35% or 70%? Right Royalty Plan for Kindle eBook on Amazon KDP
Publishing your eBook on Amazon Kindle Direct Publishing (KDP) opens up a world of possibilities. One of the critical decisions you’ll face is selecting the right royalty plan. Should you opt for the 35% or the 70% royalty option? This blog post aims to help you make an informed choice.
Understanding Amazon KDP Royalty Options
Amazon KDP offers two royalty plans for eBook publishers:
- 35% Royalty Option
- 70% Royalty Option
Each plan has its advantages, requirements, and considerations. Let’s delve into the specifics of each to determine which is better suited for your eBook.
The 70% Royalty Option
Advantages
- Higher Earnings Per Sale: Earn 70% of the list price (minus applicable taxes and delivery costs).
- Access to Promotional Tools: Participate in programs like Kindle Countdown Deals.
- Competitive Pricing: Encourages pricing between $2.99 and $9.99, which is considered the sweet spot for eBook sales.
Requirements
- List Price Range: Your eBook must be priced between $2.99 and $9.99 in the U.S. market (or equivalent in other currencies).
- Delivery Costs: A delivery fee is deducted based on file size (e.g., $0.15/MB in the U.S.).
- Availability: Must be available in all countries where you have publishing rights and where Amazon offers the 70% royalty option.
- Content Guidelines: The content must meet Amazon’s quality standards and not contain public domain content.
Ideal For
- Text-Heavy Books: Novels, non-fiction, and other works with minimal images.
- Authors Seeking Higher Profits: Those who want to maximize earnings per sale.
- Global Distribution: Authors targeting markets where the 70% royalty is available.
The 35% Royalty Option
Advantages
- Flexible Pricing: Set your eBook’s list price between $0.99 and $200.00.
- No Delivery Costs: Avoid fees associated with file size, beneficial for large or image-rich eBooks.
- Fewer Restrictions: More lenient terms regarding availability and content.
Considerations
- Lower Earnings Per Sale: Earn 35% of the list price (minus applicable taxes).
- Limited Promotional Tools: Less access to certain promotional programs compared to the 70% option.
Ideal For
- Image-Rich Books: Cookbooks, photography books, and children’s books with high-resolution images.
- Non-Standard Pricing: eBooks priced below $2.99 or above $9.99.
- Niche Markets: Content that appeals to a specific audience willing to pay a premium.
Factors to Consider When Choosing
1. Pricing Strategy
- Competitive Pricing: If your target price is within $2.99 to $9.99, the 70% option is generally more profitable.
- Premium Content: For specialized content that justifies a higher price, the 35% option allows pricing above $9.99.
2. File Size and Delivery Costs
- Large File Sizes: For eBooks with large file sizes, the delivery costs under the 70% plan can eat into profits.
- Small File Sizes: Text-based eBooks benefit from minimal delivery fees.
3. Geographic Availability
- Global Reach: Ensure the 70% royalty option is available in your target countries.
- Regional Restrictions: If the 70% option isn’t available in certain markets, the 35% option becomes the default.
4. Content Type
- Exclusive Content: The 70% option requires adherence to certain content guidelines.
- Public Domain Works: Such content is only eligible for the 35% royalty plan.
Making the Decision: Which One Is Better?
Opt for the 70% Royalty Option If:
- You can price your eBook between $2.99 and $9.99.
- Your eBook has a small to moderate file size.
- You aim to maximize revenue per sale.
- You comply with Amazon’s distribution and content requirements.
Choose the 35% Royalty Option If:
- Your eBook is priced below $2.99 or above $9.99.
- You have a large file size and want to avoid delivery costs.
- You need flexibility in pricing and distribution.
- Your eBook doesn’t meet the 70% royalty requirements.
Additional Tips
Enroll in KDP Select
- Exclusive Distribution: Requires exclusivity to Amazon.
- Benefits: Access to promotional tools like Kindle Unlimited and Kindle Owners’ Lending Library.
- Impact on Royalties: Can influence your earnings and visibility.
Utilize Promotional Programs
- Kindle Countdown Deals: Available for eBooks under the 70% plan.
- Free Book Promotions: Temporarily offer your eBook for free to boost rankings and reviews.
Monitor International Markets
- Currency Conversion: Be mindful of how pricing translates in other currencies.
- Market Research: Understand the demand and pricing norms in different countries.
Conclusion
The choice between Amazon KDP’s 35% and 70% royalty plans hinges on your specific needs, goals, and the nature of your eBook. For most authors with text-based eBooks priced within the standard range, the 70% royalty option offers greater profitability. However, if you require more flexibility in pricing or have an image-heavy book, the 35% royalty option may be more advantageous.
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Remember: Carefully evaluate your eBook’s content, pricing strategy, and target audience to select the royalty plan that best aligns with your publishing objectives.
