New Amazon policy on book lending

Okay, now this doesn’t sound right. It smells like greed from a thousand miles away; like another way to rip off authors.

This July, Amazon is changing the way it pays authors for books in Kindle Unlimited and the Kindle Owners’ Lending Library. In short, it’s paying the authors a royalty based on pages read, rather than paying authors a royalty each time a reader makes it through 10% of a book.

The Amazon statement explains the new payout:

Under the new payment method, the amount an author earns will be determined by their share of total pages read instead of their share of total qualified borrows.

Here are some examples of how it would work if the fund was $10M and 100,000,000 total pages were read in the month:

  • The author of a 100 page book that was borrowed and read completely 100 times would earn $1,000 ($10 million multiplied by 10,000 pages for this author divided by 100,000,000 total pages).
  • The author of a 200 page book that was borrowed and read completely 100 times would earn $2,000 ($10 million multiplied by 20,000 pages for this author divided by 100,000,000 total pages).
  • The author of a 200 page book that was borrowed 100 times but only read halfway through on average would earn $1,000 ($10 million multiplied by 10,000 pages for this author divided by 100,000,000 total pages).

We will similarly change the way we pay KDP Select All-Star bonuses which will be awarded to authors and titles based on total KU and KOLL pages read.

 

How many self-published authors encounter this many sales? Probably very few.

The following article by  explains in details.

http://www.mhpbooks.com/you-dont-get-paid-unless-people-actually-read-your-book-the-new-kindle-unlimited-royalties/

Maybe it’s time to move on from Amazon. In fact, many authors are talking about taking their publishing elsewhere, like Smashwords. Smashwords distributes to more places, and if you hit a certain amount in sales, they’ll even ship to Amazon.

What do you think?

 

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