Each time I talk to an author for the first time, I’m blown away by the very thoughtful questions I get asked. More than 72% of writers in the romance genre are self-published, which means each has effectively taken a hands-on crash course in running a mini business selling and distributing their own stories.

One reason for the third degree is that several online publishers and distributors of romance and spicy stories have existed in the past, most of which struggled or ultimately failed. The success and failure of these platforms often had less to do with reader demand—which has always been strong and only getting stronger—and more to do with business models, external factors like censorship, market competition, and platform (mis)management. Over the years, authors have joined (and left) many a platform that failed to deliver.

All Romance Ebooks (ARE) unexpectedly shut down in 2016 due to financial insolvency, Siren Bookstrand failed to adapt to the shift towards more flexible self-publishing platforms, and Ellora’s Cave shut down in 2016 due to mismanagement and a failure to adapt to self-publishing. Then there’s Literotica that launched in 1998, and while it’s still operating, demand is flat because authors can’t monetize their stories. Smashwords once thrived by providing indie authors a place to sell romance and erotica, but after their acquisition by Draft2Digital, they’ve been unable to keep up with Amazon’s marketing and distribution networks. And there’s Scribd, which removed its erotica catalog in 2014 due to a flawed business model.

How will Theo be different?

As an award-winning author and someone I respect immensely recently reminded me:

To authors who want to learn more about Theo, I hope you’ll take a few minutes to read this post and, if you like what you read, schedule a time to chat.

1. What does Theo stand for?

   Theo stands for “The O”; we are all about the spice. Platforms like Amazon, Barnes & Noble, Tumblr, Medium, and Patreon ban or censor spicy stories due to a combination of legal, financial, and reputational concerns. They’ve caved to pressure from payment processors, app stores, and governments and to protect brand reputation. This has created a tremendous opportunity for a niche platform like Theo that is more lenient with spicy content and offers a space where authors and readers can freely discover and read across a broad range of spice levels. We’re here for it :)

2. What makes Theo different from other platforms?

   It’s simple. Readers can discover curated, well-written stories by some of the best romance and smut writers of our generation, in exactly the fantasy they have in mind ranging from mild to extra spicy. Authors get all the tools they need in one place so they can focus on writing without worrying about editing, designing, and marketing.

   All these features are great, but they’re not what truly make us different - any determined party can do the tech. The real reasons that set Theo apart are:

    

   • We are co-creating the platform with authors so we don’t repeat the mistakes of the past. If a platform can’t help authors make a living, it cannot survive long-term. It’s as simple as that.

   • Theo’s team has a track record of growing successful businesses. I’m a three-time CMO and have been leading marketing teams for more than 20 years. I’ve advised more than 15 startups on their growth strategies. Theo’s advisors and founding authors include some of the most consequential (romance and spice) authors of our generation, including Rachel Kramer Bussel, Cecilia Tan, Sinclair Sexsmith, and many more who are bringing their entire backlist to Theo, as well as newer (but talented) writers.

3. How do readers discover stories on Theo?

   Do you know any major for-profit platform that allows readers to search for stories by romance sub-genre and also by kink? To find stories by spice level but also filter them out by content warning? Theo’s dark, moody, and “classy” interface and low-cringe book covers will encourage readers to freely share stories they’ve enjoyed reading with friends without embarrassment. This is critical in an industry where censorship across every major social network is endemic, and word of mouth is the single most reliable path to growth.

   The #1 thing that North Americans want is convenience. Yet, not a single platform that exists today is simple or convenient to use. Theo will be radically easy to use.

4. How do authors get paid?

   It depends on how their stories are read.

   • Free stories: No royalty.

   • Pay-as-you-go: Authors get 70% of the list price for exclusive stories and 35% for non-exclusive stories. Authors who join Theo before we launch publicly (“Founding Authors”) and publish ten or more stories on Theo get paid on a sliding scale for non-exclusive stories:

     • 50% of list price in year 1

     • 40% of list price in year 2

     • 35% of list price after year 2

   • Stories read as part of a (reader’s) subscription: Each month, a royalty pool will be set aside and funds allocated from it to each story based on three factors:

     • 70% of funds will be allocated based on completed reads (a story is considered a “completed read” if at least 50% was read)

     • 30% of funds will be allocated based on a combination of number of reviews and the average rating for the story.

5. That’s great, but can we find a credit card processor to work with?

   Most credit card processors categorize many female-facing brands, including those catering to female health, sex toys, and stories, as high-risk businesses. So, they either refuse to work with such businesses or charge a prohibitively high fee.

   Fortunately, we have deep connections in international payments. My partner is a veteran of cross-border payments, and Theo has benefited by being able to work with “friendlies” who treat us like any other business. This levels the playing field for new platforms like Theo, which compete with legacy brands like Amazon and Wattpad.

6. What about marketing?

   Remember how I said I’ve been leading marketing teams for over 20 years? I’ve built my reputation on working hard and smart. Marketplaces like Theo are my jam: I’ve helped drive +55% of revenue for a major online retailer, helped another online marketplace double annual revenue, and advised several consumer e-commerce brands.

   But is that enough in an industry where social networks and “big tech” aggressively ban, shadow ban, and censor smut? We’ll see. So far, we’ve posted about “the O”, discussed the Kamasutra, and shared smutty audio readings in drag. Our ability to match music to post is unmatched - suggestion is a powerful weapon. And we’re just getting started - we haven’t even launched yet!

7. We are human.

   As a woman of color, I understand how important it is to feel like we belong in the spaces we occupy. Theo is for all readers and authors. The heteros and the queers. Every color, race, background. Everyone belongs on Theo. Of everything I’ve talked about above, this may be what I’m most proud of.

If this resonates and you’d like to learn more, message us on Instagram or grab some time in my calendar to chat. I’d love to talk.