$.99 eBook becomes biggest earner

PHugger · 03-09-2011, 01:55 PM

An independent author's perspective on eBook pricing -

http://news.slashdot.org/story/11/03...-Books?from=fb

PCH

HarryT · 03-09-2011, 01:59 PM

I am a little puzzled:

Quote:

Joe Konrath has an interesting interview with independent writer John Locke who currently holds the coveted #1 spot in the Amazon Top 100 and has sold just over 350,000 downloads on Kindle of his 99 cent books since January 1st of this year, which, with a royalty rate of 35%, is an annual income well over $500k.

350,000 downloads at $1 (let's make it round figures) means sales of (obviously) $350,000. 35% of $350,000 is $122,500. Where does this figure of "well over $500k" come from?

Graham · 03-09-2011, 02:04 PM

Quote:

Originally Posted by HarryT

I am a little puzzled:

350,000 downloads at $1 (let's make it round figures) means sales of (obviously) $350,000. 35% of $350,000 is $122,500. Where does this figure of "well over $500k" come from?

I guess it's a projected annual income based on two months of sales.

Graham

Giggleton · 03-09-2011, 02:06 PM

While it might seem a bit restrictive to limit your content provider's pricing options, mandating that all authors sell their books for 1 dollar might be an interesting option for booksellers to consider.

This would create an extremely level playing field, debates about the worth of a particular purchase would be non-existent.

Popular authors such as those in the article, have had success at this price point. This small price model is probably best suited to a direct writer to reader relationship.

It would also bring us one step closer to a copyright free world, where all books are freely traded and compensation comes in the form of donations after the fact of reading.

The Old Man · 03-09-2011, 02:07 PM

Quote:

Originally Posted by HarryT

I am a little puzzled:

350,000 downloads at $1 (let's make it round figures) means sales of (obviously) $350,000. 35% of $350,000 is $122,500. Where does this figure of "well over $500k" come from?

It says, "...since January 1st of this year, which, with a royalty rate of 35%, is an annual income well over $500k." and is dated today so I think they are projecting sales at that rate through the end of this year. Does seem a bit fantastic.

I also notice he has several books at that price. Perhaps they are including them all.

HarryT · 03-09-2011, 02:18 PM

Quote:

Originally Posted by The Old Man

It says, "...since January 1st of this year, which, with a royalty rate of 35%, is an annual income well over $500k." and is dated today so I think they are projecting sales at that rate through the end of this year. Does seem a bit fantastic.

That would explain it. Thanks - I'd missed the word "annual".

RockdaMan · 03-09-2011, 02:22 PM

As long as it entertains me.

The Old Man · 03-09-2011, 02:29 PM

The article does offer some hope for reduced prices and the reason for the $$$ income does make sense. I looked over several of his books and was tempted on one. Dropping a buck is no longer much of an expense, only about 6 miles of driving and 1/5 the price of a decent cigar.

Fbone · 03-09-2011, 02:53 PM

Keep in mind John Locke's two books on Amazon's list are only 200 pages long or about 50,00 words.

Edit: I checked on Smashwords and they are less than 42,000 words.

Dulin's Books · 03-09-2011, 02:54 PM

do they get 35% for $.99 books? i thought there was a staged rate where they got less for books priced under $3?

Dulin's Books · 03-09-2011, 02:58 PM

According to this article about the success of young Amanda Hocking http://www.usatoday.com/life/books/n...oks09_ST_N.htm they get 70% of the price at $2.99 or more and 30% at $.99

The Old Man · 03-09-2011, 03:01 PM

Quote:

Originally Posted by Fbone

Keep in mind John Locke's two books on Amazon's list are only 200 pages long or about 50,000 words.

I count seven.

tubemonkey · 03-09-2011, 03:03 PM

Quote:

Originally Posted by Dulin's Books

According to this article about the success of young Amanda Hocking http://www.usatoday.com/life/books/n...oks09_ST_N.htm they get 70% of the price at $2.99 or more and 30% at $.99

That's quite a cut. Why doesn't he also sell in iTunes and get 70%?

Lastblade · 03-09-2011, 03:03 PM

Marginal cost = price => Profit maximization

Hellmark · 03-09-2011, 03:40 PM

At that price, you start to get a lot of the impulse buys. At higher prices, people start thinking more about whether or not they want it.

03-09-2011, 02:53 PM	#9
Fbone Is that a sandwich? Posts: 8,313 Karma: 103930826 Join Date: Jun 2010 Device: Nook Glowlight Plus	Keep in mind John Locke's two books on Amazon's list are only 200 pages long or about 50,00 words. Edit: I checked on Smashwords and they are less than 42,000 words. Last edited by Fbone; 03-09-2011 at 03:05 PM.

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03-09-2011, 01:55 PM	#1
PHugger Connoisseur Posts: 94 Karma: 8443 Join Date: Oct 2007 Location: NJ Device: Kindle 3G, Sony PRS-505	$.99 eBook becomes biggest earner An independent author's perspective on eBook pricing - http://news.slashdot.org/story/11/03...-Books?from=fb PCH

03-09-2011, 02:06 PM	#4
Giggleton Banned Posts: 1,687 Karma: 4368191 Join Date: Jan 2011 Location: Oregon Device: Kindle3	While it might seem a bit restrictive to limit your content provider's pricing options, mandating that all authors sell their books for 1 dollar might be an interesting option for booksellers to consider. This would create an extremely level playing field, debates about the worth of a particular purchase would be non-existent. Popular authors such as those in the article, have had success at this price point. This small price model is probably best suited to a direct writer to reader relationship. It would also bring us one step closer to a copyright free world, where all books are freely traded and compensation comes in the form of donations after the fact of reading.

03-09-2011, 02:22 PM	#7
RockdaMan Banned Posts: 1,644 Karma: 213512 Join Date: Oct 2010 Location: On the other side of over there Device: Pandigital Novel, Kindle G1 (broken), iPod Touch	As long as it entertains me.

03-09-2011, 02:29 PM	#8
The Old Man Fanatic Posts: 566 Karma: 1560525 Join Date: Jan 2008 Location: Keene, New Hampshire Device: iPad Mini	The article does offer some hope for reduced prices and the reason for the $$$ income does make sense. I looked over several of his books and was tempted on one. Dropping a buck is no longer much of an expense, only about 6 miles of driving and 1/5 the price of a decent cigar.

03-09-2011, 02:54 PM	#10
Dulin's Books Wizard Posts: 2,806 Karma: 13500000 Join Date: Nov 2009 Location: Portland, OR Device: Boox PB360 etc etc etc	do they get 35% for $.99 books? i thought there was a staged rate where they got less for books priced under $3?

03-09-2011, 02:58 PM	#11
Dulin's Books Wizard Posts: 2,806 Karma: 13500000 Join Date: Nov 2009 Location: Portland, OR Device: Boox PB360 etc etc etc	According to this article about the success of young Amanda Hocking http://www.usatoday.com/life/books/n...oks09_ST_N.htm they get 70% of the price at $2.99 or more and 30% at $.99

03-09-2011, 03:03 PM	#14
Lastblade Nookie are we Posts: 175 Karma: 496294 Join Date: May 2010 Location: NYC Device: Nooks with and without color	Marginal cost = price => Profit maximization

03-09-2011, 03:40 PM	#15
Hellmark Wizard Posts: 2,592 Karma: 4290425 Join Date: Jun 2009 Location: Foristell, Missouri, USA Device: Nokia N800, PRS-505, Nook STR Glowlight, Kindle 3, Kobo Libra 2	At that price, you start to get a lot of the impulse buys. At higher prices, people start thinking more about whether or not they want it.