Writing: Serial Characters and the Book Deal

A growing number of Black Gate authors have moved on to book deals, and some were published novelists before they appeared in the magazine.
Two of us, James Enge and myself, landed book deals featuring recurring characters that had appeared in Black Gate short stories.
They were the Dabir & Asim stories for me (“Whispers from the Stone” and “Sight of Vengeance“) and the Morlock tales for James (six appearances in BG so far, starting with “Turn Up This Crooked Way” and “Payment Deferred,” and most recently the novella “Destroyer” in Black Gate 14).
Back before James got nominated for the World Fantasy Award in the Best Novel category (for his first novel, no less! — that’s Blood of Ambrose, if you don’t have a copy yet) the two of us got talking one day about the connections between magazine sales and book deals.
We decided to turn the thing into a public back-and-forth discussion about writing serial fantasy characters, starting with a look at the idea that short story successes lead naturally to selling books.
I’ve captured and condensed that conversation here for your enjoyment.

Predicting the weather is an art and a science… yes, really, it’s a science, believe me. I spent four years at Penn State University learning chemistry, calculus, physics, thermodynamics, and fluid dynamics to earn my Meteorology Degree – I should know.
Star Soldier by Vaughn Heppner, Book #1 of the Doom Star Series, has reached the Top of Amazon’s bestseller list for 
Warning: This essay contains some spoilers.
Because this series about riding about the dragon called Publishing is geared at writers just starting out writing fantasy stories and novels, I thought I’d pull together 
Sixteen of your US dollars. That’s what the latest (monster) issue of Black Gate has cost you in these days of fear and crumbling factories. It’s strange, isn’t it? You’ll spend all that money on a collection of fiction and game reviews when the internet is bursting with so much free content. If you go looking right now, you can find a million Sword & Sorcery stories out there that you wouldn’t even need to pirate: the authors, overcome in a delirium of generosity, are only too thrilled to supply them for free.