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Old 09-22-2009, 11:19 AM   #8
Hellmark
Wizard
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Join Date: Jun 2009
Location: Foristell, Missouri, USA
Device: Nokia N800, PRS-505, Nook STR Glowlight, Kindle 3, Kobo Libra 2
I cannot account for the rest of things, but I do know that it costs between 20 and 30 cents per transaction for credit card fees, depending on the company. Other reports I've seen show a 15% best case profit margin for the ebook retailer. 15% for the retailer (who is the one covering the expense of hosting the file), 3% (if you just go with an even 30 cents out of $10) for credit card transaction, then shave off 50% which goes to the publisher. Leaves 32% for the DRM company, if the publisher's cut is not separate on the retailer's end from the author's.

These figures are all rough estimates, pieced together. Really, it seems as if there are some taking a bigger cut than they need to, if you make the same assumptions I did.
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