And now for the news!
This week in the world of self-publishing:
Because I love the juxtaposition of these two articles on Amazon in relation to self-publishing, I’m going to present them both and let the readers formulate their own opinion on this corporate conglomerate. First, we’ll start with an article by Doris Booth that analyzes the ways in which Amazon “vigorously promotes its 70% royalty plan over its 35% plan to compensate authors on the sale of their e-books.”
But, 70% is DOUBLE 35% you say. Diving deeper, however, Booth unveils how the promotion of the higher royalty package is actually misleading.
“Believe it or not, the writer earns more money on the 35% plan than on the 70% plan. Why? Because the 70% plan is based on the publisher’s net income and the 35% plan is based on the gross sales price of the book. A book priced at $9.99 based on 70% of the publisher’s net income earns you $3.15. The same book based on 35% of the gross sales price yields $3.50.” – Booth
With that in mind, and also considering the fact that amazon puts a ceiling of $9.99 for the price of the ebooks using the 70% plan, while authors using the 35% plan can pick the price at which they’d like to sell their work.
More interestingly, the 70% plan grants Amazon exclusive rights to your piece, meaning you cannot sell it on ANY other platform, even if that platform was simply your own website. You grant them this exclusivity and you receive nothing up front. That’s right, “the author who signs the exclusive deal has just given away his or her entire content for free to Amazon, at least initially,” says Booth.
Further, when/if you do get paid by Amazon, it will not be based on the sale of the individual copies of your book, but rather, on the number of pages read by those who purchased it. So if your book sold for $9.99, but the reader only got 15 pages in, “your royalties will be calculated upon how many pages of your book are read, divided by the number of other books read that month.” Booth continues on with a more staggering statistic; “In hard-to-find data, Digital Book World reported not long ago that Amazon Kindle’s monthly individual author payout equaled $1.38.” One dollar and thirty-eight cents per month, you couldn’t buy a can of Coca-Cola with that.
I would definitely encourage authors to do their research, perhaps beginning with the piece above by Booth, before deciding where to self-publish their work. If choosing Amazon, carefully read the plans and what they offer you as a client, and don’t be too easily persuaded by larger numbers that are hiding larger inadequacies as far as returns go.
One lucky author is going to receive £20,000 as the Kindle Storyteller Prize winner in 2017. “The prize is open to any author who publishes their book through Kindle Direct Publishing between February 20 and May 19 this year,” says Tristan Fane Saunders, “Entries from any genre are eligible – including fiction, non-fiction and collections of short stories – so long as they are more than 5,000 words and previously unpublished.” So, if after reading the previous article and you do decide to publish with Kindle Direct Publishing on Amazon, you could end up with a pretty big paycheck.
The incentive to offer a prize like this? Saunders seems to allude to dwindling Kindle sales and a general decline in ebook sale, “having shrunk 2.4% over the previous year.”
Whatever your opinion on Amazon might be, it has provided a streamlined way for authors to directly publish their work online. Be it for better or worse, being able to get your story published is often half the battle, and Amazon turned that battle into a breeze.
As a self-publishing author, you may find it helpful to stay up-to-date on the trends and news related to the self-publishing industry. This will help you make informed decisions before, during and after the self-publishing process, which will lead to a greater self-publishing experience. To help you stay current on self-publishing topics, simply visit our blog every Monday to find out the hottest news. If you have other big news to share, please comment below.