One Man & His Blog

The new economics of book publishing

Kindle in action

From The Guardian‘s profile of Amanda Hocking:

By January last year she was selling more than 100,000 a month. Being her own boss allowed her to set her own pricing policy – she decided to charge just 99 cents for the first book in a series, as a loss leader to attract readers, and then increase the cover price to $2.99 for each sequel. Though that’s cheap compared with the $10 and upwards charged for printed books she gained a much greater proportion of the royalties. Amazon would give her 30% of all royalties for the 99-cent books, rising to 70% for the $2.99 editions – a much greater proportion than the traditional 10 or 15% that publishing houses award their authors. You don’t have to be much of a mathematician to see the attraction of those figures: 70% of $2.99 is $2.09; 10% of a paperback priced at $9.99 is 99 cents. Multiply that by a million – last November Hocking entered the hallowed halls of the Kindle Million Club, with more than 1m copies sold – and you are talking megabucks.

I remain perpetually amazed that so much time and effort from major publishers is going into iPad editions when the Kindle market is just sitting there…


Written by

Adam Tinworth   Adam Tinworth

Adam has been a blogger for over 20 years, and a journalist for more than 25. He currently works as a consultant and trainer, helping people do better, more engaged online journalism.


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