Straight talk from the sisters about blood, sweat and ink
The New Kindle Unlimited Royalty Scale
Monday morning, June 15th, the self publishing world absorbed the shock wave from the latest Amazon announcement. In case you haven’t heard, Amazon revealed a major monetary restructuring of the royalty calculations on their Kindle Unlimited program. Unlimited is the program that allows Amazon shoppers to pay a subscription fee to borrow an unlimited number of books from a list of over 600,000 titles. In the past, authors of ebooks in the Kindle Select program received a flat rental fee once the borrower read past the 10% mark of the total pages. The new system, effective July 1st, will create a per-page-actually-read pay scale. That means each author will only get paid for the number of pages a borrower actually reads in their book.
Feel free to pause and have a Big Brother Is Watching moment if you didn’t already know Amazon was keeping such a close eye on your page counts.
First some history: Amazon launched a rental program about two years ago, revising it to the current Unlimited system last year. At the launch, there were a lot of upset publishers and authors. They didn’t want the program tied to KDP Select. They were doing fine and they didn’t want any changes at all. Almost everyone hated the idea of a fixed payment rate set by Amazon. And that the amount had no relationship to the book’s sale price, or the length of the book. Many authors found their sales and their revenues plummeting after the loan program launched. Avid readers, the backbone of all book sales, loved the Unlimited program. For the cost of buying one or two e-books they could read as many books are they wanted each month for $9. 99 US dollars.
Once the uproar died down, some authors embraced the system and tried to create higher profitability by shifting away from book-length fiction, the superstar of the first indie boom, and moving into creating novellas, short stories and serials. The growth of short fiction offerings in the last two years was exponential. However, since readers could consume four times as many 50 page titles as they could 200 page titles, the pool of money being used to pay the authors had to spread to more titles, and the amount paid out per title started to fluctuate and shrink. Amazon pumped money into the pool to inflate the payout, but many established writers still pulled out of the KDP Select program so their books would not be part of the loan system. The remaining book length fiction writes have been upset about the system ever since.
Although Amazon hasn’t released too much information, they did say the new payment rate will continue to change month to month based on how much money is in the payment pool and how many pages the borrowers read. Currently a number of self publishing bloggers are wildly overestimating how much that per page payment will be, perhaps their optimism comes from Amazon’s own press release.
I suggest you run these numbers. Do the payouts represented here look remotely plausible? They don’t to me. And they don’t take into account the vast number of books that are put aside without finishing. Or that readers may take several months to finish a book. Although there are too many unknown variable, like what Amazon considers a page, I think it’s pretty safe to say the payout for many authors will go down. However, we will not know the facts on how this development will effect indie writer’s bottom lines until we see the August 15th KDP sales reports.
Before you wipe your brow and happily dismiss these changes as irrelevant to you, think again. These changes could affect all of us in one way or another. This isn’t just a monetary restructuring of the Kindle Unlimited program, but a publishing development that might cause some serous ripple effects. We have never seen book royalties tied to the number of read pages before. It’s truly shocking.
Next week I’ll be talking about how these changes will affect all fiction writers. And giving my predictions for the types of books that will suffer the most under the new program.
What are your thoughts? If you write indie books and have them included in the Unlimited program, are you concerned? Or are you optimistic?
Robin trained as a professional historian and worked as a museum curator, an educator and historical consultant. She writes dark young adult fiction, with diverse characters. She's currently querying a novel, and working on two new manuscripts that started off as NaNoWriMo projects. You can follow her on Facebook(https://www.facebook.com/robin.rivera.90813) or on Twitter @robinrwrites. However, Pinterest (https://www.pinterest.com/RRWrites/) is where her inner magpie is happiest of all.
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