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Originally Posted by Xenophon
In the Baen example above, the eBooks are paying their full share of those costs (amortized over dollar-value-to-Baen of the sales). The costs that are NOT there, however, are the distributor's markup (to cover their overhead and profit) and the retailer's markup (to cover ditto). Baen and Baen's authors do at least as well when you buy bits as they do when you buy dead-tree-in-a-store -- and sometimes a good deal better!
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Hm, do you have a source for this info?