"It ended with lawyers."

That's how Ted Nace describes his offset book deal, a "decease of a thousand cuts" that culminated when his publisher, Microsoft Press, decided to change his book's title, "The Software Author's Handbook," to "Programming for Profit" at the last infinitesimal. Nace fought back by pulling the plug; his volume never went to printing. David Korten'southward story isn't much improve. McGraw-Colina removed his commencement book, Hierarchy and the Poor, from shelves afterward only six months. "They'd promised they'd promote the book worldwide and go on information technology in impress," Korten recalls. "Even things that were conspicuously printed in the contract they ignored." (Both publishers declined to annotate.)

Such is life in the traditional publishing industry, where authors have petty, if any, say in how their work is edited, printed, distributed, and marketed. In part, that's considering most large houses such equally Simon & Schuster, HarperCollins, or Penguin Putnam pay authors a cash advance, often taking ownership of the production before folio one has fifty-fifty been written. Only even that's no guarantee of success. A book by the average writer–that is, the average author who manages to find an amanuensis and land a deal–sells just eleven,800 copies, according to the Volume Manufacture Study Group, a nonprofit research organisation, and RR Bowker, a provider of bibliographic data. More often than not, the book heralded as the side by side Good to Bully or Harry Potter becomes just another case of pulped fiction. "What's to say nearly publishing today?" laments Adrian Zackheim, publisher at Portfolio, Penguin'south business banner. "The tale of woe is more woeful. In that location are horror stories everywhere."

Zackheim is talking about an industry where $28.6 billion in 2004 revenues was split among 195,000 books. That'south simply $146,667 per book. Cistron in the cost of acquiring, editing, manufacturing, marketing, and shipping each title, and publishing begins to look similar the inverse of Vegas: a place where the house commonly loses.

And and so in that location'south Berrett-Koehler, a small-scale 13-twelvemonth-old San Francisco-based publisher with a radically different approach. By turning the experience into a collaborative model that brings together the author, the editor, outside reviewers, and even readers, Berrett-Koehler has established itself as a house authors call home. "A lot of publishers care for authors like nuisances," says Steve Piersanti, BK's founder and president. "We treat them like partners." That's the case with Nace and Korten, both of whom somewhen found success–and creative satisfaction–with Berrett-Koehler. "It's like having your own professional in-house back up staff," Korten says.

The results–smarter books and better sales–speak for themselves. Terminal year, BK's revenue grew 25%, to $seven million, and is projected to grow another 50% in 2005. The average BK author sells some 15,000 copies, 27% more than the industry average. "BK epitomizes what . . . smaller, focused publishers of the nowadays and hereafter can and should exist doing," says Michael Cader, founder and editor of "Publishers Dejeuner," a daily newsletter that covers the publishing industry.

Although Berrett-Koehler is still a pocket-sized company, with a catalog of only 30 titles and 250 authors, it has attracted such big-name writers as Ken Blanchard, the prolific consultant backside the One Minute Manager serial, and management don Henry Mintzberg. "The big houses . . . basically give a volume a six-calendar week wait, and so they movement on," says Blanchard, who has published five books with BK. "Steve is ever asking what nosotros tin do to proceed it going. It'due south win-win."

Average revenue per book [publishing manufacture]: $146,667

Average revenue per book [Berrett-Koehler]: $220,000

Much of BK'southward arroyo is a reaction to Piersanti's personal experiences. He started his career in 1977 as a re-create editor for Jossey-Bass, an banner of John Wiley & Sons, and became president 13 years later. What he saw on the manner up upset him. Across the industry, he says, authors, suppliers, and employees "were treated like they didn't matter." Ordered to lay off eight staff members in 1992 despite the fact that sales and profits were up 22% and 42%, respectively, Piersanti refused. He was given less than an hr to go out the building.

Inside days of Piersanti'south firing, suppliers, investors, and printers were offer lines of credit and encouraging him to starting time his ain publishing firm. Established authors stepped forward with book projects fifty-fifty though Piersanti had no staff or press. He took them up on it, and Berrett-Koehler, named to sound bookish but really a mix of random family unit names, was built-in.

Piersanti didn't desire his company to be like other publishing houses. For starters, he hoped to share the wealth: Although Piersanti owns 54% of BK, more 100 authors, customers, employees, and suppliers own the remaining 46% of the company. He aimed to create a "nerve heart," empowering employees, investors, suppliers, and authors to make key decisions about their creative works together. For Nace, this meant the freedom to publish Gangs of America online for free, despite concern that such a move might hurt hard-copy sales. (He says it actually helped them.) For Korten, author of When Corporations Dominion the World, it meant having his choice of three different copy editors.

Once the contract is signed, i of the offset differences authors discover at BK is the lack of upfront cash. Dissimilar most publishers, the visitor doesn't offer advances, so authors will earn money only with royalties if the book sells, a hardship for those who need to pay the hire while writing their masterpieces. However if they aren't happy, they're free to leave. BK limits its contracts to one book at a time, uncommon in an industry where multibook contracts are typical, and allows authors to break their contracts at will. Piersanti one time released Blanchard and his coauthors from a tentative agreement after they were offered a $500,000 advance for their book past a competitor. Since 1992, only one author has officially broken his contract, saying he felt more than comfortable with a traditional publisher.

Next comes the manuscript-review procedure. While most houses employ a handful of full-time editors, BK commissions the help of some 200 freelance reviewers–from college professors to politicians. BK's senior managing editor, Jeevan Sivasubramaniam, who oversees the wide network of volunteers, likens the procedure to matchmaking. Upon receiving a manuscript, he'll team the author with a reviewer whom he believes will like the book, one who is spring to be skeptical, and a couple of others, including at least ane "wild bill of fare" with no specific background in the subject field. The reviews–often 15 to 20 pages from complete strangers–can be hard to swallow, peculiarly after months or years of solitary wordsmithing. "Authors are typically horrified," says Piersanti. "For the first three or four days they can't even run across straight."

Average number of copies sold [industry]: xi,800

Average number of copies sold [Berrett-Koehler]: xv,000

The ends justify the ways, says Sivasubramaniam, who derives a mischievous pleasance from his role as matchmaker and intellectual alchemist. "When four reviewers who've never met ane another come to the same conclusions, the writer pretty much has to stop and heed," he says. That was certainly the instance with Margaret Wheatley's latest book on resilient organizations, Finding Our Way. Originally slated as a collection of older, previously published essays, the book was fleshed out and updated with new, more-relevant insights after reviewers encouraged her to do and then. And because BK includes names and contact info with each manuscript review, many authors have gone on to forge close friendships or working relationships with their reviewers.

Authors are also invited to spend a day presenting their books at BK'south offices, where staff and company friends discuss everything from chapter titles to which bookstores might host a reading. At Korten'south most recent "author day," 1 attendee, a twentysomething bookstore clerk, opined to the sixtysomething best-selling author about "social change during the past century." A young BK staffer chimed in, alluding to the "brunt of history." Korten listened patiently. Asked whether or not his side by side book could mayhap do good from a podcast or wiki, Korten hesitated, sweat beading his forehead. "Is that like a hickey?" he asked.

At a traditional house, once a volume is edited and ready for press, authors ofttimes have little to do with the significant marketing decisions surrounding it, such as the title, cover design, book jacket, and promotional material. While a blood-carmine cover may make sense to the boilerplate marketing exec, it may non be what the author had in mind. BK addresses this problem by giving authors and designers a chance to work cooperatively through an interactive blog. For each new book, editors and designers will come up with several titles and encompass options, posting them online. Authors love the result–a buffet of distinct type fonts, rejiggered subtitles, and contrasting color schemes that evolve equally new comments are posted.

To assist inform authors' marketing decisions, everyone at BK–from the senior editors to sales managers to, literally, Kathy in accounting–is invited to share his or her suggestions on the blog and elsewhere. Distributors, sales reps, and others from outside the company are invited to post comments every bit well. Dianne Platner, the production manager, sees the blog as a dramatic comeback over the traditional model. "Because we've seen the proposal, because we've met the author, because we've been there every step of the way, we know how the author wants the book to be positioned," she says.

Collecting all this feedback does have its drawbacks. Deliberations can drag on, and some authors tin can be difficult. "A lot of things that would normally take 2-thirds to one-half the time get complicated," says Michael Crowley, BK's senior straight sales managing director. Recently, one of BK's acknowledged authors went through more than than xxx cover designs before signing off on the terminal version. The exasperated graphic designer, in a playful allusion to the author'southward dominatrix-like demands, drew upward a mock blueprint featuring a black leather stiletto. Months after the book'south publication, the stiletto pic is still floating around the role. Then, of form, there's the problem of gustatory modality. After falling in love with the aquamarine and yellow characterization of a water bottle, the coauthors of ane book demanded that their volume's embrace bear the aforementioned clashing hues. BK ultimately deferred to their judgment–and the book was a flop.

Yet Piersanti figures that a few screwups are worth it if he can create a stable of happy, loyal authors who are motivated to assist BK succeed. Last yr, a third of BK'southward new writers were referred by existing authors. "Our old authors are our brain trust," says Sivasubramaniam. "They're similar our agents–they see changes in their manufacture and they spot new authors." Writer retreats, where dozens of writers come up together to share ideas, suggest speaking opportunities, and offering advice and contacts for book tours, accept resulted in projects Piersanti never predictable, cartoon publicity and edifice ties throughout the manufacture. Some writer-inspired events have included a writer-organized briefing, which resulted in the publication of a book of essays, and a marketing workshop, where some 60 authors and fundamental outsiders, such as booksellers, shared experiences.

While business books like Blanchard's and Mintzberg's are BK's bread and butter, it volition expand its new titles from 30 to 45 in 2006 and is putting out its ain nonfiction listing with socially progressive themes. One of these was John Perkins's Confessions of an Economic Striking Man, which has sold some 180,000 copies and was a New York Times best-seller.

In spite of BK's double-digit growth, Piersanti isn't worried near other houses trying to replicate his model: Bringing outsiders into the decision-making process is hard work, and incorporating authors' suggestions tin can be risky. "They do it their way, and their way is very distinctive," says Portfolio'due south Zackheim. "Information technology wouldn't piece of work for everybody." Still, the manufacture seems to be paying attention. The editor-in-primary of Random House, Jonathan Karp, stepped down in June to start an imprint that volition devote much more than time to its authors and publish just 12 books a year–one per month. Looks like someone'south reading betwixt the lines.

Lucas Conley (lconley@fastcompany.com) is a Fast Company staff writer.