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Discussion Starter · #1 ·
I've seen quite a few threads on authors gifting, or providing smashword coupons. How does it work and how much does it cost the author? I am thinking of gifting some of my short stories.
 

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Actually it just costs you the value of the coupon. You can give 0-66% or 100% discounts in the Smashwords "coupon manager" section of your dashboard. You choose the discount % and they do the rest and you can keep track of all your different coupons and their expiration dates right there.
 

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Actually, it doesn't cost you the price of your book on Amazon, since you make back your royalty (70% or 35%).

Of course, then you have to pay taxes on that royalty.  And you could claim the cost of the gift as a business deduction.

*sigh*  I hate the tax law.  We need to abolish the income tax and put in a national sales tax.
 

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Discussion Starter · #6 ·
Thanks for all your help. I don't suppose gifting on smashwords will help getting reviews on Amazon?
 

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Decon said:
Thanks for all your help. I don't suppose gifting on smashwords will help getting reviews on Amazon?
I haven't seen any reviews on Amazon from my free books on Smashwords, however, if I come across a book I enjoy on Smashwords, and I post a review, I make sure to also post the review on Amazon. Others may do the same.
 

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Discussion Starter · #9 ·
Alex MacLean said:
Actually, I forgot about the royalties with Amazon.
eBooka @99c. I suppose it is like setting an advertising buget if gifting Amazon eBooks eg 100 = $65 cost. + tax if you can't claim back ($11.66) total $76.66. Not sure if I have the math correct.
 

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Discussion Starter · #10 ·
Just remembered, for me to by my books cost and extra$2 per eBook here in Brazil. Does anyone know if I can gift them on Amazon de and pay the German price? Or the same with Amazon.co.uk. The same for Amazon .com if the person receiving the gift lives in America?
 

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The cost of giving a free book on Smashwords is absolutely nothing (unless you consider it a lost sale).

If you want to avoid the $2 whispernet surcharge, you'll have to fiddle with where Amazon thinks you live, because they're basing it on where you're logging in from.  It makes far more sense just to give freebooks using Smashword coupons (particularly since this provides the book to readers in multiple formats).
 

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From an economic perspective, there are two costs here. One is the author's cost, and the other is consumer's cost. The author's cost has been covered.

The consumer's cost is a transaction cost. It consists of the additional time, effort, and bother of getting a book from SW rather than from Amazon wireless. Different consumers will assign different values. However, if an author wants to get a book into the hands of a specific consumer, it can effect the probability that the consumer will actually download the book.

It's a mistake to project our own values onto others. For example, it's a mistake for me to think everyone else would rather pay money to get a wireless download than to go through SW.
 

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You can only write a review for a book on Smashwords if you've bought the book or been given a free coupon. So that's a big plus :)

I sent an email to Amazon about the possibility of a similar system, and was told that they would forward my email to the suggestions team. Which is probably as useful as a water droplet falling into an ocean  ;D
 
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