To reply or not to. This is a huge debate between authors. Some like the hands on approach with readers and reviewers while others step back and allow things to happen with due time.
I'm a hands off author. I don't push for reviews and I never reply back to reviewers. The only exception I would ever make is if asked a direct question that I could easily answer and even then I'd be reluctant to reply.
There are plenty of ways to contact me if a reader desires to do so. I believe there are appropriate places to reply or to engage with readers and reviewers. For example, a website, through Facebook, twitter, and even Goodreads.
Trust me when I say I would love to reply back to reviews. I would love to be able to thank the ones who have left great reviews and trust me I'd love to reply to those that aren't so great, but that isn't very business-like in my opinion.
I'm grateful for each and every review I receive. They are a blessing in this business, good or bad. In my case they help me refine my writing. They help me become a better writer and they sometimes help me grow a thicker skin.
To learn from them is honestly all I believe you should take from reviews.
All too many times replies have gotten authors into worlds of trouble. Sometimes it's a sure way to ruin your name. But on the other hand I've seen it boost an author's reputation. For some it might work but not for all. It's like anything you do, it has it's fair share of risks.
Those risks aren't something I personally would like to take which again is why I steer clear of replying.
As for pushing for reviews I'm not so keen on that either. I know there are lots of bloggers out there that love to leave reviews but again it's a risk. No one likes someone who pushes too much. And lets be honest no one wants to receive bad reviews.
I allow my reviews to come as they come. I'm also terrified of pushing my work out there like that. I don't want to be like 'here read my book!', 'read it now!'. I want readers to stumble across my work. I want my readers to be so moved that they just have to leave a review. That's my goal.
For right now it doesn't bother me one bit that reviews trickle in. Each one makes my day when they show up. I understand that it can be nerve wracking for some though especially when it's pushed down our throats that the more reviews we have the more you'll sell. In my experience it's not true. I have books that have no reviews at all and they sell more than the ones that have plenty. I even have one that sells better than the rest and the star rating is low. It blows all of that talk about reviews equaling sells right out of the water.
I could argue these facts until my face was blue but I'm not going to. Like I stated before one path might work for some but not for all. Each path we take is going to be different.
No matter what comes your way it's always good to stay calm.
Another thing to remember is that in this business bad publicity is just that, it's bad. You don't want to end up on one of those author behaving badly lists.
Over the last two years I have learned a lot. I'm constantly learning still and as I continue on I will learn more. The best advice I can give to anyone starting out is to be cautious and be smart about what steps you take.
In the end make the choice that you believe is right for you and the path you want to go. And remember some things might work for some while some things only work for others.
Give it your all and hopefully you will succeed.
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Good Luck and Happy Writing :)