This is an extract from the 30 Day Kindle Success Challenge by @HelenStothard
Kindle offers you two royalty options when you publish your book, being 35% and 70% commission.
The 35% royalty option applies to sales in any territory. The 70% royalty option only applies to the following territories:
United Kingdom (including Guernsey, Jersey and Isle of Man)
If you have chosen 70% then sales outside of the above territories will be paid at the 35% royalty rate.
Amazon don’t charge a delivery cost for books sold at the 35% rate but do charge a minimal cost for books sold at the 70% rate. This varies per currency but is currently £0.10 MB for books sold in sterling.
If you select the 70% option you should also note that the list price on Amazon must be at least 20% lower than any other publisher offering the digital or physical version of your book.
Public Domain works
If your book consists primarily of public domain work you can only select the 35% option.
Minimum and Maximum List Prices
If you select the 35% option your book must be priced between £0.75 and £120.00 (the minimum price is higher if your book is greater than 3mb in size)
If you select the 70% option your book must be priced between £1.49 and £7.81
You should also remember that Kindle books are subject to VAT and account for this when setting your sales price.
It’s worth bearing in mind that a book sold for £9.99 will earn you less royalty than a book sold at £6.99 as this can only attract a 35% royalty.
£9.99 equates to approximately £3.50 royalty
£6.99 equates to approximately £4.89 royalty
You need to consider what is an appropriate price for a book in your chosen category. This will have shown up in the research you did earlier on in the challenge.
If you price your book too low then you may find it is not taken as a credible offering within the category, if you price your book too high you may find you simply are too expensive compared to your competitors.
Kindle allows you to update the pricing on your book at any time once it has been published, but bear in mind it can take up to 24 hours for a price change to become effective.
Today’s challenge is to decide the initial selling price for your book.
Want the other 29 days, plus extras? Get the Challenge below: