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Issue link: http://digital.canadawide.com/i/526329
it's been a rocky ride for the world of publishing in recent years. The merger of Random House and Penguin created a behemoth that shrank options across the board—for authors and agents look- ing for deals, and for small publishers struggling to compete. The indepen- dent North American bookseller has all but disappeared. Newspapers, hit hard as well, have drastically cut back the space devoted to book reviews. As for the ebook, it's still largely undecided as to whether it's a publisher's blessing or hindrance. And then, in the fall of 2012, Douglas & McIntyre—Canada's largest indepen- dent publisher at the time—announced that it had entered bankruptcy protection after 40 years in busi- ness. By year's end, the company had busted apart, with Victoria-based Harbour Publishing buying and re- organizing D&M and Heritage House purchasing its Greystone imprint. While the demise of D&M was a sad chapter in Canadian publishing, for a pair of small Vancouver compa- nies that rose from its ashes, there's life after death—and a profitable one at that. In the months that followed the bankruptcy, D&M's former chief operating officer Jesse Finkelstein and publisher Trena White came up with an idea for Page Two Strategies, which combines a full-service literary agency with limited publishing ser- vices. Around the same time, D&M's former custom publishing head, Chris Labonte, and sales director Richard Nadeau formed a company called Figure 1 Publishing: a full-service trade publisher devoted to custom projects such as business and art books. Finkelstein tapped into the idea for Page Two after having lunch with marketing strategist and author Rikia Saddy. Saddy expressed a need for more comprehensive support that went beyond the usual agency representation. "It wasn't obvious to her that she should just contact another marketing person or publicist," says Finkelstein, 38, who had worked her way up to COO after running D&M's digital assets and foreign rights. "She needed strategy more fundamental to the publishing experience. I came back from that lunch convinced that there was something in that." Finkelstein and White discussed the prospect of a literary agency with a non- traditional twist and were soon galva- nized by the realization that there was a huge market void for such a hybrid. "I was really excited to start something that could change as publishing changes," says White, 38, who, prior to D&M, spent six years as editor at Toronto's McClelland & Stewart. "We really wanted to be flexible and not stuck in a model because things are changing so quickly." By contrast, the guys at Figure 1 didn't have such an obvious aha moment. For them, it was a natural progression from what they'd already been doing. Labonte, 42, had headed up D&M's emerging cus- tom content imprint and knew he was onto something that could grow; Nadeau, 56, is a 13-year book industry veteran who had specialized in selling high-end art and architecture books. Once the two had been cut loose, it was a no-brainer to focus on both the art books and the cor- porate business books at Figure 1. Says Labonte: "We took that aspect of what really worked at D&M, which was mostly beautifully illustrated books and books on corporate history." Despite the rise of the ebook and Amazon, both Figure 1 and Page Two remain true to the printed book, which still holds significant cachet for anyone who has an idea or product to sell. Page Two has signed five book deals in its first year, including a deal involving a posthu- mous Carol Shields book with Random House; all books are both print and digital. Meanwhile, Figure 1 has signed 40 book deals in two years—both print and digital. Trade publishing is key to Figure 1's business model. "A book still has huge credibility," says Labonte, who held several positions at D&M, including associate publisher and acquiring fiction editor. "And it's another way for a business to extend their brand." it's been two years since Figure 1 launched and more than a year for Page Two. Although they are still defining themselves as they go, both companies started generat- ing a profit early on. They've set up offices, with Figure 1 operating from a new 800-square-foot space at West 6th near Cambie and Page Two in a smaller space at West Broadway and Ontario. Labonte and Nadeau have hired three staff, including a market- ing manager, managing editor and creative director. Page Two just hired a part-time project manager based in New York. Both companies are look- ing toward expansion this year, in the U.S. as well as Canada. Adapting to a quickly transform- ing landscape and reducing risk have been key. Figure 1 operates as a tra- ditional publisher, offering services such as editing, design, distribution and marketing for their high-quality art and architecture books, as well as the books geared toward a specific busi- ness, such as cookbooks and corporate history books. Their model does not involve paying risky advances against royalties. That's because the majority of their clients operate service-based businesses and have a built-in market. "If you can partner with somebody who can sell directly to their patrons, you are getting more direct sales that way," says Labonte. "It doesn't depend on tradi- tional trade sales." 46 BCBusiness july 2015 t r a de publ ishing is key To figure 1's business model. "A book still has huge credibility, and it's another way for a business to extend their brand," says Chris Labonte