I’ve been in KDP Select for a little over a month. For those of you who don’t know, that’s a program where you sign up as an author, and Amazon pays you a fee for each book their KDP subscribers borrow every month. Fee for borrowing? Sounds great so far. But the big incentive for authors is that Amazon also allows you to list each title you enroll, as free for 5 days per 90, either consecutively, or a few days here and there. In exchange for this, you agree to make your title exclusive to Amazon for the term of the deal – which probably doesn’t matter to Amazon nearly as much as it hurts their competitors. Does that matter? Not to me. At least, not right now. Amazon gives their competition the eye dig, and we win. Right?
The free thing is a double edged sword, as far as I’m concerned. On the one hand, it gives readers a chance to sample books by authors they’re unsure of or unfamiliar with, including me. That’s good for both readers and authors, at least in theory. I say in theory, because there’s also a negative. Three actually, for authors. For readers, it’s almost all good.
The first negative is the commission. In Dec. it was $1.70 per title. That was awesome for those with .99 cent books, but not so much for those with $2.99 and higher books. That meant that if your book was listed for $2.99 you would have seen $2 for a sale, you saw $1.70 for a loan, for a net loss of 30 cents (assuming you were at 70% commission). The deal got worse if you had $3.99 or $4.99 titles, as you were seeing $1.70 instead of $2.50 or $3. Still, the boost to sales that you got from being able to put your book free was worth it.
It also raised the issue of whether a loan was accretive, or if it cannibalized a book sale. Some argued that it was accretive, others said it cannibalized. My experience, having listed several titles in the middle of the month that were steady sellers, was that it cannibalized. I saw the sales numbers drop by 15%, to be replaced by loaned books. That’s just me. I’m not complaining. Just letting everyone know what I noticed. I believe that if you only had one book you could get as a loan per month, you got something you were planning on buying. My experience to date bore that out.
The second negative is that in January, the loan payment dropped to $1.60. That further skews the value proposition for the higher priced books. If one views the delta between the loan rate and a sale as marketing dollars, it makes the price of the free 5 days considerably higher for a $4.99 book than a $2.99 book. It’s still an awesome deal for .99 books, BTW. Get paid more than the book is listed for. Who wouldn’t sign up for that? But it comes at a high cost to more expensive titles. And it raises a legitimate question – is dropping the monthly rate a trend? If so, it’s one many authors will find troubling. Some won’t. But if you enrolled in Dec, it means that your average reimbursement on a loan is in reality south of the $1.70 you thought you’d get. This is too new to rate, but still worth watching.
The associated negative for readers is that the reimbursement favors .99 books, as well as cheaper books, which many believe means lower quality efforts. That means that the perceived benefit would be lower to customers who pay the $80 KDP fee for the year’s privilege of shipping discounts and free books at a rate of one per month, over time. “Big deal. It’s filled with cheapo books.” And so on. Again, not my problem. Just an issue for Amazon more than anything else. I can’t for the life of me see why they didn’t just offer a percentage of the asking price rather than a fixed rate – unless they were planning to lower it. Which is exactly what they did after one month.
The third negative is that the market is saturated with free books. That’s both good and bad for everyone. For authors, it’s bad because it creates a culture where books are something you don’t pay for, but good because it creates a vehicle for folks to sample your wares. It is also bad because there will be a segment of the market that just waits to buy, because they figure they can get your title for free if they just hang out for a while. From a reader standpoint, it creates an overwhelming number of choices that can be off-putting. Now you are playing literary agent, going through the Amazon slush pile. Read the first five pages, toss it. Second five pages, toss that one too. And so on.
So what do you think? As authors, given that a lot of my followers who aren’t clowns pretending to be Latvian prostitutes are authors? Think it is cannibalism? And do you think it is net positive, or negative? And readers. What’s your take?
I’ll be genuinely interested to hear.
For the record, I believe Amazon is doing a hell of a job creating a market for guys like me to make a living self-publishing books, whereas before I was just uninterested in waiting 18 months to see a title come out, and get beer money for the pleasure. They have created a boom for me. For that I am grateful.
But what do you think? Chime in.