37signals is a web 2.0 company behind several successful web applications. They’re also professional, successful, published authors. About a month ago they self-published a PDF-only book about their software philosophy, Getting Real, which they sold only online for $19 (you could also buy a 10-copy license for $50). In 30 days they’ve sold 5,750 copies and raked in $120,000.
If this is your test case for online publishing, it’s the best possible scenario. Getting Real is very well written, edited and layed out. It’s no amateur job. 37signals also has a built in marketing base of eager buyers. So publishers don’t need to be shaking in their boots just yet. But they better be paying attention.
Stories like this make me happy, though I think it’s much more difficult to be successful going this route if you’re writing fiction unless you’re already an established name. Stephen King could pull it off. I doubt I could.
The reason that book sold well is because everyone that watches 37signals knows those guys are frickin’ geniuses, and know they have a lot to learn from them. I bought a copy myself.