Fictionwise pay 50% of the list price to the publishers. So you'd think they're losing money on a 50% rebate with 15% club discount and 5% eReader rebate. But not so.
Why? because when you spend the micropay you don't get the discount.
Suppose you want to buy three books, each costing $10.
(e.g.
http://www.fictionwise.com/ebooks/eBook25136.htm
http://www.fictionwise.com/eBooks/eBook65249.htm
http://www.fictionwise.com/ebooks/eBook8075.htm)
Now, you're a member of the buywise club (15% discount) and they're on 50% rebate, and you're buying secure eReader format (5%)
You buy two with a credit card. That costs $17, and you get back $9.36 in micropay. (9.36 = 4.25+4.25+0.43+0.43: 50% - 4.25 on each book and 5% - 0.425 rounded to 0.43 on each book)
Then you buy the third with your micropay rebate - that costs $8.50 in micropay.
So - you end up with three books for $17, with $0.86 in micropay left
Fictionwise pays out $15 to the publishers
Fictionwise end up with get $2 - eventually $1.14 when you finally spend that micropay. Oh - and a very happy (repeat) customer.
I suspect that on the 100% micropay rebate they might have a deal with the publishers.
Essentially, 50% rebate is "3 for 2" and 100% rebate is "2 for 1"
Quote:
Originally Posted by FizzyWater
I just don't see how they're making any money, though...
I just bought $203.00 worth of books...and, after the 50%, plus the 5% for buying the first day and 5% for buying eReader (and I think two of the books were 100% rebates), I got a rebate of $163.00.
Who takes that hit? Is it Fictionwise? Do the authors/publishers "lose" a part of the cut? I have to think it's like Amazon's $9.99 "loss-leaders" - and Amazon is taking the loss, but it feels like I've been getting deals like this from Fictionwise for about the last 6 months.
I just hope it's not at the authors' expense. I want them to keep writing!
|