Inside a BOOK auction - Planet Money Recap
Podcast: Planet Money
Published: 2026-03-21
Guests: Alex Goldmark, Laura Nolan, Jane von Marin, Tom Mayer
What Happened
Edward Jones has been navigating the financial landscape for a century, reflecting a long-standing history of resilience and adaptation in the financial sector. Books, described as one of the most influential technologies, have shaped ideas and markets over time, paralleling the significance of financial entities like Edward Jones.
Planet Money has a rich history of engaging in participatory projects, such as making a t-shirt, buying a barrel of oil, and even designing a board game. Recently, literary agents Laura Nolan and Jane von Marin approached Planet Money with the idea of creating a book, following their success with projects like a book about women in music and a crossword book for 'Wait Wait Don't Tell Me.'
The book proposal process is intricate, involving the creation of a business case to attract publishers. The publishing industry is heavily dominated by the Big Five, but independent publishers like WW Norton, known for books like 'Fight Club' and 'Moneyball,' also play a crucial role. Tom Mayer, an executive editor at WW Norton, receives about 500 proposals annually, signing only about 2%.
Planet Money's book proposal was sent to 23 publishers, an unusually high number, and involved setting up 23 half-hour Zoom meetings. The auction process was a two-round best bid auction, also known as a wedding cake auction, where Tom Mayer strategized to progress to the second round.
Sales projections are critical in these auctions, using comps like the '99% Invisible' book, which became a New York Times bestseller. However, there's a concern about the 'winner's curse,' where the winning bidder might overpay due to the competitive nature of auctions.
The final round of the auction, termed the 'beauty contest,' assesses the chemistry between the author and the publisher. Norton offered unique benefits, such as including the book in educational courseware, which could enhance long-term sales.
The winning bid for the Planet Money book was over a million dollars but less than two million, significantly higher than the average major book deal advance of $60,000. Alex Goldmark, Planet Money's executive producer, ultimately decided to go with Norton due to their compelling offer.
Key Insights
- The publishing industry is dominated by the Big Five, but independent firms like WW Norton still make significant contributions. This concentration means that only 20% of books generate 80% of the industry's revenue, highlighting the high-stakes nature of publishing.
- Planet Money's book auction involved 23 potential publishers, a large number for such proposals, and garnered 16 bids. This high level of interest underscores the competitive nature of book publishing auctions.
- Tom Mayer from WW Norton considers the use of comparable titles (comps) as a necessary evil in predicting a book's success. Books like '99% Invisible' are used as benchmarks to estimate potential demand, demonstrating the challenges in forecasting book sales.
- Norton, an employee-owned publisher, offered to integrate the Planet Money book into educational courseware, which could lead to increased sales and broader reach. This strategic advantage helped Norton secure the deal over competitors with deeper pockets.