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Last time I looked, the Smashwords FAQ mentioned that the royalties on books sold on other websites are based on the suggested retail price, so if I read it right, lowered prices on Kobo and Amazon should still give an author the normal royalty (as would someone lowering prices for one purchase with a coupon).
Does anyone know for certain either way?
Or what Amazon does in this case if the book was placed on Amazon directly, rather than via Smashwords?
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