Are authors earning more or less with Kindle Unlimited?

Unlimited Reading

KINDLE UNLIMITED

Now that customers can subscribe to Kindle Unlimited for $9.99 to read unlimited books, authors are wondering whether the grass is greener inside or outside of KDP Select.

One trade-off is exclusivity. Titles enrolled in KDP Select can’t be available in digital format anywhere other than Kindle.

Exclusivity actually works two ways:

  • The obvious way is that KDP Select books may lose potential sales to customers who love to read on Nooks, Kobos, etc.
  • Another way is that books not enrolled in KDP Select may lose potential borrows from Kindle Unlimited customers, who may strongly prefer not to purchase books outright.

There is another trade-off for higher-priced e-books: Kindle Unlimited has paid about $1.50 for the first two months, which is less than the usual royalties for most books priced $2.99 and up.

Another issue is that customers must read 10% of the book before the author will receive a royalty for the download.

In exchange for exclusivity, authors with books in KDP Select hope to:

  • Gain additional exposure through Kindle Unlimited. Customers may be more willing to try a new or self-published author through this program.
  • Improve sales rank. Every download through Kindle Unlimited helps sales rank, even if the book isn’t read to 10% (but no royalty is paid until the book is read to 10%). Better sales rank helps with exposure.
  • Get more sales. Even if the royalties may be somewhat less through Kindle Unlimited, more sales has word-of-mouth potential.
  • Occasionally earn double royalties. A customer who borrows a book may later purchase the book so as not to have to return it. This happens.

Authors with books not in KDP Select hope to:

  • Gain additional exposure on other markets, such as Nook and Kobo.
  • Sell more books on other markets than the sales that they may be losing by not being in KDP Select.

Kindle Unlimited is definitely affecting sales ranks of all books, whether or not they are in KDP Select. Some books are doing better, others are doing worse. Each book is different.

The question is:

Is it better to enroll in KDP Select, or is it better to opt out and sell across all digital markets?

It’s a tough choice. Some books do better in KDP Select, others do better outside of it, and some may net about the same either way.

Personally, I’m seeing a small increase in Kindle sales and the improved borrows are gravy. I sell many more paperbacks than Kindle e-books, yet I’m glad to see Kindle growing a little.

Following are a few very handy resources to help you with this decision:

OCTOBER 2014 AUTHOR EARNINGS

http://authorearnings.com/report/october-2014-author-earnings-report-2

  • This report breaks down author earnings and looks specifically at the impact of Kindle Unlimited.
  • On average, enrolling in KDP Select appears to reap a 13% reward. Again, it’s an average, so some are earning much more, some are losing.

KINDLE UNLIMITED ANALYSIS

Nicholas Rossis has a detailed analysis of the impact of Kindle Unlimited on his blog.

http://nicholasrossis.me/2014/10/25/kindle-unlimited-conclusions-from-hugh-howeys-latest-author-earnings-report

When you get about halfway through, you’ll start to see the Kindle Unlimited analysis.

HUGH HOWEY

This brief note from Hugh Howey is worth a read.

http://www.hughhowey.com/october-2014-author-earnings-report

One thing Hugh stresses is that it would be nice to see KU pay a different royalty for very short books. Many authors who aren’t selling short books agree with this.

Just imagine earning $1.62 for a book with a list price of 99 cents (where the royalty for a sale is 34 cents).

Amazon is inconsistent on this point:

  • If you price your book under $2.99, instead of earning a 70% royalty, you earn 35%. It seems like a clear incentive to produce enough content so you can charge $2.99.
  • If you price your book at 99 cents, we’ll pay you a royalty of $1.62 if you enroll your book in KDP Select.

I don’t think authors with 99-cent books could complain too much if, say, Amazon paid them 50 cents for every Kindle Unlimited download, so that Amazon could pay a higher rate per download of higher-priced KDP Select books.

If you feel strongly about this, well, you could send a message to KDP to express your opinion. KDP has made changes in the past (the new sales dashboard, pre-order options, grade and age ranges), which many authors had been requesting. So if you really want to see a new feature, it may help to voice your opinion.

Read Tuesday

Imagine a Black Friday type of event just for book lovers.

You don’t have to imagine it. It’s called Read Tuesday, and it’s free: www.readtuesday.com.

Please support the Read Tuesday Thunderclap. This will help spread awareness on the morning of Read Tuesday (December 9, 2014). It’s easy to help:

  • Visit http://thndr.it/1CkO2Bg.
  • Click Facebook, Twitter, or Tumblr and sign in.
  • Customize the message. (Optional.)
  • Agree to the terms. All that will happen is that the Thunderclap post about Read Tuesday will go out the morning of December 9.
  • (The warning message simply means that Facebook, Twitter, or Tumblr need your permission to post the Thunderclap message on December 9. This is the only post that Thunderclap will make.)

Halloween Reading

Looking for some spooky books to read this Halloween month?

https://chrismcmullen.wordpress.com/scary-books

Chris McMullen

Copyright © 2014 Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers

  • Volume 1 on formatting and publishing
  • Volume 2 on marketability and marketing
  • Boxed set (of 4 books) now available for Kindle pre-order

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