Anyone who has released a book on Amazon through KDP (Kindle Direct Publishing) has no doubt seen the price and revenue comparisons that are typically provided - which will usually suggest a preferred target price of $2.99 for most eBooks. Anything lower than $2.99 and the author's share of the revenue drops by a factor of two (per Amazon's policies). Anything higher, and the suggestion will be that higher pricing will produce fewer sales - which will in turn translate into a smaller gross income.
I was curious to see if actual indie author data supported this narrative.
Interrogating the available data, there does appear to be a clear trend towards fewer sales as the price of the eBook increases. This drop-off in sales would appear, on average, to more than counteract the added revenue from higher per-unit pricing. Selling ten books at $5.99 will produce less revenue than selling hundreds at $3.99.
It is possible that the vast majority of established indie authors were also driven to select this "sweet spot" by other market pressures. It may be difficult to justify the cost of advertising, for example, at anything lower than a $3.99 unit price - not when many online advertising services charge on a cost-per-click basis. The picture may also look different for an author/publisher who has not yet achieved these higher volumes.
There will be other levers, of course, available for maximizing sales volume. As an example, from the sample of authors and books assessed, titles which were available as both eBooks and in paperback saw 53-percent more eBook sales than those titles which were available only in eBook form. Having both a paperback and an eBook appears to add credibility and promote sales, even if eBook sales continue to predominate for most indie authors.
Author/publishers who are still working to establish themselves will need to experiment with what pricing works best for their particular title, at their particular stage in their career. But looking to the future, there are indie authors who have already paved the way, and whose example can provide guidance for what many of us aspire to.
This is interesting, John. Where do you get your data set?
ReplyDeleteI wonder if selling an ebook for $3.99 helps even in the case of a new indie author with no past sales, or if a new author should stick to 99 cents for their first book.
Lia
Hi Lia,
DeleteA lot of indie authors will introduce the first book in a series at a lower price, to funnel sales for the follow-on books.
According to the article I cited previously from Written Word Media, over 40-percent of all authors who gross over $60k from writing per year, also have at least one title on permafree to help attract readers to their writing.
https://www.writtenwordmedia.com/author-income-how-to-make-a-living-from-your-writing/
Hope this helps. :-)