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Many indies start at $2.99. It generally takes a few months for sales to get going on one's first book. If, after a few months, sales aren't as expected, some authors play with their price. Sometimes increasing it to $4.99 or so improves sales, and sometimes lowering it to $1.99 or $.99 improves sales. Every book has an ideal price point -- we don't know going in what that point is -- and it might change over time!
A $.99 book only yields about $.35 per sale to the author. When the book becomes profitable depends a lot on what the author does to produce and market it. A book with a cover I design myself becomes profitable much more quickly than one I spend $300 to produce.
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