Still, don't take this post as a slam against Lulu, because Lulu may yet be the better choice for some authors and publishers. With CS, you deliver a print-ready manuscript file and cover art file, and CS prints your book---end of story. With CS there is no quality control, no one is checking your content for errors, nor even ensuring that you haven't inadvertently left editing marks in your manuscript file. You must be willing to either do all the tasks involved in bringing your book to print by yourself, or hire out for them as needed.
UPDATE, 9/30/09 - Createspace now offers publishing packages with added pro services for additional fees, but such packages are optional and you can still opt to use CS strictly as a printing/binding service.
Lulu, on the other hand, offers author service packages for authors and publishers who don't intend to go it alone. Those of you who do intend to go it alone, read on. Note that prices quoted herein are accurate as of this writing, but subject to change going forward.
I've spent considerable time wading through the terms, services, help and FAQ pages at both CreateSpace and Lulu, among other places, and here's what I've found.
Lulu - Published By You, Or Published By Lulu
If you go through Lulu, you can choose 'Published by You' or 'Published by Lulu'.
With PbY (US$99.99 if you're in the US, Germany or Netherlands and $137.84 if you're in the UK or Ireland), you retain all publication rights to your book and automatically get Lulu's Expanded Distribution Service thrown in, which will list your published book with book stocking catalogs used by international booksellers and libraries.
With PbL (free), you grant Lulu exclusive publication rights to your ms and must pay $49.95 extra for the Expanded Distribution Service if you want it. While Lulu's site isn't terribly clear on the ramifications of this, I would take it to mean that you cannot publish the same edition of the same book elsewhere (i.e., publish through Lulu for international orders and through CreateSpace for US orders), and it may also mean you must return to Lulu if/when you want to publish new editions of the same book. Here's the relevant licensing agreement.
***4/24/09 - update...the word "exclusive" no longer appears in Lulu's PbY agreement; however, if you read through the numbered items in the agreement, they seem to grant Lulu a de facto exclusive publication right anyway. Like I said, the verbiage isn't completely clear on what rights you are and aren't signing over to Lulu. Compare to this, from CreateSpace's user agreement, under the heading of Ownership:
Subject to the licenses set forth in this Section 6 and the following sentence, and as between the parties, you own all right, title and interest in and to the Content, including all patent, copyright, trademark, service mark, mask work, moral right, trade secret or other intellectual property or proprietary right (collectively, "Intellectual Property Rights") therein.
The stuff in Section 6 pertains to licensing rights allowing CS to set your book up for Amazon listings, search inside the book, etc., and earlier in the agreement CS refers to itself as a Seller of your content, but never refers to itself as the "publisher" the way Lulu does. Here's a link to the full CS agreement. If you are seriously considering working with Lulu, I'd suggest you contact them directly and get more specific information in writing before deciding one way or the other.***
In fairness, I'll say that if you accept CreateSpace's free ISBN, CreateSpace remains the registered owner of that ISBN, which means you will not be able to list your book with catalogs like Bowker's and Nielsen's because only the registered ISBN owner is allowed to do so. However, YOU still retain all rights to the material, you are not asked to grant exclusive publication rights to CS, and the matter of registered ISBN ownership isn't as big a deal for most individual indie authors as some scaremongers make it out to be.
If you're in the UK or Ireland, you must agree to this, separate terms of service for the PbY service. Note that it says you will be required to accept an assigned block of 10 ISBNs from Lulu. However, even if you opt for the free PbL service, you still must pay the Expanded Distribution Service fee of $49.95 to get your book listed in international book catalogs. Confused yet? Let's take a look at a recap of these pricing options.
US/German/Netherlands authors/publishers:
PbY option = US$99.99
Expanded Distribution for PbY option = included in PbY option
PbL option = no charge
Expanded Distribution for PbL option = US$49.95
no requirement to sign the Ireland/UK terms of service
UK/Ireland authors/publishers:
PbY option = US$137.84
Expanded Distribution for PbY option = included in PbY option
PbL option = no charge
Expanded Distribution for PbL option = US$49.95
must sign the Ireland/UK terms of service
See Lulu's chart comparing the distribution options.
What Does Lulu's Distribution Service Promise To Deliver - Or Not?
So maybe you're willing to fork over the extra money for international distribution, but here's the zinger. Right in its terms, Lulu says:
"The decision to list a book is up to the individual retailer. Published By You and Published By Lulu distribution services gets your book listed with the distributor used by major retailers like Amazon. This means major booksellers will have the option and ability to list your book as available for sale, which they did not have before. In our experience, Amazon will almost always list a book for sale once they have access to it through the wholesaler.Then again, when you purchase a distribution service, it can take 6 to 8 weeks for your book to hit an online bookshelf. This is because most booksellers only update their database with new listings once a month."
In other words, while they will get your book into the major distributor catalogs, Lulu does not guarantee your book will be listed on Amazon or anywhere else. The catalogs Lulu lists with are Bowker (for US + int'l.) and Nielsen (for UK). I don't doubt that "Amazon will almost always list a book for sale once they have access to it," but I don't know that "almost always" is worth paying a fee for.
As it turns out, you can register to add your own listings to these services FOR FREE, but only if you are the publisher of record. That means that whether you publish thru Lulu or CS, if you want to be able to add your catalog listings (which accomplishes the exact same thing Lulu says they'll do for you with their 'expanded distribution service'), you must purchase your own ISBNs from Bowker, and possibly your own barcodes as well.
Bowker offers a package deal where you can get your own ISBN + barcode + Bowker catalog listing starting at US$150. That's $50 more than the $99.99 US Published by You option at Lulu, and $12.16 more than the UK/Ireland Published By You option at Lulu.
One advantage of listing your books through Bowkers and Nielsen, whether you do it yourself or let Lulu do it for you, is that doing so makes your books available for order through any retailer, bookstore or library. Personally, I don't feel indie books receive enough bookstore or library orders to make this worthwhile, but if your motivation is to make your book available to be listed on Amazon.ca, Amazon UK, Barnes & Noble online and even Borders online, it's probably worth the expense.
In contrast, if you opt for the Premium package at CS (US$39, a one-time fee that keeps your per-copy production costs permanently lowered), plus the Bowker ISBN + barcode package (US$150), you'll be out up to US$89 more than if you'd gone with Lulu under PbY. However, you won't have been required to sign that UK/Ireland terms of use, and your book will have all the same international listing opportunities as if you'd gone w/ Lulu's PbY service.
At this point you may be thinking Lulu still looks like the most sensible option, even with the UK/Ireland terms of service, but you haven't taken per-copy production costs into account, and that's where Lulu really fails.
Per-Copy Production Costs Are The Bottom Line
Taking one of my own CS books as an example, a 346pp, perfect-bound, 6x9, black and white trade paperback with full color cover, with CS's Premium service my per-copy production cost is $5. That means I pay $5 per copy to buy author copies. The same book thru Lulu will run me $11.46 in production costs per copy, and $11.46 to buy each author copy.
Mainstream trade paperbacks of these approximate dimensions sell for US$14-16 in stores. Given that the bookseller's take is a standard 40% wherever you sell, online or brick-and-mortar, if I want to price my book right in the middle of that range ($15) the bookseller's take is $6. Just to break even, I'd have to raise the retail price on my Lulu book to just over $19, $20 or more if I'd like to make at least $1 profit per copy.
The CS book, by comparison, can remain priced at $15 per copy and I'll still earn $4 per copy in net profit/royalty. In fact, I can price my book at the lower end of the scale, at $14 (which in fact, I do) and still earn $3 per copy in net profit. That's a royalty of 21.4%, which is a damn sight better than mainstream authors get.
But what about that total expenditure of $189 you'd have to absorb ($150 to Bowker + $39 to CS for the Premium package), or the $100 ($138 in the UK) you'd spend on Lulu's Published By You program? Assuming you price your Lulu book at $20, you'd have to sell 100 - 138 copies before you break even. You wouldn't clear your first dollar of real profit on your Lulu book till copy #101 - 139 sells. However, if you've published through CS you can make back most of your upfront investment in author copies.
Recall that Lulu's author copies for this book are $11.46 each, and CS's are $5. You save $6.46 per author copy by publishing through CS. If you plan to order 25 author copies (for friends, family, hand-selling, and sending to reviewers), you'll save 25 x $6.46, or $161.50, right there. This leaves you with about $28 to recoup, which means if you'd have to sell 7 copies of a $15 book to break even and 10 copies of a $14 book to break even. Given that your CS book is priced so much lower than your Lulu book, it will be much easier to make those sales than if you'd gone through Lulu.
While it's true that Lulu offers production cost discounts on their POD books on a sliding scale based on how many books you order upfront, given that the whole point of going POD is not having to order a minimum quantity up front for hand-selling, such discounts aren't terribly relevant to the typical author seeking POD services.
