FAQs: Going Digital with Diamond
As previously announced, Diamond Comic Distributors' new Diamond Digital division and iVerse media have partnered to empower brick-and-mortar comic shops to sell day-and-date digital editions of comics to sell exclusively at comic shops for 30 days for about $1.99 as well as “digital PLUS” editions – digital copies available with the purchase of a hard copy – expected to sell for $.99.
If you've been wanting definitive answers about this new division and its services, you may find the answers to the below list of Frequently Asked Questions enlightening!
Diamond Digital Key Highlights:
- Diamond will enable brick-and-mortar comic shops to sell digital comics.
- Shops will make 33% on the SRP of each sale.
- No up-front inventory risk or carrying costs are required.
- Day-and-date and/or enhanced versions of new digital comics sold in comic shops will be exclusive to those shops for 30 days.
- Retailers with websites will be able to sell back issues as well.
- Each week, shops will print out codes and sell those codes to their customers to redeem for digital comics.
- Retailers will only be billed for codes that are redeemed.
1. What is Diamond Digital?
It's a new division of Diamond Comic Distributors, Inc. with a mission of empowering brick-and-mortar retailers to sell digital goods while driving as many digital comic purchasers as possible into retail shops.
2. How will my brick-&-mortar business benefit from selling digital comics through this program?
Direct market digital distribution will diversify your store’s offerings and put money in your pocket at no financial risk.
We believe comic shops thrive based on much more than just an ability to sell new comic books. The value proposition of your store to your customers is a complex combination of service, recommendations, community and the excitement that comes from finding a new series, a missing issue, a cool toy or someone to talk with about the world of comics – including digital comics.
One of the most compelling benefits we believe digital comics can offer you is the ability to sell a huge universe of items for which you have no up-front cost. These are items you already know, love and understand how to sell; they're just in a virtual form that takes up no physical space, can't get damaged and are never out of stock or out of print.
By enabling you to make a fair margin on the sale of digital goods we believe we can help offset any disruption in print sales patterns that may be caused by the growth of digital comics. In short, we don’t believe digital comics are going to go away and we want to help you prosper from the changes.
3. What digital content will I be selling?
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We can enable you to up-sell selected day-and-date (or recently printed) digital PLUS versions as companion pieces to a physical comic purchase. For example: A consumer buys a comic. You then say: “Hey, you can also get a digital PLUS version for an extra $0.99. Since you're buying a print copy, you qualify. If you pay for the PLUS version too, we'll give you a code for a digital edition."
- We can enable you to sell selected day-and-date (or recently printed) digital comics. For example: A consumer wants to buy a title, but your shop is sold out of the print edition. You can say: “Hey, there’s a digital version available for $1.99.” This gives the customer a reading copy while they wait for a reorder to arrive.
4. How do I get the codes? Do I have to advance order them?
No ordering is required. You just use your normal Diamond Retailer ID to login to the Diamond Retailer Services Website (or, for Diamond UK customers, http://www.diamonddigital.com) at least once a week. There you can customize and create weekly PDF sell sheets you can download. You'll also be able to generate unique redemption codes for print on paper or sticker-style labels. Please Note: These codes will be "live items" so their physical security will be your responsibility. So you can print codes ahead of time, or go in and generate them on-the-fly when you make a sale. Once a code is “redeemed” by your customer, you will be invoiced for 67% of the SRP the following week.
5. Can a code be used more than once?
No, once a code is "redeemed" by your customer in a particular app, it's retired and will never work again.
6. What about digital comics back issues?
Diamond and iVerse will create an extended platform that you can add to your existing web site to offer you thousands of digital comic back issues to sell at no risk. You will take payment on your site and only be billed for what you sell.
7. Can the program be customized to the needs of my store?
Yes! You have the option not to participate in any part of the program, down to a flexible, item-by-item basis. For example, let's say you're overstocked on a particular print comic. You'll have the flexibility to leave the $1.99 digital version off your custom in-store sell sheet. If and when you sell out, you can always reinstate that option and print out another copy.
In another example, if there's a digital back issue we make available through you, but you have a pile of the physical copies to sell, just unselect that digital back issue and it won't appear on your web site.
Every aspect of this program has been and will continue to be customized to the needs of the brick-and-mortar comic shop.
8. Do my customers need any kind of software or "app" to read the digital comics I sell?
Yes, the Comics + app from iTunes, available for the iPhone, iPad through the iTunes store and available for the web/desktop from http://www.comicspl.us. Coming soon to Android and other platforms.
9. Does the Comics + app cost any money?
No, it's free.
10. Will there only be comics available for sale, or will Graphic Novels and Trade Paperback content be included?
We expect that long-form content like graphic novels and trade collections will make up an expanding part of the digital sales offering as the material is converted. This will give you higher ticket items to sell.
11. Do digital comic sales count toward my Diamond and/or publisher discounts?
No, they don’t. The ability to sell digital comics is provided to you by Diamond and our publishing partners at no up-front cost, and with no inventory risk. This makes the sale totally different than the arrangement you use to buy physical comics and items from Diamond.
12. Will my Diamond invoice be loaded with separate line items for all the digital comics I sell each week?
No, your digital sales will be grouped together.
13. Will there be reporting so I can track my digital comic sales individually?
Yes, we will provide a robust range of flexible reporting features that will enable you to match sales to invoices and much more.
14. Will these features work with ComicSuite?
Yes, but we're not absolutely certain we'll be able to finish the ComicSuite integration before the launch date of early July. When they are integrated we expect them to work as another form of "Special Order," a term familiar to ComicSuite users. The Redemption Code would print right on the customer's receipt.
15. What kind of sales support will Diamond provide?
When there's an exclusive version of a digital comic planned, that info will be included in the PREVIEWS solicitation material. Keep an eye open in the May 2011 PREVIEWS for the first July-shipping digital comics.
In terms of materials, we're planning window clings, header cards, shelf talkers and a special one-per-store acrylic stand-up display to be used at the point-of-purchase to hold the newest sell sheet.
16. Is this program for U.S. Retailers only?
No, it's a worldwide initiative. International retailers will access the same features and functions as U.S. customers.
17. Will I need to charge sales tax on digital comics?
Collecting state and local sales tax on digital comics you sell within your store is generally required. Digital comics sold on your web site will need to be taxed if the purchaser lives in your state (as on eBay). Currently, digital purchases made from out-of-state customers need not be taxed as no "nexus" is created. Please Note: These are loose guidelines. Laws can vary widely from state-to-state and locality-to-locality. Consult your tax attorney or tax preparer for specific rulings applicable to your operations. Internationally, VAT (Value-Added Tax) may also be an issue to consider.
18. What do I do if a customer has trouble redeeming a code I’ve sold them?
The system we’ve developed for delivering your customers digital comics is based on the best of high-availability technology. The most likely reason for a code to fail to redeem will likely be a simple typo on the part of the customer when entering the code. Please ask the customer to enter the code again. If the digital comics platform still says the code is not valid we will provide a Customer Service Technical Support contact to take over from there and make sure your customer promptly gets the digital comic(s) they’ve purchased.
Publishers Planning to Offer Products through Diamond Digital Currently Include:
Digital comics are creating new opportunities to grow the comic market. Diamond Digital’s new program empowers your business to grow with it by providing you with the tools to easily – and profitably – sell digital content in your store!
Have pressing questions about Diamond's digital efforts that weren't covered above? Email Dave Bowen, Director of Diamond Digital, at bdave@diamondcomics.com.
Retailers will have an opportunity to learn more about this initiative from Bowen and Michael Murphey, iVerse CEO, with the recently announced Diamond Digital Panel during Diamond's Retailer Summit in Chicago this March. See you there!
