Spokane-based startup Chapterly Inc., a web-based writing and self-publishing platform that incorporates artificial intelligence tools, will launch a new version on April 4 that will enable subscribed authors to engage with readers and monetize their stories.

“We basically are building a way for authors to engage directly with their readers—and for their readers to communicate with each other,” says Mark Harrell, founder and CEO of Chapterly. “It almost feels a little more like a social network, but its focus is audience building and monetization of the author.”

In its current form, Chapterly, which was founded about three years ago, is geared toward authors and bundles together a variety of authoring tools that can be used on one platform.

Right now, the web-based app is equipped with writing tools that have spelling and grammar-checking capabilities, collaboration tools to share stories with editors and co-authors, and cover design tools with an extensive royalty-free image library. It also includes organization and planning tools, unlimited print- and digital-ready exporting, and an AI-powered writing assistant.

“In a lot of ways, we’ve been really in beta for these past three years, making sure that our authors have the best possible tooling,” Harrell says.

Chapterly currently has about 2,800 subscribed authors.

The company has four full-time, remote software engineers, but Harrell says he hopes to build a regional team with a physical office space in Spokane eventually. Chapterly also contracts with a small third-party group that provides support services.

The new version of Chapterly will introduce audience tools to the platform, adding in layers of fan engagement, e-commerce, and monetization, Harrell says.

“This new version is going to enable an author to connect their Stripe account, build a beautiful profile, invite friends and family readers, and engage with them,” Harrell says. “They’ll be able to release content into tiers, and then they’ll be able to start monetizing right away.”

Stripe Inc. is an online payment services provider that will be used to process payments on Chapterly.

In the new version, authors will be able to set up free or paid tiers that readers can access. Depending on how authors decide to set up their tiers, they can keep readers updated on the writing process, offer early chapter releases, or offer more exclusive experiences like one-on-one time or the chance for readers to name characters in a story, for example.

Readers can subscribe directly to authors they like on Chapterly.

“(Authors) get to build an audience; they get to release sooner than normal,” Harrell says. “We’re pushing this early release, publishing, and feedback model."

The early-release concept allows authors to start building an audience, receiving feedback, and shaping their story and narratives around that feedback as soon as they write the first chapter of a story, Harrell says.

Authors also can publish and sell their completed books if they don’t want to offer early releases.

Chapterly is intended to give authors an alternative to traditional self-publishing models, Harrell says.

“Authors can literally start releasing their product on day one,” he says. “You write your chapter on day one, release it, and start building a following.”

With the ability to start earning revenue as soon as the first chapter, authors can create engagement and build a following as they go, which leads to a more predictable revenue pattern, Harrell says.

“The number one problem authors have is they don’t sell a copy,” Harrell says. “It’s because they don’t have a following yet. Nobody really knows who they are. I think this really helps the early-stage author.”

While the new version of Chapterly will give authors a different way to release their content and engage with fans, it will also bring readers a unique experience, Harrell says.

“We’re going to be building a consumer experience for readers where they can read in unique ways,” he says. “They’ll be able to engage with the writing in ways that haven’t really been done.”

Chapterly’s AI capabilities also will be expanded under the new version.

AI-powered image generation will be available following the launch, Harrell says, giving authors the ability to create images using AI for cover art or imagery within their stories.

Chapterly also will use AI tools that give feedback and analysis on writing, says Harrell.

“That’s where I think a lot of the value in AI is today—these really specialized things that you can bounce ideas off of and maybe get a little help when you need it,” he says.

The AI tools currently available on Chapterly are intended to help spur ideas and enhance authors’ writing, generate characters within a story, and come up with title ideas.

Authors aren’t able to use the AI tools to write entire books on Chapterly, Harrell says.

“AI will never fully write the stories on Chapterly,” he says. “AI is always optional, but the AI and the author will always be able to work together to write the best stories.”

As AI technology continues to evolve, there are concerns in some circles about the ethics of using AI tools for writing stories, because some AI models draw from other authors’ work to generate new content.

“We’re trying to be super careful about how we use AI,” Harrell says. “A lot of these models were trained using stories written by authors.”

Chapterly will charge a 10% platform fee for content sold through its platform, however authors retain 100% ownership of their work and aren't bound by any exclusivity clauses, Harrell says.

Authors also pay a monthly subscription fee of either $9.99 or $14.99 to use the Chapterly platform. The higher price point gives authors more AI words they can use.

Readers won't pay a subscription fee to use Chapterly. They can join for free and decide which authors they’d like to subscribe to, and which tier levels they’d like to pay for.

Additional plans are in the works for the self-publishing platform that will follow the release of the new version, Harrell says.

The company plans to provide a feature that allows authors to go live for readings online, similar to how an author would hold a live reading at a library or bookstore.

A tipping feature also is expected to be added at some point, in which readers can tip authors. For example, if a reader really likes a particular passage in a book, they can highlight that passage, comment on it, and leave a tip, Harrell says.

“We think all those little micro-interactions are super important where readers can discuss in a passage, comment in a passage, express themselves through things like emojis and liking,” he says.

Harrell hopes to partner with printing companies eventually for authors who want to sell print editions of their books.

“The hope is that we would work with somebody that could solve the printing and drop shipping and getting it to the end reader quickly,” he says.

Harrell's long-term goal is for Chapterly to become more of a traditional publishing company, while still offering all the authoring and audience tooling, fan engagement aspects, and self-publishing capabilities that it currently offers or will offer starting next month.

“We’ll understand what makes a good author, what makes a good story,” Harrell says. “We think that all of the engagement and data that we’ll pull during that process will enable us to find out who we want to enter into more traditional publishing agreements.”

About 1 1/2 years ago, Harrell moved to Spokane from Austin, Texas, where he originally founded Chapterly.

He had opened a coffee company, worked for a software company, and started another freelance writing-based company, which he later sold before building Chapterly.

Harrell’s idea for Chapterly derived from his passion for technology and his joy of writing, he says.

“I’m not a published author, but I do enjoy writing,” he says. “The thing that makes Chapterly so exciting to me is it’s creative. I get to help artists or people who have a story to tell.”