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Kindle Royalty Percentage
by Ron Kurtus (2 July 2012)
You can set your royalty percentage of Kindle e-books sold at either 35% or 70% of your selling price, depending on the price range of your e-book. There are restrictions for books sold in Europe.
Questions you may have include:
- What are possible list prices for your Kindle e-books?
- How are the royalty percentages determined?
- When can the e-book be free?
This lesson will answer those questions.
Price of e-book
You can set the price of your e-book between $0.99 and $200 (or the comparable British or Euro values), depending on your marketing strategy. Special offers of providing the book for free ($0.00) are also available.
Setting the price low may result in more sales, but it also can reduce the impression of value or quality. Setting the price too high can chase away customers.
It particularly galls me to see large publishing companies offer e-book versions only a little less than their hardcopy versions, especially since there is no real printing and distribution costs for the e-book.
Royalties
The royalty percentage of your selling price can be with 70% or 35%.
70% royalty
If you price your e-book between $2.99 and $9.99, you can select the 70% royalty option. Certain countries require the 70% royalty rate.
There is also an electronic delivery charge of $0.15/MB from the American Kindle store. That means that if you have a very large file, such as 10MB, your delivery fee would be $1.50. Most Kindle books are under 1MB in size.
35% royalty
If you price your e-book between $0.99 and $200, you can select the 35% royalty. However, if the price of the e-book was between $2.99 and $9.99, it would be foolish not to take the 70% rate.
Giving book away for free
In certain situations, you may want to "prime the pump" on your e-book sales by offering the e-book for free for a limited-time free.
Summary
You can set your royalty percentage of Kindle e-books sold at either 35% or 70% of your selling price, depending on the price range of your e-book. There are restrictions for books sold in Europe.
Think positively
Resources and references
Websites
Books
Top-rated books on Self-Publishing
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kindle_royalty_percentage.htm
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Kindle Royalty Percentage