I’ll be honest, it has been with trepidation that I have watched the rise of the eBook. I have loved reading since I was a young child and there is nothing that fills me with more joy than the earthy, sweet smell of a new book and the feeling of printed paper pressed between my fingers. The idea that the magnificent, physical bulk of the novel would be replaced with eBooks that were read on a thin screen was foreign and frankly, terrifying to me. Despite these initial hesitations, even I can see the benefits that eBooks have had for both authors and readers alike.
Now, as the eBook market continues to grow, we run into new business opportunities and dilemmas. Readers are interested in finding the most cost effective and convenient way to enjoy their literature, while authors, publishers, and vendors are looking for the best ways to provide those services. Amazon has recently jumped on the bandwagon of offering monthly subscriptions in exchange for unlimited access to a broad range of eBook titles. Kindle Unlimited has been touted as “Netflix for eBooks” and it certainly appeals to those with a voracious book appetite. The real question is, is it actually good for authors?
The biggest problem for authors is that the Kindle Unlimited program requires exclusivity. There is no denying that gaining access to Amazon’s brilliant marketing is definitely a plus, however does it make up for the inability to diversify and reach readers in more markets than just Amazon?
Kindle Unlimited works on a money pool system. Authors are paid a portion of that pool when a consumer downloads and reads at least 10% of their book. As can be expected when authors are paid from a fixed money pool, the price per book decreases as the total number of books downloaded increases. On average, the payout to the author on Kindle Unlimited hovers around $1.80 per book.
For authors who would normally sell their books for two or three dollars, there is not much of a price difference in what they receive for their books. In fact they might see a significant gain, especially if they receive a noticeable increase in readers. However for those who price their books higher, the drastic change in profit per book can be rather undesirable.
Unsurprisingly Kindle Unlimited benefits Amazon the most. It does seem possible that if you are an author with many eBooks that normally sell for two to three dollars that you might actually receive benefit from Kindle Unlimited. For other authors it appears that you will only lose profit if snared into Amazon’s exclusivity trap. There is much to be said for the ability to appeal to many markets. Unless Amazon gives a greater incentive for limiting your reader pool, or removes their exclusivity clause it seems that Kindle Unlimited is not that great for the eBook author.
For more information on Kindle Unlimited check out these other articles!
Is Kindle Unlimited Bad for Authors?
What Kindle Unlimited is Doing for Author Earnings
