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Discussion Starter · #1 ·
This past Friday, Amazon price matched my first book on, making it one of the Kindle freebies. Now I'm confused by that looks like a royalty being paid. KDP shows 10K freebies downloaded for the week ending 6/4; 9 units earning at the 35% royalty and the rest at 70%. Last I checked, 70 or 35% of zero is still zero. Not  sure how Amazon has arrived at their royalties calculation, especially since last month, other authors doing similar promotions said they hadn't earned anything. Has the policy changed?
 
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Wait, so it's showing you getting 70% of $2.99 on 10,000 free downloads? So it looks like you've earnec $20,000? I think your best bet is to email them. I saw a little something like this, but I don't think it even amounted to $50.
 

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I believe that if you had selected the 70% royalty option, but posted the book for less (or free) elsewhere, then if Amazon price matches, you get 70% of the lower price (in your case, nothing). If you had originally chosen the 35% royalty option, and Amazon price matches, you get 35% of your original "list price", not the lower price. Amazon did this for our two Oz books which were at B&N for $0.99, but were $1.99 at Amazon. We were FORCED to charge $1.99  by Amazon because of the file size. Yet they price matched, so now we are getting 35% of $1.99 which is $0.70 even though Amazon is only selling them for $0.99!
 

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Discussion Starter · #4 ·
foreverjuly said:
Wait, so it's showing you getting 70% of $2.99 on 10,000 free downloads? So it looks like you've earnec $20,000? I think your best bet is to email them. I saw a little something like this, but I don't think it even amounted to $50.
If only! It's definitely not 20k. I think I will email them for clarification. Thanks.
 
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lyarde11751 said:
If only! It's definitely not 20k. I think I will email them for clarification. Thanks.
Was it even over $100? I'm just curious. I hope you get whatever it is.

jillmyles said:
I thought there was no royalty for a freebie? I am confused.
Yeah, there shouldn't be, but something might've happened where people were buying the book as it was being switched to free or something. At least that's my guess. If I earn more money on it this week I'll be completely stumped...and shocked.
 

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As JAson stated, if someone is purchasing the book while it's being transferred over to "free" it's entirely possible you could end up with a short window of opportunity where you'd receive royalties, despite the new free status. But I wouldn't expect that to last more than a few minutes (and depending on the rate of download, that would probably be under $50).
 
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meromana said:
It could be something like foreign sales. Maybe they can't sell the books for free to some of the foreign countries, and so you are still getting the royalties for those?
Yeah, that is a possibility. If that's the case, I bet tons of people would be seeing some amount of money because of this.
 
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Eltanin Publishing said:
If you had originally chosen the 35% royalty option, and Amazon price matches, you get 35% of your original "list price", not the lower price. Amazon did this for our two Oz books which were at B&N for $0.99, but were $1.99 at Amazon. We were FORCED to charge $1.99 by Amazon because of the file size. Yet they price matched, so now we are getting 35% of $1.99 which is $0.70 even though Amazon is only selling them for $0.99!
For free books, this is wrong. Amazon has explicitly changed their agreements you sign when publishing with them, and they say that regardless of 35% or 70%, if they price-match to free, you get nothing.
 

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Discussion Starter · #11 ·
foreverjuly said:
Was it even over $100? I'm just curious. I hope you get whatever it is.

It's $52.57 (?) and yeah, I hope I get too.

Amanda Brice said:
As JAson stated, if someone is purchasing the book while it's being transferred over to "free" it's entirely possible you could end up with a short window of opportunity where you'd receive royalties, despite the new free status. But I wouldn't expect that to last more than a few minutes (and depending on the rate of download, that would probably be under $50).
I guess I'll have a better understanding when they report the downloads as of 6/11. Waiting to hear their response to the email I sent earlier.
 

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Hi Lisa,

In the week the book went free, you probably sold a few as well.  I had this happen when my book was pricematched to .99 from 2.99.  It looked like this:

                                                                  SOLD    Royalty % List Price  Delivery size Average Royalty  Deliever Cost  Royalty
06/04/2011 Coming Home Julie Sell... B004U2TFCS 50 0 50    70 %      2.99        0.34          1.15                    0.05            38.60
           
You can see how my list price was 2.99 but my average royalty was $1.15 because most of the books were sold at $0.99.

I imagine yours looks something like this only your average royalty is probably a couple of cents??

Julie
 

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Yeah, the reporting is averaged out over a week, so if your book was 2.99 for two days of the week, and then free for the rest, you'd see a royalty reported -- but it would be on the full priced book, and not on the freebies.  It would just LOOK like you were getting a lower royalty on all.

Camille
 

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Discussion Starter · #14 ·
julie sellers said:
Hi Lisa,

In the week the book went free, you probably sold a few as well. I had this happen when my book was pricematched to .99 from 2.99. It looked like this:

SOLD Royalty % List Price Delivery size Average Royalty Deliever Cost Royalty
06/04/2011 Coming Home Julie Sell... B004U2TFCS 50 0 50 70 % 2.99 0.34 1.15 0.05 38.60

You can see how my list price was 2.99 but my average royalty was $1.15 because most of the books were sold at $0.99.

I imagine yours looks something like this only your average royalty is probably a couple of cents??

Julie
Thanks Julie, the 35% on 9 books make sense cause 35% of 2.99 is $1.05. If I multiply $1.05 times 9 books I can understand the the $9.45 KDP says I've earned:

06/04/2011 On Falcon'... Yarde, Lis... B003TFEMBQ 10Downloads 1Return 9NetSales 35 % $2.99 N/A N/A N/A $9.45Royalty

It's this that has me stumped.

06/04/2011 On Falcon'... Yarde, Lis... B003TFEMBQ 10372Downloads 4Returns 10368NetSales 70 % 2.99 0.49 0.00 0.07 $43.12Royalty

As you say, it's royalties earned on a few pennies. Always better than nothing earned. ;)
 

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Yep, that's royalties on full-price copies sold before the book went free.  They are averaged in with the 0.00 royalties earned on the freebies.

Camille
 

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Discussion Starter · #16 ·
I haven't had full details from KDP regarding whether royalties are being earned on freebies, except for an acknowledgment and a brief statement that their royalty scheme has not changed.

I can confirm that there are no changes to our royalty payment policies.
However, I need additional time to look into the information reflecting in your reports. We will contact you with more information within 2-3 business days.

So, I've stopped trying to figure this out. In the second full of my freebie offering:

06/11/2011 On Falcon'... Yarde, Lis... B003TFEMBQ 31Downloads 1Return 30Net Sales 35 %Royalty Rate $2.99 N/A N/A N/A $31.50 Earned
06/11/2011 On Falcon'... Yarde, Lis... B003TFEMBQ 9273Downloads 13Returns 9260Net Sales 70 %Royalty Rate $2.99 0.49 0.02 0.07 $17.10 Earned

I wasn't overly concerned by revenue lost during the freebie, as my goal was to gain exposure for the book. I've changed my pricing back to $2.99, so I'll soon see what impact that has. Also, I haven't seen any steady increase for the other title (unrelated to freebie), still 2-3 sales per day trickling in
 

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There is definitely a glitch in the system somewhere.  One of my books went on sale last Friday, and it's been free ever since.  And yet this week it said that I earned royalties equivalent to a couple of sales (at full price) on several thousand downloads.  Since the book was free the entire time of the sales report, it can't be people who bought it before it went free.  It's small, but it definitely seems to be a glitch to me.
 
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