As you probably have heard, there is such a thing as an e-book. The idea of the e-book is basically the idea of trade paperbacks. For years people who just wanted to read a story would buy a paperback. They weren't as sturdy as a hardbound copy, but the reader could get the same story for cheaper. But the more expensive option was still there for anyone who wanted it.
E-books just go another step toward making publishing less expensive, and delivering stories to readers in a more convenient way. Mostly it's more convenient for the publishers (in this case amazon.com, applestore, smashwords, etc.). There is no physical copy, so making the text available is way cheaper. There are no physical copies, so there are no worries about printing too many and not selling them. The publisher/author can make changes and corrections without having to run a whole new print line. There's more, I'm sure.
The reader also gets some benefits. You don't have to go to a store to get a book. You can keep an entire library on a single device (or link your devices). You can change the fonts. E-books are cheaper.
Really the last one is probably the driving force for both sides. We've still got the arguments that it's nice to read a physical copy of a book (which I agree with). I do both*. But if I want a hard copy, I can get one. It's just more expensive. I do the same thing with movies too. Some stories I want to ingest, digest, and be done. Others I fall in love with and I want to keep them. Those are the ones I want on my bookshelf. Those are the ones I will keep.
But in the end you as a writer have the same problem you did twenty or fifty years ago. When you write something you need to get someone to read it. That's why the publishing industry came about. Writers can't make a single dollar without someone buying their books. In the end it's all about marketing. We have new online tools, and new markets, but you won't make a cent unless you convince someone else to read your work. And though there are new tools, it's still a pain in the rear end. You can try to sell to a publisher, or you can publish yourself. But you need to find readers, and that takes time. Don't worry though. The good news is that it's still possible, and perhaps even more possible for writers without a big publisher.
And it all starts with writing something worth reading.
P.S. Oh, and I almost forgot. I'm doing a little experiment. I'm giving a presentation at LTUE about how to format your e-book. And a big question is where to put your book and who to format it for. So I put a short story online at Amazon with the limiting Kindle Direct Publishing, and then I put another short story on Smashwords which lets you publish anywhere else. I want to see if there is a significant difference in the number of views or purchases. I'll be posting the results in about 3 months. Not the most scientific, but it will be interesting to see what happens. Happy Writing!
*Realistically, I should admit that I listen to books on tape (or audio books online) so that makes me not a bookworm, but a...I'll let you finish that.
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