Is 70% Royalty Really 70%?

Is 70% Royalty Really 70%?

A very insightful post for those going the self-publishing route. And a delivery fee? Really, Amazon?

Legends of Windemere

I just found this article about the Amazon 70% royalty rate.  It includes a delivery fee, so you don’t really get 70%.

Here’s some math from the article:

If you upload your 30MB $6.99 eBook file, and are on a 70% royalty plan, you get dinged for a $4.50 delivery fee with every Amazon sale. Your 70% royalty for each sale is actually [$6.99 – (30MB x $0.15)] x 70% = $1.74. Since your 70% royalty is actually only paying you 25% you are then advised to just use the 35% royalty plan because there is no “delivery fee” at 35%. If I wanted to make the $4.89 royalty implied by the 70% plan I would need to price my $6.99 book at $11.50 so as to accommodate the delivery fee.

Another Example:
My $4.99 15MB book at 70% royalty is:
($4.99 – (15 * .15))*.70 = $1.92


View original post 12 more words

One thought on “Is 70% Royalty Really 70%?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s