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Posts tagged ‘Kindle Owners Lending Library’

KDP Select or Not?

Yesterday, a FB friend asked whether she should set her new book up on Amazon so it could be “borrowed”. The discussion turned into one a number of people were interested in — in fact, one of the participants asked Sarah if MGC could do a post on KDP Select and Kindle Unlimited from an author’s point of view. Since Sarah is away from home and I didn’t have a topic ready to go this morning, I’m stealing the idea.

I’ve been on the record for some time telling writers that they need to explore how well their books sell on the various different platforms available to us. I know some who sell well on Kobo or Barnes and Noble. Some love Smashwords. But, most of the writers I know have all come to one conclusion: the majority of their sales come from Amazon.

For myself, I had my books on all the major markets for awhile. I used Smashwords first to get into some of them and then moved to Draft2Digital. Of the two companies, I far and away preferred Draft2Digital for ease of use and ease of understanding their reports as well as payment schedules. However, the one thing that was consistent between the two of them was that my Apple sales were almost non-existent. Kobo not much more. B&N I uploaded myself and if I made double digits between them, I had to call it a good month. At the same time, my sales on Amazon were well above 1o to 1. Well above.

So I pulled my novels from the other stores and took them exclusively to Amazon. The first thing I did was sign up with the KDP Select Program. The basic requirement for this program is simple. You agree not to offer your book or short story anywhere else for a period of 90 days. You can set it up so the title is automatically renewed at the end of the 90 day or not. So you aren’t tied into the program if you select it.

The benefits of the program help too. Enrolled titles earn 70% royalties in Japan, India, Brazil and Mexico. You can also choose to enroll your title in the Kindle Unlimited program. More on that in a bit.

Another of the benefits of the KDP Select Program is you can enroll in the Kindle Owners Lending Library (KOLL). What this means is that Prime members can choose to borrow one book a month from the KDP Select books. There is no due date. So they can read the book at their leisure. They can’t borrow another book until that first one is returned. And, as with Kindle Unlimited, you are paid for each “normalized” page read of a book borrowed under KOLL.

Kindle Countdown Deals is another benefit of being enrolled in the KDP Select Program. These are limited time discount deals you can set up.

1) They’re time-based: Not only does this give you more control over how long your book is discounted, but the time remaining for the promotion is visible to customers to increase excitement for the price discount.
2) Customers see the regular price: It’s easy for customers to see the great deal they’re getting, as the regular price is included on the book’s detail page, right beside the promotional price.
3) Royalty rate is retained at lower prices: You will earn royalties based on your regular royalty rate and the promotional price. As a result, if you are using the 70% royalty option, you’ll earn 70% even if the price is below $2.99. (As per the KDP Pricing Page, regular delivery costs apply.)
4) There’s a dedicated website: Customers can discover active Kindle Countdown Deals at http://www.amazon.com/kindlecountdowndeals.
5) You can monitor performance in real time: Your KDP report will display sales and royalties at each price discount side-by-side with pre-promotion performance.

The keys here are that the customers can see they are getting a deal and how long the deal is available for AND you maintain the same royalty rate throughout the sale.

You can also offer your book for free, up to 5 days during the 90 day enrollment period. Note, however, that you receive NO royalties for books downloaded under this promotion.

Then you have Kindle Unlimited. For readers, this is a subscription service that allows them to download up to 10 eligible books at a time without actually buying them. For authors, it is a variation of the KOLL. We get paid not for the number of times a title is downloaded (how it used to be) but for each “normalized” page read. To find out how many “pages” are in your title, you need to go to your Bookshelf. Click on KDP Select Info. Scroll down to Earn Royalties from the KDP Select Global Fund. At the bottom of that section, you will see the number of “normalized” pages for that title.

Now, what does all this mean to an author?

For exclusive rights to your e-book — and it is e-book only, not print or audio — Amazon will automatically enroll you in the KOLL program. From a personal standpoint, I never earned all that much from KOLL. It was great when it first started and I was an early adopter. But as more indies and small presses started taking part, and as some unethical “authors” learned to game the system, the payouts lowered. At that time, everyone earned the same thing. We were paid X-amount per borrow. It didn’t matter how long or short the book or story happened to be. That meant it helped writers of shorter works but penalized those of us who wrote novels. We complained, and so did some readers, and Amazon reworked the payout scheme.

Where my income jumped was with the invention of Kindle Unlimited. I’ll admit I wasn’t sure it would make any difference. After all, how many readers would pay a subscription in order to borrow up to ten books at a time? Then I thought about my reading habits and realized I would save money with KU. First, it meant I’d be more likely to try a new author than before because I wouldn’t be out any money. I could download the book under KU, read until I was hooked or not and then return the book. Second, it is easy. When I go to a book’s product page, I see right there if I can borrow it or if I have to buy it. When borrowing it, I can download it to a specific device just as I can when I purchase it. When I try to download an 11th book, Amazon tells me my limit has been reached and shows me the oldest books borrowed and asks if I want to return it.

From an author’s standpoint, this is a wonderful tool to be used to reach new readers. As noted above, the new rules on payouts are also more fair for writers of longer work than the previous rules were. Yes, folks have gamed the system and Amazon has taken steps to stop it. That is going to happen, be it Amazon or some other entity.

What I have found with the inception of KU is that my normalized pages read has gone through the roof compared to what I used to get under KOLL. My KU payment now ranges anywhere from 1/3 to 1/2 of my monthly royalties. It is higher those months when I have a new title out. What I am hearing from readers who contact me is that they see the announcement for the new title and, if it is part of a series they haven’t read, they will borrow the first book under KU and, if they like it, will then buy it and the other books in the series. I get paid for the number of pages read for the borrow as well as for the subsequent sales.

So, how much do we get paid? It varies based on the money in the global fund (and Amazon sends an email each month detailing how much money is there) and how many titles are enrolled as well as how many normalized pages have been read. I did some quick math and it looks like it runs between $0.006 to $0.004? (or 0.6 cents to 0.4) per normalized page. Based on the figures for June, it came in around $0.0492 cents per normalized page (again, assuming my math challenged brain did the math right). That doesn’t seem like much until you start looking at the bottom line — and you realize that is money you probably would not have made had you not enrolled your book in the KU program. (Figures edited to clarify amounts — asg)

Something else I am seeing is that my short stories are not being borrowed under the KU program at nearly the same frequency as my novels. That may be because folks aren’t worried about spending 99 cents and not liking what they bought.

There is one downside to the KU program for both writers and those readers who also post reviews. Amazon’s algorithms place more weight on those reviews written by “verified” purchasers. Right now, they do not view a review from a KU reader as being from a verified purchaser. So those reviews don’t get as much weight. There has been push-back from both authors and KU reviewers about this. Possibly Amazon will change this in the future. I hope so. Until then, just be aware of it.

So, should a writer enroll in KDP Select and KU? That is up to you. I always recommend an author try other outlets before making the decision. Why? Because they may find that their experience is different from what mine has been. However, if you have done your research and have been following the Author Earnings reports, if you have talked to other authors and asked about their experiences — especially if they write in the same genre you do — then you may have enough information to make a decision without taking time to try out other markets.

For me, it has been an easy decision. I make much more from KU earnings than I did from the other outlets combined.

And now for some self-promo:

I am currently working on Dagger of Elanna, the sequel to Sword of Arelion (Sword of the Gods Book 1).

War is coming. The peace and security of the Ardean Imperium is threatened from within and without. The members of the Order of Arelion are sworn to protect the Imperium and enforce the Codes. But the enemy operates in the shadows, corrupting where it can and killing when that fails.

Fallon Mevarel, knight of the Order of Arelion, carried information vital to prevent civil war from breaking out. Cait was nothing, or so she had been told. She was property, to be used and abused until her owner tired of her. What neither Cait nor Fallon knew was that the gods had plans for her, plans that required Fallon to delay his mission.

Plans within plans, plots put in motion long ago, all converge on Cait. She may be destined for greatness, but only if she can stay alive long enough.

Like all my other books, Sword is available for purchase or for download through the Kindle Unlimited program.