Great article as I've been wondering about other aspects of the payments to authors.
I found the below comment on that page very enlightening..
"Anonymous said...
Royalties are generally on cover price, so discounts, etc. make no difference to the author.
I've long since earned out on my first book, published in 2005. It's now out of print, but in ebook and audio format - good thing, because I'm raking in the cash. Last royalty check from my agent was $.48.
Yes, that's right - 48 cents.
Dayam, it's good to be published.
Wednesday, May 20, 2009 11:12:00 PM "
So, if I've understood this correctly... wouldn't an author earn much more by selling from their own site? Sell at $5 internationally and it is pure profit? (sell only 2,000 ebooks @ $5 would be $10,000)