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Is the 70% Kindle “royalty” a good deal?

So, what no one is talking about is the little line that Amazon slipped into their announcement package: " For each Kindle book sold, authors and publishers who choose the new 70 percent royalty option will receive 70 percent of list price, net of delivery costs."

They went on to say: "Delivery costs will be based on file size and pricing will be $0.15/MB. At today’s median DTP file size of 368KB, delivery costs would be less than $0.06 per unit sold."

NO BIG DEAL, right? 

Well, maybe not right now, but the e-book arena is expected to explode with all kinds of new features embedded in books - links, pictures, video, animation, and who knows what else - and what does that mean?  BANDWIDTH. Cost to download.

That is what Amazon is really doing - positioning today for the huge files that will be downloaded in the future - and the ability to charge the publisher/author for the "delivery" of those files.

We may all be yearning for the days of 25-30% "royalty."

 

 

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3 Responses to “Is the 70% Kindle “royalty” a good deal?”

  1. Anon says:

    I would love to read you blog entry, but this is what it looks like when I view it:

    So, what no one is talking about is the little line that Amazon slipped into their announcement package: ” For each Kindle book sold, authors and publishers who choose the new 70 percent royalty option will receive 70 percent of list price, net of delivery costs.”

    They went on to say: “

  2. admin says:

    Yes I’m so sorry - we are working on fixing it - it is fine in Firefox and Safari - it is a glitch with IE only. Please check back - we hope to get it fixed soon - isn’t technology great when it works?

  3. Walt Shiel says:

    Bandwidth is an expense, particularly if you start talking about lots of traffic in huge files. I have no problem with Amazon trying to enforce some common sense on their publisher-partners. Otherwise, people would surely start submitting really huge Kindle files with abandon.

    Besides, you get to select your royalty option with each book. And you can always take it down if you later decide Amazon is charging too much. I would rather factor such costs into my retail price than have a potential buyer get annoyed with an extra download charge.

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