you can imagine, royalty statement time is a big event at my house — especially when Peachpit royalties are due. The statement comes in a big fat envelope. The reason: there are lots of pages. But one of the first pages of the package is the royalty check. And a quick peek tells me just how much icing I’ll have to spread around for the next three months.

How Many Books are on the Books?

The reason my Peachpit royalty statement comes in a big fat envelope is because there are lots of pages. The statement sitting in front of me right now is 61 pages long. I can’t even get a staple through it for filing.

The first few pages — 4, this time around — is a summary of the ISBNs covered by the statement. This list of ISBNs — 34 of them this quarter — are the books the publisher still has in its accounting system.

I need to make a distinction here between titles and ISBNs. A good example is right on the first page. My 2004 title, Creating Spreadsheets and Charts in Excel: Visual QuickProject Guide, is listed three times: the original title, the German translation, and the French translation. Sometimes translations get their own ISBN and sometimes revenue for a translation is listed for the main title. It depends on how the translation rights were sold. Also, since Peachpit is now selling PDF versions of some of my books, those versions appear on a separate line.

Still, a quick count of titles on this quarter’s statement shows 28 titles listed. Whew! Even I think that’s a lot.

In my case, the vast majority of my work these days is in revisions. So each statement might show multiple versions of the same book. This is especially true for titles that are still “alive.” For example, my America Online: Visual QuickStart Guides (a 2-part — Macintosh and Windows — nightmare completed for version 3.0 years ago) are “dead” titles. They came out, sold poorly, and were not revised. These book are dead and buried and the only reminder that I ever did them are the author copies of each book on my author copy shelf. But my Excel for Windows: Visual QuickStart Guide is alive and kicking — in fact, I just finished the revision for Excel 2007 this week. Three editions appear on my royalty statement: 2000, 2002, and 2003. (2007 will appear on the next statement.) And my Mac OS: Visual QuickStart Guide takes up the most lines: seven editions going back as far as the edition covering Mac OS 9.

For a title to appear on the royalty statement, it must be either earning money or losing money (by returns) with a more recent edition to suck up the losses. This is an important clause in book contracts — one that’s important enough to discuss in a little more detail here. Commonly known as cross-accounting or cross-deductions, it means that returns on one title can be applied to net revenue on another. So, for example, if my share of returns on an old edition of my Excel book was $43.54, that amount could be deducted from or charged to royalties on a more recent edition. That’s normally why books stay on royalty statements for so long — there’s still accounting for them.

It was kind of a good thing that my AOL books didn’t have more recent editions. Neither title earned out, so the money I was overpaid for those books could be deducted from future editions, had they existed. Instead, the publisher cut their losses by not doing new editions (a wise move) and simply stopped accounting for the existing books when the numbers stopped coming through. The books “fell off” my royalty statement.

(If you’re ever given the opportunity to negotiate a book contract, do not sign a contract with a clause that says all of your books can be pooled together for cross-accounting. (I don’t know the exact wording of a clause like that because I’ve had it removed from every single draft contract it appeared in.) Agreeing to this may prevent you from ever getting a royalty check if you write multiple titles for the same publisher and any or them are dogs. If you’re really lucky, you won’t even have cross-accounting for the same edition of a book — I was lucky to have that situation with one of my Quicken titles years ago. But I think it’s fair to do cross-accounting with different editions of the same book, so I don’t mind signing for it. I just brace myself for the returns every time a new edition comes out.

And returns, in case you’re wondering, are returns from retailers/wholesalers, not consumers. If Barnes & Nobel buys 1000 copies of a book and sells 200 of them in the time they allotted to give the title shelf space, 800 copies come back. That’s a bad thing for the author.

What the Summary Numbers Mean

Still with me? Here’s a bit more that the summary pages tell me.

For each ISBN, the summary page has 6 numbers:

  • Previous Balance is the amount owed to me (positive number) or the publisher (negative number) for the ISBN. There usually aren’t any positive numbers; if the publisher owned me money, they paid me last quarter. So books that are earned out show zero in this column. If I owe the publisher money — for example, the book hasn’t earned out or subsequent returns have put the ISBN in the red — that number appears as a negative value. Zero is good, negative is bad.
  • Earnings/Subsidiary Rights Earnings is what the book earned me during the quarter. That’s the royalty calculation applied to net sales. Positive numbers means they sold more books than they received in returns. Negative numbers mean they got more in returns than they sold. Positive is good, negative is bad.
  • Credits/(Deductions) is the amount paid out during the quarter for advances or, if the author is paying for indexing, the amount paid to the indexer. I’ve never seen a positive number in this column.
  • Cross Deductions is where they take returns from one title and apply them to royalties earned on another title. So, for example, if the net earnings on my Word X book were -$53.47, that amount would appear as a positive value in this column for that ISBN and a negative value in that column for a later edition — perhaps my Word 2004 book. If you add up the cross-deductions column, the net amount should be zero.
  • Payment Due is the net amount owed to me for the ISBN. This number is either zero or a positive number.
  • Balance Forward is the amount that needs to be earned out to get more royalties on the ISBN. It’ll be zero if there was a payment in the previous column or a negative number if zero was in the previous column. That value is carried forward to the Previous Balance column in the next statement.

Of course, this is the format Peachpit uses. Other publishers may use other formats.

So when I get a royalty statement, the second thing I look at is the summary. (The first is the amount of the check, of course.) The summary tells me which books are earning money for me. That’s usually current editions of books. This is where I can see at a glance whether a new title has earned out. I can also see which books are earning me the most money — the titles with bright and happy futures. The bigger the payment due on a title, the more likely that title will be revised in the future. (Unless the software publisher decides to kill the software, as Adobe did to PageMill years ago. That book was doing very well when it was killed.)

Sometimes I get pleasant surprises. For example, my Excel 2002 book is still selling. That book was published five years ago and it earned $262 for me this quarter. Okay, so that isn’t enough to host a big party, but it’s a nice thing, a good thing. After all, the average life of a computer book is 18 months. So to have one that’s still bringing in a few bucks for me after five years is great.

The summary statement also tells me which titles are dead. These are the titles with previous balances that are negative numbers and no revised editions to earn more revenue. Sometimes these titles have ugly negative numbers in the Earnings column, indicating returns. My QuickBooks Pro for Mac book is in this situation. Although it’s the only title covering that software, there simply aren’t enough users interested in buying a book to make the book earn out. So when my editor says the publisher is not going to revise the title, I can look at this royalty statement and understand why. The book is dead.

Want more detail? The summary pages are also a table of contents for the 57 pages that follow them. That’s where I can find information about units sold, subsidiary rights (like translation rights), and where the books were sold: U.S., Canada, Export, etc. To be honest, I don’t look at these pages for every title. Heck, I have enough to do in a day.

What I Learned this Quarter

Looking at the royalty statement is like peering into a crystal ball. I learned that there are certain topics I probably won’t be writing again and other topics I’ll be writing about for years to come. I learned which of my books is doing best for me (still Tiger, after two years!) and which ones I might want to promote a bit more to liven up.

But with 61 pages to review, that’s about all.

Three Things to Consider when Blogging for Business

Some thoughts.

A while back, I was interviewed by a local newspaper reporter about my blog. Being the newspaper’s “business advocate,” he was most concerned about blogging for business.

That’s actually a good topic of discussion for anyone who blogs and operates a business. (That includes me, since I actually own and operate two active businesses: my writing “business” and Flying M Air.) So I thought I’d share some of my thoughts about blogging for business here.

Purposeful Content

One of the first things to think about when blogging for business is content. You have a few options:

  • Publish content that has nothing to do with your products, services, or industry. I’m not sure why you’d want to do this in a pure business blog. (I do it here, but that’s because this blog wasn’t created to support my business.) It could provide enough interesting content to attract visitors and some of those visitors might develop an interest in your products or services. But if you propound opinions — especially political opinions — that are unfavorable to some visitors, you could actually damage your company’s reputation and lose potential (or worse yet, existing) customers. I think Bob Parsons, CEO of GoDaddy.com committed this sin; I recall reading a bunch of mailing list messages urging other readers to boycott GoDaddy.com because of something Parsons had said in his blog. (I decided to boycott the list instead and dropped my subscription.)
  • Publish content of interest to your customers that isn’t directly related to your products or services. This is something I do with this blog. My customers (the folks who buy my books) are obviously interested in topics my books cover. But what of related topics my books don’t cover? When I write an article about blogging for business, the article may appeal to some of the folks who have bought my WordPress book, since that book covers blogging software. But it goes beyond the scope of that book to offer additional helpful information. (At least that’s the goal.) It also appeals to bloggers using other blogging platforms that I haven’t written about or don’t even know about. Those people are not going to buy my WordPress book. When you publish content like this, it makes your blog a place for people to get valuable information. These people may be customers or future customers. Or they might be people who will recommend your site to potential future customers.
  • Publish support content for your customers. This is probably the best and most useful thing you can do with a blog — provided your Web site doesn’t already have support information in an easier to reference or search place. Some good examples include the blogs for FeedBurner, Tumblr, and Google advertisers. I do this on my blog by publishing clarifications and corrections to my books in the various Book Support categories and answering reader questions in Q & A.
  • Publish pure marketing content. I’m talking about information about new products, special offers, and links to product reviews. This is obvious business stuff and I do it on both of my business-related sites. Here, I’m sure to mention when a new book has hit bookstore shelves or if one of my Informit articles is published. On Flying M Air’s Web site, I have a What’s New category where I list new tours and excursions as they are released and a Special Offers/Be Spontaneous! category where I release information about limited-time offers. But in all honesty, although Flying M Air’s Web site is blog-based, I don’t really consider it a blog. You can find better examples of this on many business-related blogs, including the ones listed in the previous bullet point.

If you don’t consider content first, you might find yourself in a situation where you don’t know what to publish. One of my publishers went through this exercise with its blog. It turned the blog over to a single person who had a single focus of interest. The resulting entries appealed only to a small group of visitors and did a pretty good job of alienating others, including me. The project has since been turned over to someone else and the content is more well-rounded.

Writing Style

One of the things I don’t like about some blogs is the writing style used by some bloggers. (Fortunately, I don’t see much of this because I seldom visit a blog more than once if I don’t like the way it’s written.) Some people write as if their company’s legal department is looking over their shoulder. Or their fifth grade English teacher. Or their boss. Or their teenage son.

A blog’s writing style should set the tone for the entire blog. Here are some examples of what I mean:

  • Authoritative. You’re the expert and your words prove it. But be careful with this one. If you make a solid, authoritative statement and it’s wrong, your blog’s comments will fill with corrections — some of them worded in a very nasty way. And if people rely on what you tell them and have problems, you’ll wish your legal department was looking over your shoulder as you were writing.
  • Friendly and helpful. This is my preferred approach. I try to write as if I’m talking to a friend, offering suggestions, advice, assistance. You might not know all the answers, but here’s what you know — or are pretty sure about. Is the information helpful? If so, great! If not, well, keep checking in; you might find something more helpful in the future.
  • Hip, cool, groovy. (Am I dating myself here or are those words back in the current vocabulary?) You’re part of the “in crowd” and you know your readers are, too. You use current slang and make reference to people, places, or things in popular culture. Grammar isn’t important, spelling goes with the current trend. If you want to appeal to others who communicate this way — especially young people who are influenced by current fads — this is the way to go. But be aware that it’s likely to alienate everyone else (including me).

These are just some examples. The best thing to do is come up with a tone that’s comfortable to you. If you pick the wrong tone, your readers will probably know it. And they’ll wonder what else is fake about your blog’s content.

Branding

Another thing to consider is the presentation of your company’s blog. Everyone in business these days knows how important branding is. While you might think it’s okay to throw a blog up on wordpress.com or blogspot.com, formatting limitations are likely to make it impossible to give your blog the same branding elements as your Web site. If this is important to you, you’ll need to take the time and effort (or hire someone else to take the time and effort) to set up a fully customizable blog that can include your company logo, colors, fonts, and images.

In my world, Flying M Air is a perfect example. When I had my company’s brochure redesigned by a real designer (imagine that!) nearly a year ago, I decided to use the color scheme, shapes, designs, and existing logo as branding elements that I’d use on my Web site, business cards, and other presentation and marketing materials. That meant rebuilding the site from the ground up — which turned out to be a bit of a challenge, given that I wanted to use WordPress as my publishing platform. (WordPress is heavily reliant on CSS and I know just enough about CSS to be dangerous. I documented the task in a 7-part series on this site, if you’re interested in reading about my experience.) The resulting site supports my “brand” and is clearly identifiable as “official” Flying M Air material.

Conclusion

These are just a few things to think about when setting up a blog for your business. I’m sure if you brainstorm a bit, you can come up with more. (After all, I’m no expert!)

And brainstoming is probably a good idea if you’re getting ready to launch a business blog project. Get everyone who will be part of the blogging team involved. Talk it over together. Come up with a plan.

Just remember that every plan should be flexible, allowing for change as change is needed.

Got some advice to share? Use the Comments link.

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Tumblelogs

I discover a new, abbreviated form of blogging.

One of the things I’ve noticed about my blog is that a high percentage of the entries are extremely wordy, full of stories or opinions or information that I’ve spent a lot of time thinking about, compiling, formatting, and publishing. And it seems that most serious blogs are the same.

Enter, the tumblelog, which has apparently been around since 2005. This short-form blog is ideal for quick and dirty entry posting. In fact, that’s what it’s supposed to be for.

From Wikipedia:

A tumblelog is a variation of a blog, that favors short-form, mixed-media posts over the longer editorial posts frequently associated with blogging. Common post formats found on tumblelogs include links, photos, quotes, dialogues, and video. Unlike blogs, this format is frequently used to share the author’s creations, discoveries, or experiences without providing a commentary.

I first heard of tumblelogs on either the TWIT or MacBreak Weekly podcast. Leo Laporte and other members of those two podcast teams use Tumblr to create and publish their tumblelogs. Curious, I went to check it out for myself. And, on the FAQs page there, I got a the analogy that sold me on trying it for myself:

If blogs are journals, tumblelogs are scrapbooks.

It might be nice to have an online scrapbook, I thought. I decided to sign up for a free Tumblr account and give it a try. The result is the unimaginatively named Maria’s TumbleLog, which can be found at tumblelog.aneclecticmind.com. (And yes, you can host a tumblelog on Tumblr’s site; I just got fancy and set mine up with my own custom domain name.) Since then, I’ve added entries that include photos and quotes. I’ve also set up my account to automatically create links to new articles in a number of feeds — including the one for this WebLog.

Although I like the ease at which entries can be added to my tumblelog, I don’t like the fact that there’s no offline composition tool. But I think that’s because I’m worried about composition — a task that simply doesn’t apply to tumblelog entries. Entries are extremely short and to the point: a photo with a caption, a quote with the name of the person being quoted, a link all by itself. While it is possible to create a standard text entry, I’m going to try hard not to — unless I can keep it to 100 words or less. That’s not an easy task for me — writing more has always been easier than writing less.

Will anyone read my tumblelog? I don’t know. Do I care? I don’t know that, either.

Right now, the idea is too new to me. I’m more interested in experimenting with this form of expression and seeing whether I can stick to it.

I’ve been blogging for 3-1/2 years now; it’ll be tough to branch some of that energy off to a similar yet very different form.

In the meantime, I’d be very interested in hearing from others with tumblelogs. Use the comments link. And be sure to include a link to your tumblelog in the form so other readers and I can check it out.