Royalties

What Authors Earn: Amazon Book Royalties and Publishing Costs - article

Author Learning Center — Thu, 26 Mar 2020 12:26:40 GMT

Current Revision posted to Royalties by Author Learning Center on 3/26/2020 12:26:40 PM

For new authors, the thought of book royalties can be both exhilarating and utterly confusing. You want to know exactly how much you'll earn for all of your hard work, but new terminology and perplexing math may cloud your view of payday. Plus, you need to understand what your book publishing costs will be. After all, when you self-publish, you foot the bill, so you need to keep costs and royalties in mind to truly understand what you'll earn publishing a book.

Amazon is one of the world's largest booksellers, so understanding Amazon royalties and self-publishing costs is a good place to start. So, how much royalty will you earn when your book is sold on Amazon? That depends on how you published it and how readers access your book.

First, let's look at royalty earnings and costs when you publish a book through Amazon's Kindle Direct Publishing. Next, we'll examine how royalty payments and costs work through two of Amazon's content access channels, Kindle Unlimited and Kindle Owners' Lending Library. And finally, we'll consider Amazon royalties when you publish through other self-publishing companies or traditional publishers.

Kindle Direct Publishing royalties and costs

Kindle Direct Publishing (KDP) allows you to publish Kindle eBooks and print books for free. As their name suggests, the company originally focused on only publishing Kindle eBooks, but since February 2017, it expanded to offer print publishing too. KDP is similar to Amazon's previous publishing platform, CreateSpace, but it has important differences as well, such as differences in distribution and service offerings.

Royalties: KDP offers two eBook royalty options: 35% or 70%. With such a big difference between the numbers, there must be a catch to the 70% option, right? Well, yes. To receive 70% royalties on eBook sales, your eBook must meet their list of requirements, which regulates the list price, areas of distribution, and exclusivity of sales through the Kindle Store for sales in certain countries. The only other factor deducted from your royalty is tax. You earn "Royalty Rate x (List Price – applicable VAT) = Royalty," as it's explained on their website (VAT stands for "value-added tax").

For print book royalties, on KDP's website, it states: "Paperback royalty rates are 60% of the list price displayed on Amazon at the time of purchase, minus printing costs, applicable taxes, and withholding."

Cost: It's free to publish an eBook or print book with KDP. The company doesn't offer professional services like CreateSpace did. But remember: even though the publishing service offered is free, that doesn't mean you shouldn't invest in your book. Spending money on a quality cover design, editing services, and a marketing campaign makes a huge difference in the success of a book.

Other Amazon book royalties

Kindle Unlimited and Kindle Owners' Lending Library royalties and costs

When you publish an eBook with KDP, you can also earn royalties through two of Amazon's services: Kindle Unlimited (KU) and Kindle Owners' Lending Library (KOLL). Kindle Unlimited is a subscription service that allows its customers to read as many eBooks as they like and keep them as long as they want. Kindle Owners' Lending Library also allows its users to "borrow" eBooks without a due date. It's available to Amazon Prime members who own a Kindle e-reader, Fire tablet, or Fire phone. If you have a book in KDP Select (which is a requirement for the 70% royalty), then it will automatically be available through KU and KOLL.

Royalty: You're paid for the number of pages the customer reads in your book for the first time (if a customer reads your book again, you're not paid again). You receive a combined royalty payment for both KU and KOLL according to your Kindle Direct Publishing schedule. Royalty earnings are determined by how many pages of your book were read that month, but it's not a fixed price or rate. According to KDP, "The share of fund allocated to each country varies based on a number of factors, such as exchange rates, customer reading behavior, and local subscription pricing. Author earnings are then determined by their share of total pages read, up to a total of 3,000 pages per customer per title."

Cost: It's free to include your book in KU and KOLL, however, you do have to meet their requirements, including exclusivity to sales only through the Kindle Store.

Amazon royalties for books not published through Amazon

If you didn't publish your book through one of Amazon's publishing options, but through a different self-publishing company or traditional publisher, then the Amazon royalty structure doesn't apply. In this case, seek royalty details from your publisher to understand how much royalty you'll earn when your book is sold on Amazon.

For example, here's how royalties are calculated when you publish with AuthorHouse, a supported self-publishing company. For print books, AuthorHouse gives authors a royalty rate of 10% through distribution channels, including Amazon. You earn 25% of retail price when your book is sold through AuthorHouse's bookstore. Regarding eBook sales, you receive "50% of the digital net, less any returns." You can learn more about AuthorHouse royalties on their website.

Reach your publishing goals

Now that you know a little more about Amazon book royalties and book publishing costs, you can better understand what you could earn as an author when you publish through Kindle Direct Publishing. Put this information to use when creating the budget for your book. If you expect to earn back what you spend creating your book, estimate how many books you'll have to sell to get back in the black. Is the number realistic and attainable? If not, you may need to adjust your goals or budget. By setting realistic expectations now and establishing a budget within your means, you can realize your publishing dreams without breaking the bank.

Tags: article, fiction, Nonfiction

What Authors Earn: Amazon Book Royalties and Publishing Costs - article

Author Learning Center — Wed, 06 Dec 2017 18:15:23 GMT

Revision 5 posted to Royalties by Author Learning Center on 12/6/2017 6:15:23 PM

First, let's look at royalty earnings and costs when you publish a book through Amazon's two self-publishing platforms: CreateSpace and Kindle Direct Publishing. Next, we'll examine how royalty payments and costs work through two of Amazon's content access channels, Kindle Unlimited and Kindle Owners' Lending Library. And finally, we'll consider Amazon royalties when you publish through other self-publishing companies or traditional publishers.

Amazon book publishing costs and royalties

CreateSpace royalties and costs

CreateSpace is Amazon's print book publishing service. When you publish with CreateSpace, your book is printed on demand whenever someone orders it. Your book can also be converted into a Kindle e-book.

Royalties: You earn the list price minus Amazon's share (which includes a fixed charge, per-page charge, and sales channel percentage). There's a royalty calculator which helps to illustrate how the royalty changes based on your type of book and where the book is sold. You earn the most when you sell your book through your CreateSpace eStore, and the least through their expanded distribution channels, which includes Ingram and Baker & Taylor. CreateSpace uses its Kindle Direct Publishing (KDP) division to handle e-books published through CreateSpace, so the e-book royalties are the same as KDP's, which you can learn more about in the next section.

Here's an example of the CreateSpace royalty you could earn based on a black and white, six-by-nine inch book with 250 pages. It's up to you to choose the list price. Let's say, $13.00. The higher the list price, the higher the royalty (but potentially fewer sales):

- com: $3.95

- CreateSpace eStore: $6.55

- Expanded Distribution: $1.35

- Amazon Europe: GBP £57 (that's about $3.45)

- Amazon Europe: EUR €92 (that's about $3.44)

Why the differences in royalties based on where it's sold? That's the difference in the sales channel percentage. For books sold through Amazon.com or Amazon Europe, the amount charged is 40%. Sales through the CreateSpace eStore registers a 20% charge. And expanded distribution sales has the heftiest charge of 60%. There are more details on how CreateSpace calculates royalties on their website.

Cost: Amazon book publishing costs with CreateSpace varies on the services you need. You can publish without incurring any costs if you use their free, do-it-yourself book interior reviewer and cover creator, and use a CreateSpace ISBN. However, you may choose to purchase services, such as design, editing, marketing, and Kindle conversion. Depending on the services you select, you can spend hundreds or thousands of dollars—it's up to your needs and budget for your book.

Kindle Direct Publishing royalties and costs

Kindle Direct Publishing (KDP) allows you to publish Kindle e-books and print books for free. As their name suggests, the company originally focused on only publishing Kindle e-books, but since February 2017, it expanded to offer print publishing too. KDP is similar to CreateSpace, but it has important differences as well, such as differences in distribution and service offerings (you can view a feature comparison on their website).

Royalties: KDP offers two e-book royalty options: 35% or 70%. With such a big difference between the numbers, there must be a catch to the 70% option, right? Well, yes. To receive 70% royalties on e-book sales, your e-book must meet their list of requirements, which regulates the list price, areas of distribution, and exclusivity of sales through the Kindle Store for sales in certain countries. The only other factor deducted from your royalty is tax. You earn "Royalty Rate x (List Price – applicable VAT) = Royalty," as it's explained on their website (VAT stands for "value-added tax").

Print book royalties are seemingly identical to CreateSpace's, but with different wording. On KDP's website, it states: "Paperback royalty rates are 60% of the list price displayed on Amazon at the time of purchase, minus printing costs, applicable taxes, and withholding." CreateSpace authors also receive a 60% royalty for books sold through Amazon; however, they do not describe it as such.

Cost: It's free to publish an e-book or print book with KDP. The company doesn't offer professional services like CreateSpace does. But remember: even though the publishing service offered is free, that doesn't mean you shouldn't invest in your book. Spending money on a quality cover design, editing services, and a marketing campaign makes a huge difference in the success of a book.

Other Amazon book royalties

Kindle Unlimited and Kindle Owners' Lending Library royalties and costs

When you publish an e-book with KDP, you can also earn royalties through two of Amazon's services: Kindle Unlimited (KU) and Kindle Owners' Lending Library (KOLL). Kindle Unlimited is a subscription service that allows its customers to read as many e-books as they like and keep them as long as they want. Kindle Owners' Lending Library also allows its users to "borrow" e-books without a due date. It's available to Amazon Prime members who own a Kindle e-reader, Fire tablet, or Fire phone. If you have a book in KDP Select (which is a requirement for the 70% royalty), then it will automatically be available through KU and KOLL.

Cost: It's free to include your book in KU and KOLL, however, you do have to meet their requirements, including exclusivity to sales only through the Kindle Store.

Amazon royalties for books not published through Amazon

For example, here's how royalties are calculated when you publish with AuthorHouse, a self-publishing company. For print books, AuthorHouse gives authors a royalty rate of 10% through distribution channels, including Amazon. You earn 25% of retail price when your book is sold through AuthorHouse's bookstore. Regarding e-book sales, you receive "50% of the digital net, less any returns." You can learn more about AuthorHouse royalties on their website.

Reach your publishing goals

Now that you know a little more about Amazon book royalties and book publishing costs, you can better understand what you could earn as an author when you publish through CreateSpace or Kindle Direct Publishing. Put this information to use when creating the budget for your book. If you expect to earn back what you spend creating your book, estimate how many books you'll have to sell to get back in the black. Is the number realistic and attainable? If not, you may need to adjust your goals or budget. By setting realistic expectations now and establishing a budget within your means, you can realize your publishing dreams without breaking the bank.

Tags: article, fiction, Nonfiction

What Authors Earn: Amazon Book Royalties and Publishing Costs - article

Author Learning Center — Wed, 06 Dec 2017 18:11:50 GMT

Revision 4 posted to Royalties by Author Learning Center on 12/6/2017 6:11:50 PM

Amazon book publishing costs and royalties

CreateSpace royalties and costs

com: $3.95
CreateSpace eStore: $6.55
Expanded Distribution: $1.35
Amazon Europe: GBP £57 (that's about $3.45)
Amazon Europe: EUR €92 (that's about $3.44)

Kindle Direct Publishing royalties and costs

Other Amazon book royalties

Kindle Unlimited and Kindle Owners' Lending Library royalties and costs

Cost: It's free to include your book in KU and KOLL, however, you do have to meet their requirements, including exclusivity to sales only through the Kindle Store.

Amazon royalties for books not published through Amazon

Reach your publishing goals

Tags: article, fiction, Nonfiction

What Authors Earn: Amazon Book Royalties and Publishing Costs - article

Michael Esser — Wed, 06 Dec 2017 13:08:31 GMT

Revision 3 posted to Royalties by Michael Esser on 12/6/2017 1:08:31 PM

Amazon book publishing costs and royalties

CreateSpace royalties and costs

com: $3.95
CreateSpace eStore: $6.55
Expanded Distribution: $1.35
Amazon Europe: GBP £57 (that's about $3.45)
Amazon Europe: EUR €92 (that's about $3.44)

Kindle Direct Publishing royalties and costs

Other Amazon book royalties

Kindle Unlimited and Kindle Owners' Lending Library royalties and costs

Cost: It's free to include your book in KU and KOLL, however, you do have to meet their requirements, including exclusivity to sales only through the Kindle Store.

Amazon royalties for books not published through Amazon

Reach your publishing goals

Tags: article, fiction, Nonfiction

Amazon: Costs and Royalties - article

Michael Esser — Sat, 04 Mar 2017 09:15:12 GMT

Revision 2 posted to Royalties by Michael Esser on 3/4/2017 9:15:12 AM

How does book retailing work on Amazon? Traditional books are sent to Amazon by the publisher. If you’re a self-publisher, you have a few options. You can use an online publishing service like Wordclay or Lulu that will list your book on several online retailers, including Amazon. Sometimes this service might cost you extra in the form of a “marketing” or “distribution” package but if you are really serious about getting your book listed on Amazon, you might find it well worth the investment.

The cost to authors for these types of programs varies depending on which publishing service you use. Wordclay has a package that includes an ISBN and distribution to 25,000 retailers worldwide for $99. The turnaround is about 30 days and includes inclusion on Amazon.com. Lulu's comparable package is called the extendedREACH. This service lists your title and ISBN in bibliographic databases in the US and UK (Bowker and Nielsen) and makes your work available on Amazon.com and Amazon.co.uk. You can always choose to create your book using the Amazon affiliate CreateSpace. There you’ll be able to create your book in its entirety following simple point-and-click instructions. Upon completion of its design and upload you’ll want to order a copy for yourself to proof because it’s going to be listed automatically in the Amazon database and subsequent sales portal.

The typical royalty structure for a digital eBook sold in the Kindle format is either 35% or 70%, depending on the structure you choose. The 35% option allows you to price your books as low as $0.99. This low pricing allows you to market to the masses and capture more volume. While the 70% option lets you keep more of the profit, you must price your eBook at $2.99 or more.

If you choose to go with CreateSpace and sell printed versions of your book (using print on demand technology) on Amazon the breakdown for your royalties can be quite intimidating. You can find the royalties schedule on CreateSpace’s Royalty page but the breakdown for the royalties from each sale is as follows: List Price (Set by you.) - Amazon’s share = Your Royalty. They then define Amazon’s share as: Sales Channel Percentage + Fixed Charge + Per Page Charge = Amazon’s share. The Sales Percentage is 40% of the list price per sale if sold on Amazon. The Fixed Charge for a standard black and white book under 108 pages is $3.66 and $1.50 for the same book with 109 pages or more. Color books cost more. The Per-Page charge for a standard black and white book under 108 pages is free and .02 cents per page for the same book with 109 pages or more.

As noted elsewhere, there are many choices for self publishing your book. We encourage you to consider your goals, the quality of the finished product, and ease of distribution – which is key to any successful book selling effort. Then, take action. The world is waiting for your book!

Tags: article, fiction, Nonfiction

Royalties: How do They Work When Self-Publishing E-books? - article

R.J. Lee — Fri, 03 Mar 2017 16:12:08 GMT

Current Revision posted to Royalties by R.J. Lee on 3/3/2017 4:12:08 PM

E-books are a great way for emerging authors to make their first splash, because e-book publishers don’t reject you. You also don’t need an agent to publish an e-book, so whatever you make is yours and yours alone (once the e-book retailer gets its split, of course.) Amazon.com, Apple iBooks and Barnes and Noble’s Nook are examples of e-book retailers.

Amazon.com’s e-book model is to give the author a whopping 70% of the sales, provided that the price of the e-book is $2.99 or higher. If the price of the book is less than $2.99, the royalty is 35%. Nook and the iBook store are similarly priced.

These companies should be distinguished from e-book service providers such as Lulu, which pays an 80/20 split. Service providers make publishing your e-book easier and quicker, with intuitive interfaces and step-by-step instruction. However, when publishing with Lulu and having Lulu “distribute” your work on Amazon or Apple or any other e-book retailer, (as opposed to just selling it on the Lulu site), the retailers’ commission will be subtracted before Lulu takes its cut. This means you’ll have the opportunity to sell more books, but your payout per book will be reduced.

There are several other e-book sellers and service providers, and more lining up to join the fray, but the common traits they all offer are a high royalty rate and a minimum selling price (Lulu’s is $1.24.)

Why are e-book royalties so high compared to traditional publishing? There are a couple of reasons why e-book royalties are so much higher than traditional publications. For one thing, the e-book publisher incurs virtually no costs. There’s no printing, marketing, distribution, editing etc. They’re simply providing a marketplace for authors to exhibit and sell their work. In addition, as an author, you set the price, and you want to set it so that you sell, sell, sell. It’s a quantity game in the e-book world.

Another reason e-books pay higher royalties for self publishing authors than if you go through a traditional publisher is because there is competition in the marketplace. More and more e-publishers and e-book retailers are trying to attract authors. Their business model depends on having a lot of content to offer to people like the business traveler with a Kindle or an iPad who’s about to board the 16-hour flight to Tokyo, the soccer mom who wants her kids to do more with their tablet computers than play video games, and that voracious reader who can’t wait for an elevator without cracking open a book.

Traditional publishers no longer have the industry in a hammerlock. Creativity has never been so valued, opportunity has never been more available, and that’s good for all of us.

Tags: article, fiction, Nonfiction

Royalties: What is the Typical Royalty Structure When Publishing Traditionally? - article

R.J. Lee — Fri, 03 Mar 2017 15:59:06 GMT

Current Revision posted to Royalties by R.J. Lee on 3/3/2017 3:59:06 PM

The first rule of thumb in negotiating a book contract with a traditional publisher is that the contract can be a veritable minefield for the author. So, step one, don’t sign anything until you are sure you understand exactly what you’re signing, which usually means consulting an attorney.

One of the key components of any publishing contract is the royalty structure. Here are some of the variables in royalty calculations to be aware of:

Royalties on gross sales: If you are being paid a 10% royalty on the gross, $100,000 worth of book sales gets you $10,000.00. Seems simple enough, but it’s important to read the fine print. Even contracts with the most straightforward royalty structures can have fine print that works only to the advantage of the publisher.

Royalties on net sales: If you are being paid on the publisher’s net sales, it’s a different story altogether. The publisher gets to subtract printing, distribution, retail discounts etc., which may leave you with only 75%, 50% or even smaller royalties on that $100,000.00. This will vary publisher to publisher, contract to contract. For the author’s purposes, gross is preferable to net. However, you most likely will have no choice on the terms in the contract. You desperately want your book to be published, so you pretty much have to accept the terms that the publisher offers. This is the price the author pays for the credibility and marketing power that traditional publishing houses provide.

Advances against royalties: Generally, if you’re a first time author, and your agent has managed to snare a deal with a publisher, you’ll get a small advance (usually $2,000 to $20,000.00). If you’re book is a paperback, you’ll likely be paid 5-7% royalties against that advance. If it’s in hardcover, the royalty rate is generally higher (between 10 and 15%.) If the book’s sales allow the publisher to make money beyond the advance, you’ll continue to receive royalties on future sales. But be careful: Some contracts call for the advance to be reimbursed to the publisher on a pro rata basis if your book sales don’t meet or exceed the break-even point.

Don’t forget your agent. Most traditional publishers today won’t even read your book proposal unless it’s presented to them by a literary agent. An agent does serve an important function besides just shopping your book; A good literary agent can advise you on contract negotiations, keep you from making costly mistakes, and provide important moral support as the negotiation process drags out. For that, expect to pay your agent 10-15% of what you earn. Although an agent is not an attorney, their advice on the contract will be invaluable to you and, in the end, you’ll feel that 10% fee was worth it.

Tags: article, fiction, Nonfiction

Royalties: What is the Typical Royalty Structure When Publishing Traditionally? - Article

R.J. Lee — Wed, 14 Dec 2016 00:00:00 GMT

Revision 1 posted to Royalties by R.J. Lee on 12/14/2016 12:00:00 AM

One of the key components of any publishing contract is the royalty structure. Here are some of the variables in royalty calculations to be aware of:

Tags: article, fiction, Nonfiction

Royalties: How do They Work When Self-Publishing E-books? - Article

R.J. Lee — Wed, 14 Dec 2016 00:00:00 GMT

Revision 1 posted to Royalties by R.J. Lee on 12/14/2016 12:00:00 AM

Traditional publishers no longer have the industry in a hammerlock. Creativity has never been so valued, opportunity has never been more available, and that’s good for all of us.

Tags: article, fiction, Nonfiction

Amazon: Costs and Royalties - Article

Michael Esser — Wed, 14 Dec 2016 00:00:00 GMT

Revision 1 posted to Royalties by Michael Esser on 12/14/2016 12:00:00 AM

Tags: article, fiction, Nonfiction

Royalties

Former Member — Sat, 12 Nov 2016 01:38:48 GMT

Current Revision posted to Royalties by Former Member on 11/12/2016 1:38:48 AM