Quote:
Originally Posted by Fbone
We don't know what is their "full royalty rate."
They are earning less than a dollar per book (minus transaction fees) and still offer full royalty rates. How can they accomplish that?
I'm wondering if they have an immediate cash flow problem.
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Baen manages to distribute hundreds of ebooks for free, allows the Fifth Imperium CD collection to be shared openly, sells ebooks in bundles, and encourages people to share them with each other. They don't seem to have a cash flow problem.
This is another company that seems to have realized that low-cost ebooks can boost its print sales. Paying the authors full royalties means they'll take a hit on some of those bundled subscriptions--but not all, because some people will sign up, and download a book or so per month, which gives them plenty of money to pay the authors. For the rest, they can consider it as promotional costs; they'll reach a great many readers who otherwise wouldn't be considering their books at all.