Kindle Authors To Receive Bigger Cut Of Sales

by Greg on January 20, 2010

Amazon announced today that it will be giving authors and publishers who use the Kindle Digital Text Platform (DTP) a 70% cut of sales on their books. The 70% is after delivery costs which come out to be about only 6 cents per book. This means that if a Kindle book is sold for $8.99 the author will get about $6.25 as opposed to the current rate of $3.15. This option is in addition to the current DTP standard royalty option and will become available on June 30, 2010.

There are some requirements to be able to get this new 70% royalty. Here they are, right from Amazon:

* The author or publisher-supplied list price must be between $2.99 and $9.99
* This list price must be at least 20 percent below the lowest physical list price for the physical book
* The title is made available for sale in all geographies for which the author or publisher has rights
* The title will be included in a broad set of features in the Kindle Store, such as text-to-speech. This list of features will grow over time as Amazon continues to add more functionality to Kindle and the Kindle Store.
* Under this royalty option, books must be offered at or below price parity with competition, including physical book prices. Amazon will provide tools to automate that process, and the 70 percent royalty will be calculated off the sales price.

In addition to these requirements, the books also need to be in-copyright and the new royalty option is not available for books published before 1923 (public domain). At the time that this new royalty option goes into effect it will only be available for books sold in the United States.

The reason for Amazon doing this could be due to all the buzz regarding Apple’s new tablet that’s supposed to be unveiled on January 27, 2010. Also, as pointed out at Media Decoder “Amazon’s move is also a clear bid to woo authors away from traditional publishing houses” since they’re trying to get authors to self publish using their Kindle Digital Text Program.

It should be interesting to see how everything shakes out in the ebook, ereader, publishing industry in the next few months with all the new ereaders that are available and also the ones that are coming out soon.

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{ 1 comment… read it below or add one }

1 Ruby Fields March 4, 2012 at 11:08 am

How does an author go about submitting a book to Kindle?

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