Everyone was excited when the Kindle 70% royalty went live. But now folks are grumbling. Why? Because of the fine print.
Amazon doesn’t pay the 70% royalty based on the list price, which is the price the publisher set. It pays it based on the price in effect when a copy sells. To match sale prices at other online stores, Amazon often sells books at a lower price than the list price, so this won’t be a rare occurrence. It’s already happening to folks that belong to EPIC.
For example, if a publisher sets the list price for My eBook to $5.99, and Barnes & Noble puts My eBook on sale for $2.99, Amazon may adjust its price to $2.99. When a copy sells, the publisher will get 70% of $2.99, not $5.99.
The 35% royalty option doesn’t operate this way. The publisher always gets 35% of the list price.
Keep your eye out for this type of clause when considering where to offer your books and what options to select.