From Hugh Howey:
I’m having a Groundhog Day moment, here. Indies are getting screwed. Exclusivity is death for authors. We are in coach and Big 5 authors are in first class. Our pay is going down.
The same discussion exploded on KBoards back in 2011. They were the Kindle Boards at the time, and self-publishing was a lot more stigmatized than it is today. Amazon launched a program called KDP Select, and if you went exclusive with them, you gained two marketing advantages: Your ebooks became part of the Kindle Lending Library, and you were granted 5 “free” days for every 90-day period of Select.
There was a lot of consternation and hand-wringing from self-published authors at the time. Was it worth going exclusive for the added exposure? Were we crazy to give our books away for free? How much would a borrow pay? Would borrows affect our sales? Our rankings? What about the freebies? Who would be dumb/brave enough to sign up for this?
Those who did sign up tended to do very well. Those free days were as good as gold, and soon we were complaining that we didn’t get enough of them. I know of quite a few indies who credit Select as the tool that allowed them to transition to writing full-time. In fact, it was just a year and a half later that KBoards would erupt with threads complaining about the reduced efficacy of Select. Free downloads no longer had the same effect on ranking. The system was too beneficial for indies, and so Amazon tweaked it.
. . . .
Self-published authors have never had a level playing field on Amazon. (Despite this, they now earn more daily ebook royalties than all the authors at the Big 5 combined.) What we do have is limited control over our prices, 70% royalties in a sensible range, an equal sales platform, and no rank manipulation, like we see elsewhere.
Another thing I mention in my previous KU thread is the danger of paying too much for subscription borrows. That’s what I think is taking place elsewhere. Paying full price for a borrow is not sustainable, and Amazon shouldn’t do it either. Oyster and Scribd are doomed, or they will have to alter their pay structure or charge more for their services. What I wish Amazon would have done is make KU indie-only and invite publishers to play by the same rules. Asking Amazon to give us full sales commission for a borrow and a 10% read is like asking a manufacturing plant to pay starting wages of $60/hour. It would be fun for a little while, but then they’d have to close the plant. We need something that will last, something fair to readers (who don’t get to keep these books), writers, and retailers.
I’d be happy with $2.50 – $3.00 per borrow. I’d also be happy with a tiered payment system. I don’t think 99 cent short stories should be treated the same as $8.99 novels. I think Amazon should add a “tip button” at the end of the reading process to quickly and easily send 1 dollar directly to the author. Or create a way to subscribe to the author’s upcoming content. Or allow us to tie our own newsletters into the Amazon architecture (or build a newsletter system for us, since MailChimp can get expensive).
Link to the rest at Hugh Howey and thanks to Sandra for the tip.