Amazon’s 70% royalty
by Rob - January 20th, 2010Sounds pretty good — but note that Tor (well, its parent corporation, but Tor has to toe the line) recently cut ebook royalties paid to author to 20% of net proceeds. Which frankly sucks.
So, for a $9.99 eBook sold on the Kindle under this new scheme:
Tor’s share: $5.60
Amazon’s share: $3.00
Author’s share: $1.40
Other publishers are offering 25% of net as royalties, so:
Publisher’s share: $5.25
Amazon’s share: $3.00
Author’s share: $1.75
Of course, those figures ignore Amazon’s deduction for “electronic delivery costs,” whatever that amount might be. You think Whispernet is free? It isn’t; it’s paid for by the publisher and author when you buy a Kindle eBook.
And the above assumes that the publisher doesn’t farm out its ebook-making to third parties (Tor does), further reducing the claimed net proceeds, and thus further cutting the author’s income.
As we transition ultimately to ebooks, is it really true in a world of no shipping to bookstores, no warehousing, no physical product at all, that the lion’s share should still go to the print publisher? Yes, it’s probably fair now, but it won’t be forever.
Ah, but the publishers cry, we pay advances to authors! True, true, but many publishers have cut their average advances, and I have friends — names you’d all know, Hugo winners included — who have not seen their advances rise in over a decade, despite always earning them out.
Okay, many authors need advances to write books. But it’d be interesting to see for authors with a track record (those who could actually get a bank loan), how the numbers would crunch comparing simply getting a bank loan equal in size to the advance they’re now receiving, using a portion of that to hire a freelance editor for the novel (going rate is roughly $3,000, give or take), and then pay back the loan with interest from the proceeds of the sale of the ebooks? How much further ahead would an already established author come out?
(And, of course, if you didn’t need the advance up front, just cut out all that stuff about the loan.)
And, no, I’m not advocating self-publishing, and especially not for beginning authors (although imagine how well an ad hoc collective of Hugo and Nebula winners and nominees could do with their own electronic imprint); the best way to sell your new book is to have an established audience from your previous ones. But we do live in interesting times.
Visit The Robert J. Sawyer Web Site
and WakeWatchWonder.com