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Discussion Starter · #1 ·
Can someone explain to me the difference between the 75% option and the 35% option?
I can't seem to quite wrap my brain around it.
Thanks,
--Alex
 

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I can understand the confusion on why they ask if you want the 35% option if you're going to list you book at anything above $2.99 That I don't get. Why would anyone choose 35%? Maybe someone can explain that to me.

Basically the way I understand it is you don't have the 75% option unless you list over $2.99. Anything lower your only option is 35%.
 

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Discussion Starter · #4 ·
RonnellDPorter said:
That, and it's not 75%, it's 70%.
My bad. 70%.
But still...at $2.99 or above, is there any advantage to ever picking the 35%?
Why the $2.99 dividing line?
I'm sure there's a good (or rational) reason behind it...I just don't know what it is.
--A
 

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Also, I think if they are sold to certain countries, you only get 35% regardless of the price.  

.99 up to 2.99 is 35%

2.99 up to 9.99 is 70%

I think over 9.99 it goes back to 35%.  Is that right, guys?
 

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I think the reason is probably economical on Amazon's part.  They want you to put them up at an affordable rate and the ideal for them is the 2.99-9.99 as they move at that price.

.99 cent books are great but they would be getting much less so are only offering 35.

I don't believe there would be any reason why an author would go for the 35 if they didn't have to.  I think it looks like a choice but I doubt anyone chooses it as that makes no sense to me either.  :)
 

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Alex, there's a whole gaggle of arguments about the pricing point of a book.

At this point it seems like most people with plays, short stories or first novels tend to make their books $0.99, because they are worried that people might not buy the books at a higher price.

There's another school of thought that uses the $0.99 price point on all of their products, no matter how large in an effort to sell considerably more copies. You need to sell a little over 6 times as many books at $0.99 as you would at $2.99 to make the same profit. Some people do reach this 6 times as many sales level with the lower pricing point (John Locke being one of the most famous).

Others will just use the $0.99 price point to drive a book into the Top 100 and then bump the price back up to $2.99 to get a higher profit (I believe I saw that J.A. Konrath has done this).

Some swear by the $2.99 price point. Others swear by the $0.99 price point. Personally, I've sold more books at the $2.99 price point than I have at the $0.99, but I just released my first fiction book (at $0.99) so I don't have a strong comparison yet.

Regardless of what price point you settle at, keep in mind that publishing is a slow and steady burn and attempts to make quick money now (a higher price point) might lead to fewer sales in the long-term.  Those are my two cents. I'm by no means a veteran of the game, but this is what I've picked up in about a year of reading blogs and message boards on the subject :).
 

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Let's not talk about whether you should choose one or the other -- let's just explain clearly what they are.

The 35% option is what Amazon offered for all books, before the "agency model" took over.  You set the "list price" and you got 35 percent of that no matter what Amazon decided to sell the books for.  Originally you were restricted from offering the book cheaper anywhere else, however.  (They've adjusted that lately.  If you offer the book free elsewhere, and they choose to match the price, you won't get anything.)

That option is still available for all books.

The 70% option is an incentive to get you to price books the way Amazon would like.  Therefore you can choose it for books you price between $2.99 and 9.99.  It's twice the money, except there are a few catches.  One is that they deduct a small fee for the download costs from every sale. (Therefore a huge book priced at 2.99 will make slightly less money than a very small one.)  The other is that you only get 70 percent of the actual sale price.  If Amazon drops the price, you don't get your full royalty.  It's also not available when the buyer is not from the U.S. or U.K.

If you are eligible for the 70% option (i.e. your book is priced between 2.99 and 9.99) you are almost always better off taking it.  You only take the 35% option when you are not eligible.

Camille
 

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Some reasons why an author may choose the 35% option even if they're pricing at $2.99 to $9.99:

1) With the 70% you have to pick up the delivery charge, which in the US is 15 cents per megabyte.  I would guess that if your book is large enough, the delivery charge would eat enough of your royalty to make it feasable to want the 35% without the charge.

2) Books consisting of primarily public domain content must use the 35%, regardless of the price.

3) When you select the 35% royalty, you can opt out of lending.
 

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EliRey said:
I can understand the confusion on why they ask if you want the 35% option if you're going to list you book at anything above $2.99 That I don't get. Why would anyone choose 35%? Maybe someone can explain that to me.

Basically the way I understand it is you don't have the 75% option unless you list over $2.99. Anything lower your only option is 35%.
There are a number of reasons to pick the lower royalty rate especially if your book has a lot of graphics and images that will increase your book's file size.

At the 70% rate, there is a delivery fee that is applied based on the file size of your book. At the 35% rate, there are no delivery fee. In some cases, it is actually more profitable to use the lower royalty rate if you are publishing a graphic novel, text book or children's story with lots of pictures.

EDIT: Here's an example. If your book has a file size of 12,884 K after compression. There is a $1.89 delivery fee when using the 70% royalty plan while there is no delivery fee with the 35% plan. If you sold the book at the 70% royalty rate for $2.99, you would only make 16 cents as opposed to $1.05 at the 35% rate. Even if you upped the price to $4.99, you would still make more money using the 35% royalty rate ($1.61 at the 70% rate minus the delivery fee as opposed to $1.75 at the 35% rate).
 

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Discussion Starter · #12 ·
You guys are excellent
Thanks so much for the clarification(s).
Though I'm sure I remain ignorant, I feel a little more enlightened.
--Alex
 
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