$.99 eBook becomes biggest earner
 

An independent author's perspective on eBook pricing -

http://news.slashdot.org/story/11/03...-Books?from=fb





PCH

I am a little puzzled:

350,000 downloads at $1 (let's make it round figures) means sales of (obviously) $350,000. 35% of $350,000 is $122,500. Where does this figure of "well over $500k" come from?

I guess it's a projected annual income based on two months of sales.

Graham

While it might seem a bit restrictive to limit your content provider's pricing options, mandating that all authors sell their books for 1 dollar might be an interesting option for booksellers to consider.

This would create an extremely level playing field, debates about the worth of a particular purchase would be non-existent.

Popular authors such as those in the article, have had success at this price point. This small price model is probably best suited to a direct writer to reader relationship.

It would also bring us one step closer to a copyright free world, where all books are freely traded and compensation comes in the form of donations after the fact of reading.

:book2:

It says, "...since January 1st of this year, which, with a royalty rate of 35%, is an annual income well over $500k." and is dated today so I think they are projecting sales at that rate through the end of this year. Does seem a bit fantastic.

I also notice he has several books at that price. Perhaps they are including them all.

That would explain it. Thanks - I'd missed the word "annual".

As long as it entertains me.

The article does offer some hope for reduced prices and the reason for the $$$ income does make sense. I looked over several of his books and was tempted on one. Dropping a buck is no longer much of an expense, only about 6 miles of driving and 1/5 the price of a decent cigar.

Keep in mind John Locke's two books on Amazon's list are only 200 pages long or about 50,00 words.

Edit: I checked on Smashwords and they are less than 42,000 words.

do they get 35% for $.99 books? i thought there was a staged rate where they got less for books priced under $3?

According to this article about the success of young Amanda Hocking http://www.usatoday.com/life/books/n...oks09_ST_N.htm they get 70% of the price at $2.99 or more and 30% at $.99

That's quite a cut. Why doesn't he also sell in iTunes and get 70%?

Marginal cost = price => Profit maximization

At that price, you start to get a lot of the impulse buys. At higher prices, people start thinking more about whether or not they want it.