As we’ve noted before, the preferred book price for many self-published EBook writers over the past year has been $2.99. The $2.99 ebook price point is significant because if your price your Amazon ebooks between $2.99 and $9.99, you receive a 70 percent royalty from Amazon with the Kindle Publishing plan. What that really means is more money in the bank: at $2.99, you make like a lot more money (especially if you are a good writer). A 70% royalty on $2.99 is worth about $2.10 on each copy you are able to sell, which lets face it is really good. It’s particularly profitable if you wind up promoting your book well and selling thousands of copies.
So what happens when you drop the price of your ebook below that $2.99 price point? Amazon then takes 65% and you end up with a measly 35% royalty payment. That’s a huge impact to your bottom line, which is why so many authors gravitate towards the 70% royalty. They’ll wind up charging $2.99 or more because of that added royalty percentage. Many authors feel that a 35% royalty means that they’re almost giving away their ebooks.
Strategically Selling Your Ebook below $2.99 – Making it up in Volume
If you think that magically pricing your ebook at $2.99 or above is the answer to all your problems, you might be wrong. Some writers who price their books at $2.99 might sell only 100 copies (at a royalty payout of about $210). But what if selling 1000 copies of the same ebook was possible by pricing it at $.99? Selling 1000 copies at that price would only qualify for a 35% revenue share from Amazon, but that would net the author about $350. That’s about $140 more than if he or she had priced their book at $2.99.
Try to Hit The Best Seller List: Amazon’s Top 100
Another book pricing strategy is to jigger the price so that it stays on the top 100 bestsellers list for your category. This helps your book have a high visibility and bring in new customers. Ask any author, and they’ll tell you that the key to making good money as an Amazon Kindle ebook author is to hit that top 100 list. So how would you change your pricing dynamically so as to stay on Amazon’s top 100 ebook sellers list?
- Price your ebook at 99 cents for maximum chance of hitting the best sellers list.
- Once you reach the top 100 list, raise the price of the ebook back up to $2.99 or higher (up to $9.99) in order to get that 70% royalty again.
- If sales start to plummet too much, change the price one more time to 99 cents to try and move it right back onto the top 100 list for your category.
- Eventually, no amount of price tweaking will allow you to hit that top 100 list. It’s important to realize that all products have a lifecycle, and this includes e-books as well. When you realize that the life cycle for your book is petering out, try to focus on other projects. Place the price back to the $2.99-$9.99 range to ensure you’ll at least make the 70% royalty payments.
It’s important to remember that although your sales numbers will wildly fluctuate while doing the above strategy, the reason why you’re doing it is to maximize your revenue. So don’t be too caught up with the number of book sales you are making, and try instead to focus on your bottom line.