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wallcraft · 01-31-2010, 06:50 AM

This seems to be a very bad deal for authors. They get a percentage of the list price, and under the agency approach is the list price and the selling price are always identical. If the author gets 10%:

Currently the list price is $30 and Amazon sells for $9.99 the publisher gets $15 and the author $3
If Amazon forces publishers to accept the $9.99 price point, the list price is $18 the publisher gets $9 and the author $1.80
Under the agency deal the list/selling price is $15 the publisher gets $10.50 and the author gets $1.50.

Assuming that ebook list prices have to come down, the publisher clearly wins with a 70% cut but the author equally clearly looses.

01-31-2010, 06:50 AM	#150
wallcraft reader Posts: 6,977 Karma: 5183568 Join Date: Mar 2006 Location: Mississippi, USA Device: Kindle 3, Kobo Glo HD	This seems to be a very bad deal for authors. They get a percentage of the list price, and under the agency approach is the list price and the selling price are always identical. If the author gets 10%: Currently the list price is $30 and Amazon sells for $9.99 the publisher gets $15 and the author $3 If Amazon forces publishers to accept the $9.99 price point, the list price is $18 the publisher gets $9 and the author $1.80 Under the agency deal the list/selling price is $15 the publisher gets $10.50 and the author gets $1.50. Assuming that ebook list prices have to come down, the publisher clearly wins with a 70% cut but the author equally clearly looses.