Kindle Unlimited per-Page Rate for January, 2017

Image from ShutterStock.

Image from ShutterStock.

JANUARY, 2017 PER-PAGE RATE FOR KINDLE UNLIMITED

The KENP per-page rate for Kindle Unlimited dropped down to $0.004754 for the month of January, 2017.

But I’m not worried:

  • The per-page rate (and Prime borrows before that) generally take a noticeable dip in January. It’s not a surprise. (What’s a surprise is that it didn’t drop in December.)
  • The per-page rate in January, 2017 is much higher than it was in January, 2016.  It was at an all-time low of $0.00411 one year ago. Compared to the previous January, $0.004754 is sweet.
  • The per-page rate has been fairly consistent. It was over half a penny per page for a few months in a row, at a lengthy relative high, and before that, $0.004754 would have seemed like a good number. Again, it’s typical to see a drop in January, so I wouldn’t panic.
  • The KDP Select Global Fund hit a new high, climbing up to $17.8M for January (from $16.8M in December). It’s also typical to see the Global Fund rise in January. It’s a good sign: Amazon paid $1M more than usual, which shows that Kindle Unlimited is holding strong.

Copyright © 2017

Chris McMullen

Per-Page Rate Back Up for June, 2016 (Kindle Unlimited)

KINDLE UNLIMITED PER-PAGE RATE FOR JUNE, 2016

Kindle Unlimited paid $0.004925 per page read, which is up 5% from May’s rate of $0.004686, almost back to April’s rate of $0.00495663.

The per-page rate has flip-flopped up and down 5% every month since March, but every month has been considerably higher than January’s rate of $0.00411.

The KDP Select Global Fund for June was $15.4M for June, 2016, slightly higher than May’s $15.3M.

To see the payout in other countries, see here:

http://the-digital-reader.com/2016/07/17/kindle-unlimited-payout-funding-jumps-in-june-2016/

What does all this mean?

  • The per-page rate has held fairly stable for half a year, between $0.0045 and $0.0050 per page.
  • The per-page rate has risen as high as 5% on multiple occasions. So while it occasionally dips as much as 5%, it rises almost as often.
  • There was a tendency for the per-page rate to dip initially, which also happened when Prime borrows were first introduced, and also happened when Kindle Unlimited was first introduced, but both of those programs stabilized after the first handful of months. It appears that Kindle Unlimited v2.0 has finally reached a point of stability.
  • Kindle Unlimited is thriving. Amazon is paying $15M per month in royalties just for pages read (and that’s on top of All-Star bonuses). The KDP Select Global Fund is still on the rise.
  • Since the Global Fund continues to rise, whereas the per-page rate appears to have stabilized, it looks like the Kindle Unlimited program continues to grow.

Write happy, be happy. :-)

Chris McMullen

Kindle Unlimited Pages Read, May, 2016

Image from ShutterStock.

Image from ShutterStock.

PAGES READ FOR MAY, 2016

For May, 2016, Kindle Unlimited pages read paid $0.004686 per page, which is down 5% from April’s rate of $0.00495663.

Since the per-page rate was up nearly 5% in April compared to March, it’s basically just come back to where it had been.

However, it’s still considerably up compared to January’s rate of $0.00411.

Kindle Unlimited continues to thrive, as the KDP Select Global Fund has risen to $15.3M for May, 2016 (compared to $14.9M for April).

(Sorry I haven’t been active lately with my blog. I’m caught up in more projects than normal. But I’ll continue to update Kindle Unlimited payments. Hopefully, in the coming weeks, I will get back to blogging more regularly.)

Write happy, be happy. :-)

Chris McMullen

Copyright © 2016

Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers

Click here to view my Goodreads author page.

  • Volume 1 on formatting and publishing
  • Volume 2 on marketability and marketing
  • 4-in-1 Boxed set includes both volumes and more
  • Kindle Formatting Magic (coming soon)

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Kindle Unlimited Pages Read: March, 2016

Kindle Image

KINDLE UNLIMITED PAGES READ: MARCH, 2016

The Kindle Unlimited per-page rate held steady at $0.00477885 for March, 2016. It’s nearly identical to the $0.00479 for February, 2016.

Both February and March are up considerably (about 17%) over January’s rate of $0.00411.

So it’s nice to see the per-page rate hold steady at about $0.0048 per page.

There is more good news: The KDP Select Global Fund increased to $14.9M for March, 2016, up 6% from February’s $14M.

This combination is a good sign. Ordinarily, the Global Fund increases when the per-page rate decreases, and the Global Fund decreases when the per-page rate increases. The per-page rate and Global Fund usually exhibit inverse behavior, as shown here.

This time, the per-page rate held steady while the Global Fund increased 6%. Amazon paid $900,000 more in March compared to February, and they paid it at the same per-page rate.

What does this mean? It means that more pages were read in March, and Amazon didn’t reduce the per-page rate to compensate. It’s probably a sign of more Kindle Unlimited subscriptions.

With KDP Select books earning $14.9M in royalties per month just from Kindle Unlimited and Amazon Prime borrows, it’s clear that Kindle Unlimited has become a huge market. Any book not enrolled in KDP Select is missing out on this $15M per month market share, and needs to make up the difference through other venues. Not an easy task, though sales and even borrows usually don’t come easily.

The Kindle Unlimited market itself is highly competitive, with 1.3M books vying for a share of the approximately $15M monthly Global Fund. (But vying against 1.3M books for a slice of $15M is better than vying against 4.4M e-books for sales. The market for sales is much tougher than the market for borrows. The borrows actually help with potential sales, as each borrow helps sales rank.)

This means the average KDP Select book earns about $11 per month from borrows ($15M divided by 1.3M books), though hardly any books actually draw in this exact average. The top books, the KDP Select All-Stars, see a million or more pages read in many cases.

If your book gets over 2300 pages read per month, it’s doing better than the average KDP Select book. (That’s how many pages read it takes to earn the average $11 per month.)

A few other countries:

  • United Kingdom: £0.00303 per page (British pounds). Almost identical to February.
  • Canada: $0.0047 per page (Canadian dollars).
  • India: ₹0.1 per page (Indian rupees).

Write happy, be happy. 🙂

Chris McMullen

Copyright © 2016

Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers

Click here to view my Goodreads author page.

  • Volume 1 on formatting and publishing
  • Volume 2 on marketability and marketing
  • 4-in-1 Boxed set includes both volumes and more
  • Kindle Formatting Magic (coming soon)

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Kindle Unlimited KENP per Page Rate DROP January, 2016

Background image from ShutterStock.

Background image from ShutterStock.

KINDLE UNLIMITED KENP PAGES READ JANUARY, 2016

The KENP pages read rate has reached a record low, paying $0.00411 per page in the United States.

That’s a drop of 11% from the December payout. That’s a substantial change for just one month.

But it’s a drop of 29% from the first month of Kindle Unlimited v2 from July’s $0.0058 per page rate. That’s a much larger drop when put in the long-term perspective.

However, there was also a record high set in January, 2016, with the KDP Select Global Fund reaching $15 million.

That’s a rise of 11% over December’s Global Fund.

And it’s a rise of 30% compared to July. This means that Amazon is paying 30% more money in Kindle Unlimited (and Amazon Prime) royalties than when v2 started.

The KENP per-page rate has consistently dropped, while the KDP Select Global Fund has consistently risen, and by approximately the same percentages (one down, the other up).

Two are main effects going hand-in-hand:

  • More pages are being read through Kindle Unlimited (and Amazon Prime) every month. ← This is definitely a plus.
  • Amazon KDP is paying a little less for each page read every month. ← This is a minus.

NOT A BIG SURPRISE IN THE PER PAGE RATE

The numbers for January, 2016 actually make sense:

  • Amazon sold a record number of Kindle Fire devices on Black Friday.
  • Many customers took advantage of the free trial month.
  • Amazon included free Kindle Unlimited subscriptions during a few of their promotions.
  • Amazon discounted Kindle Unlimited subscriptions during some of their promotions.
  • Some promotions targeted Amazon Prime.

Therefore, we could have predicted:

  • an increase in the number of Kindle Unlimited (and Amazon Prime) subscribers
  • a large increase in the number of pages read
  • many more pages read where Amazon didn’t earn more money from the monthly subscription

Yes, FREE has benefits, but it also has a cost:

  • Those free trial months bring readers, but it costs Amazon money.
  • Those free subscriptions packaged with Kindles during rare promotions bring many more customers and pages read, but it costs Amazon a lot of money.
  • Those discounted subscriptions entice more subscribers, but cost Amazon a little money.

(Amazon ordinarily earns 30% or more on the sale of a KDP Select e-book. What percentage do they earn from borrows? We have no idea. It could be more than 30%. It could be less. Amazon could even take a loss with KDP Select, using it as a loss leader, expecting those regular Amazon customers to buy other products. We don’t know.)

The promotions worked: There were more subscribers and pages read. That’s why Amazon paid an extra $1.5 million compared to December.

But it’s probably not realistic to expect Amazon to absorb 100% of the cost. They passed some of that cost onto the authors, dropping the KENP per-page rate 11%.

Amazon has made Kindle Unlimited viable and substantial. Paying $15 million dollars in royalties each month, that’s a significant share of the e-book market.

And many of those Kindle Unlimited subscribers have taken a chance on indie e-books. This aspect is good for indies.

THE FUTURE OF KINDLE UNLIMITED

I doubt it’s a coincidence that KENPC v2.0 rolled out the month after the KENP per-page rate hit a record low.

Remember, KENPC v2.0 kicked in for February; it had no impact on January’s payout.

If you saw a significant decrease to your KENPC (but realize that actually increased for a few books), that drop on top of the 11% drop for January may seem scary.

Maybe the KENPC upgrade was put in place to help keep the KENP per-page rate from dropping further.

Maybe the per-page rate will actually go up somewhat for February. Probably, some of those free trial months won’t be renewed. The KENPC change may help a little.

Maybe, also, if Amazon is trying to help the per-page rate for the future, they are looking at ways that a few authors or publishers may have been trying to take advantage of the system. Maybe Amazon will help limit that: This could be part of the reason that the KENPC has changed. They might also change the way that KENP pages read are counted (to try to prevent anyone from gaming the system too much).

These are a lot of MAYBE’s. And even if it does rise in February, we will left to wonder if it will start dropping again after that. We are on a downward trend.

If the per-page rate drops too much, down to whatever your magic number is, the question you need to ask is whether you can do better outside of KDP Select than you can inside. It’s not an easy question to answer, and it varies from one author and even one book to the next. (Keep in mind that every borrow helps your sales rank, which is one thing you’ll lose if you switch to the other side.)

We haven’t reached my magic number yet. But I wouldn’t mind if we didn’t dip below $0.004…

Sure, I’d love it if Amazon would pay more per page. But Amazon didn’t ask for my opinion. They offered me a choice: Enroll in KDP Select, or opt out. I enrolled, and I still prefer this option for my books.

But I’m also glad that Amazon promoted Kindle Unlimited, offers free monthly trials, and promoted subscriptions and Kindle devices this holiday season.

If Amazon had given me a choice—do none of those things and leave the per-page rate at $0.0046 per page, or do all of those things and drop the per-page rate 11%—I would have happily accepted the 11% drop. Not everyone will feel that way. But I do.

On the other hand, it started at $0.0058 back in July, and now it’s 29% less, down to $0.0041. I sure would like to see it stop going down…

It will be interested to see how it pays in February and beyond.

KENP PAGES READ BY COUNTRY

Here are the pages read payouts for a handful of countries:

  • United States: $0.00411 per page (US dollars). That’s a drop of 11% from December’s payment of $0.00461.
  • United Kingdom: £0.00262 per page (British pounds). That’s also a drop of 14% from December’s £0.00306.
  • Canada: $0.00476 per page (Canadian dollars).
  • Spain: €0.00408 per page (Euro).
  • India: ₹0.1008 per page (Indian rupees). That’s nearly identical to December.

Write happy, be happy. 🙂

Chris McMullen

Copyright © 2016

Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers

Click here to view my Goodreads author page.

  • Volume 1 on formatting and publishing
  • Volume 2 on marketability and marketing
  • 4-in-1 Boxed set includes both volumes and more
  • Kindle Formatting Magic (coming soon)

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Kindle Unlimited: Global Fund Stability and Marketplace Changes

Image from ShutterStock.

Image from ShutterStock.

KINDLE UNLIMITED UPDATE

Amazon announced that the KDP Select global fund for November, 2015 will be at least $12M.

It has consistently been $11M or more since May, 2015.

So this shows some nice stability.

Under the original Kindle Unlimited scheme, critics used to comment on how Amazon would low-ball the KDP Select global fund, promising around $3M at the beginning of the month, and then providing a much larger fund after the month’s end. Some tried to argue that Amazon was taking a loss because they raised the fund much higher than their initial projection.

When the new Kindle Unlimited unrolled this summer, critics revised their argument, saying that just because Amazon is offering $11M or more up front doesn’t mean they will continue to do this. Maybe it would drop down much lower later on, or maybe after a brief welcoming period, they would revert back to their old habits.

Yet from May thru November, the KDP Select global fund has held steady from $11M to $12M.

This stability is nice, and I haven’t heard such arguments from the critics recently.

Maybe the proponents for the new Kindle Unlimited who argued that the new system is more viable than the old system were right. Maybe it is more viable for Amazon financially, maybe it has added stability.

Whatever the reason, the global fund has held steady for 7 straight months.

The payment for pages read has dropped to just over $0.005 per page. There was a significant drop after the first month of the new Kindle Unlimited program, but that last two months held steady.

A new variable to the KDP Select global fund and to the KENP pages read is the added marketplaces offering Kindle Unlimited.

For example, Kindle Unlimited recently launched to India.

Whereas it costs $9.99 per month to subscribe to Kindle Unlimited in the US, the local India subscription price is the equivalent of $3.00.

This could significantly impact the payment for KENP pages read, and it probably will for October, 2015.

However, Amazon announced that they would revise their one-size-fits-all plan for pages read beginning in November, 2015.

The payments for pages read in each marketplace will take into account differences in local marketplaces. This should help to stabilize the payment per page.

However, there may be a drop for October, 2015 (we’ll find out on November 15), where this wasn’t yet factored into the payment for pages read.

The best news to me was this statement from Amazon KDP:

“Our long-term goal, as always, is to build a service that rewards authors for their valuable work, attracts readers around the world, and encourages them to read more and more often.”

Of course, it’s difficult to balance the rewards for authors with the other goals of attracting readers and getting them to read more.

But I believe this is a great long-term goal, and I do feel that in a number of ways Kindle Unlimited has helped with this goals.

Write happy, be happy. 🙂

Chris McMullen

Copyright © 2015

Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers

Click here to view my Goodreads author page.

  • Volume 1 on formatting and publishing
  • Volume 2 on marketability and marketing
  • 4-in-1 Boxed set includes both volumes and more
  • Kindle Formatting Magic (coming soon)

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What Did Kindle Unlimited Pay for April, 2015?

KU Trends 3

KINDLE UNLIMITED FOR APRIL, 2015

In April, 2015, Kindle Unlimited paid $1.36 per Kindle Unlimited borrow read to 10% (and all Amazon Prime borrows). Looking at the graph above, Kindle Unlimited appears to have leveled off at about $1.40. (But there is a more fascinating number, which I’ll throw out in a few paragraphs.)

$1.40 doesn’t look like much compared to $2 in the days of Amazon Prime only (i.e. no Kindle Unlimited), and if you have a book priced $2.99 or higher, $1.40 is small compared to your royalty for purchases (in most cases).

That’s not the way I look at it. I was getting few borrows when it was Amazon Prime only, and my borrows have shot way up with Kindle Unlimited (without a corresponding sacrifice in sales). I’m earning much more with $1.40 per Kindle Unlimited borrow than I was when I was receiving $2 per Prime borrow.

But the more interesting number, in my opinion, is $9,800,000.

Amazon added a whopping $6,800,000 to their initial commitment of $3,000,000, bringing the KDP Select Global Fund up to nearly $10 million for April, 2015.

KU Trends 3b

The graph above is a good sign for Kindle Unlimited readers and KDP Select authors, in my opinion.

It means that the audience for Kindle Unlimited books has grown substantially and continues to grow.

The KDP Select Global Fund is increasing significantly because there are more Kindle Unlimited subscribers and more books being borrowed and read to 10% through the program.

Amazon paid $9,800,000 in KOLL royalty shares for April, 2015. That money goes to authors who had books enrolled in KDP Select.

Many KDP Select books are benefiting from this increasing payout. Obviously, not all books are, but many are. The potential is there, and many authors are benefiting from it.

The cost is exclusivity. But here’s the question: With the KDP Select Global Fund steadily rising from $2,000,000 to $9,800,000 over the past 9 months, would your book earn more money from Kindle Unlimited than it would from other retailers. It’s always been a tough question that can vary from book to book and author to author (and can only be truly known by trying it both ways), but it seems that the pool for KDP Select books is growing (it’s increased fivefold in 9 months).

Another interesting trend involves the number of books in Kindle Unlimited (about 100,000 of those are from small traditional publishers and are not part of KDP Select):

  • There are 963,814 books in Kindle Unlimited as of May 15, 2015.
  • There were 864,164 books in Kindle Unlimited as of February 17, 2015. This number has risen 12% in 3 months.
  • 43,407 new Kindle Unlimited books have been published in the last 30 days. (That’s about the same figure from February 17.)
  • 87,910 new Kindle e-books have been published in the last 30 days. Nearly 50% are enrolling in KDP Select.
  • There are about 3,000,000 Kindle e-books in all. About one-third are in Kindle Unlimited (whereas about one-half of new releases are opting in).
  • 334,615 of the Kindle Unlimited books are considered short reads (which, by the way, go up to 100 pages). That’s 35%.
  • 13,458 of the books published in Kindle Unlimited in the last 30 days are short reads. That’s 31%. The ratio of short works entering into Kindle Unlimited is actually decreasing, since 31% is less than 35% (contrary to popular myth—we now have proof that it’s not being flooded with short books, but that the percentage of short books in Kindle Unlimited is going down).

Chris McMullen

Copyright © 2015

Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers

  • Volume 1 on formatting and publishing
  • Volume 2 on marketability and marketing
  • 4-in-1 Boxed set includes both volumes and more

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Kindle Unlimited—Amazon Just Paid out $8,500,000 for January, 2015

KOLL GSF Chart

KDP Select Global Fund from July, 2014 thru January, 2015

 

KDP SELECT GLOBAL FUND

Amazon has raised the KDP Select Global Fund significantly since the launch of Kindle Unlimited.

The monthly KDP Select Global Fund had been around $500,000 in the days of Amazon Prime, which grew to around $1,000,000 when Prime expanded to Europe.

This figure doubled to $2,000,000 with the debut of Kindle Unlimited in July, 2014, which was just a partial month.

It has grown fast since, reaching $8,500,000 in January, 2015:

  • July, 2014: $2,000,000
  • August, 2014: $2,875,000
  • September, 2014: $4,700,000
  • October, 2014: $5,000,000
  • November, 2014: $5,500,000
  • December, 2014: $7,250,000
  • January, 2015: $8,500,000

This suggests to me that the Kindle Unlimited subscriber base has grown tremendously.

Since Amazon is paying $8,500,000 in royalties through Kindle Unlimited for the month of January, 2015, this shows that this is a significant share of the digital market.

Not every book in KDP Select is benefiting from this, but very many are, which is why Amazon quotes a 95% (or higher) renewal rate in KDP Select each month. That is, most authors and publishers in KDP Select have been content enough with the program to continue their books’ enrollment.

KOLL PAYMENTS FOR KINDLE UNLIMITED

In the days when it was just Amazon Prime, the monthly KOLL payment had averaged around $2 per book.

The KOLL payment has dropped significantly compared to those days, but borrows are way up (overall).

If your sales have held steady and you’re seeing those increased borrows, this is a great combination. In this case, the drop in KOLL payments doesn’t matter. There are many authors in KDP Select who are enjoying this.

Some authors’ sales and/or borrows are declining. But if so, it may not have anything to do with Kindle Unlimited. With so many other books being released and so many other authors marketing their books, sales have a natural tendency to drop off at some point, unless you continue to deliver fresh content to the market and implement effective continued marketing of your own. Plus, after January, many books’ sales tend to decrease. It’s a seasonal trend. There are so many factors involved, it’s very hard to pinpoint a single culprit when sales turn south.

I look at two things in a recent announcement from KDP:

  • The 95% renewal rate in KDP Select shows that the vast majority of KDP Select authors are content with the program.
  • This quote: “Total earnings on titles priced $2.99 or greater are growing faster than the overall average. The same is true for titles 150+ pages in length.” It looks like many serious authors with long-term goals are thriving in KDP Select.

KOLL payments have started to level off around $1.40 per book. In January, 2015, KOLL paid $1.38 per book. Here is the trend:

  • July, 2014: $1.81
  • August, 2014: $1.54
  • September, 2014: $1.52
  • October, 2014: $1.33
  • November, 2014: $1.39
  • December, 2014: $1.43
  • January, 2015: $1.38
KOLL Chart

KOLL payments from July, 2014 thru January, 2015

 

Chris McMullen

Copyright © 2015

Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers

  • Volume 1 on formatting and publishing
  • Volume 2 on marketability and marketing
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Kindle Unlimited Myths

Kindle Myths

KINDLE UNLIMITED MYTHS

There are many myths about KDP Select floating around.

We now have several months of data, including data released directly from KDP.

In some cases, these facts debunk popular myths.

Let me begin by answering a question that may be on many authors’ minds, and then I’ll get to the myths vs. facts about Kindle Unlimited.

WHAT DID KINDLE UNLIMITED PAY IN DECEMBER, 2014?

Kindle Unlimited paid $1.43 per download read to 10% in December, 2014.

This brings me to the first myth.

MYTH #1: KINDLE UNLIMITED IS GOING DOWN EVERY MONTH

Actually, it’s gone up a little the past two months.

In October, 2014, it was $1.33. It climbed up to $1.39 in November, 2014, and again to $1.43 in December, 2014.

Despite the extra holiday traffic in December—especially, the after-Christmas traffic with people who received new Kindles—the Kindle Unlimited payments went up.

I think that’s a great sign.

MYTH #2: MANY AUTHORS ARE DROPPING OUT OF KDP SELECT BECAUSE THE ROYALTIES ARE TOO LOW

Amazon released data today (January 15, 2015) that contradicts this myth.

According to Amazon’s announcement, the renewal rate for KDP Select has remained above 95% each month in 2014.

Have you heard that 25%, 50%, or even 70% of KDP Select authors are dropping out of Select? Have you heard that soon there won’t be any good books to read in Kindle Unlimited? Wrong!

Fewer than 5% are dropping out.

This also shows that the vast majority of KDP Select authors are content (at least) with the KOLL payments.

At least, many feel that the benefits of staying in outweigh the cons of leaving, or continue to wait one more month to see which way things are headed.

With another month of the KOLL payments increasing, they’re headed in a positive direction.

MYTH #3: AUTHORS ARE LOSING MONEY WITH KINDLE UNLIMITED

In an announcement released by Amazon today (January 15, 2015):

  • KDP Select authors have seen faster “a la carte sales growth” than both KDP overall and Kindle overall during the five full months of Kindle Unlimited.
  • The total royalties paid to KDP Select authors for the full five months of Kindle Unlimited “more than doubled” in comparison to the same data from 2013.

No wonder there is a 95% renewal rate.

For every author who is losing money with Kindle Unlimited, there are several others whose books are thriving in the program.

MYTH #5: KINDLE UNLIMITED FAVORS 99-CENT E-BOOKS

This myth comes from the notion that 99-cent e-books earn the same Kindle Unlimited royalty as $9.99 e-books. In fact, for a 99-cent e-book, the KOLL payment actually exceeds the list price. Imagine earning $1.43 for a 99-cent book, instead of the usual 34 cents.

The worry is that more authors will put out less effort, writing shorter and shorter books.

But wait! That doesn’t mean that Kindle Unlimited subscribers are suddenly going to start preferring e-books that reflect less effort! Most authors who write shorter e-books will discover that the shorts market isn’t easy to crack.

Here’s the FACT:

According to Amazon’s announcement today, “total earnings on titles priced $2.99 or greater are growing faster than the overall average. The same is true for titles 150+ pages in length.”

Aha! Kindle Unlimited subscribers aren’t diving down for shorter e-books after all. They’re looking for a good value, just as might be expected.

A related worry is that authors of $2.99 and higher e-books will put out of the program, so all that will be left are shorter e-books.

But here’s another FACT: There is a 95% renewal rate. With KDP Select authors seeing the fastest Kindle growth, many will be staying in the program.

MYTH #6: AMAZON DOESN’T CARE IF THE KINDLE UNLIMITED PAYMENTS GO DOWN

Back in the days where there was only Prime, the KDP Global Select Fund was around $1,000,000.

This jumped up to a few million when Kindle Unlimited came out.

In December, 2014, the KDP Global Select Fund started at $3,000,000.

Amazon added another $4,250,000 on top of this.

This brings the December, 2014 KDP Global Select Fund up to $7,250,000.

They more than doubled the three-million dollar starting value.

That’s a lot of money.

Amazon paid a huge sum of money, much more than originally announced.

Amazon did this to raise the KOLL payments up to $1.43 from November.

They could easily have dropped it down to the $1.20’s, not much lower than it had been, and this small difference would have saved Amazon a very large sum of money.

To me, this shows that Amazon wants to retain the authors who’ve remained in KDP Select, by trying to prevent the KOLL payments from dropping too low.

MYTH #7: AMAZON DOESN’T CARE ABOUT AUTHORS

I know, Amazon is first and foremost a business. The number one priority is profit, right?

But the customer is paramount toward long-term profit, and Amazon has proven itself to be focused more on long-term gains than short-term gains (sometimes to the dismay of its investors).

Amazon has also demonstrated itself to be strongly oriented toward customer satisfaction.

Amazon rolled out its red carpet to indie authors who were being rejected time and again. Amazon has thrived from this decision, and continues to do so.

Amazon pays upwards of 70% royalties to indie authors for sales.

Kindle Unlimited is benefiting indie authors. KDP Select authors are seeing faster growth than non-Select Kindle authors. Amazon released data to support this today.

In Amazon’s announcement today, they specifically mentioned great feedback that they have received from authors, and that they are considering this feedback and how to continue to improve Kindle Unlimited for both authors and readers.

Amazon needs the support of both authors and readers to make Kindle Unlimited work.

Amazon just poured $7.25 million into the KDP Global Select Fund for December to raise the KOLL payments to $1.43 per borrow. That’s a big investment in the program.

MYTH #8: AUTHORS ARE LOSING MONEY BY ENROLLING IN KDP SELECT

If your book is priced $2.99 or higher, your royalty is $2 or more (unless you have a huge delivery fee).

Some argue that if a customer borrows your book through Kindle Unlimited and you earn, say, $1.43, you’re losing money because a sale pays $2 or more.

But here’s the thing: The customer who borrowed the book probably wouldn’t have bought the book.

I’m a Kindle Unlimited subscriber myself. In the past month, I turned down several books that I was strongly considering, but which weren’t in Kindle Unlimited. If they had been in Kindle Unlimited, I would have borrowed them. But they weren’t and I passed.

There are now three main markets:

  • Customers who aren’t in Kindle Unlimited who buy Kindle e-books.
  • Customers who subscribe to Kindle Unlimited who borrow Kindle e-books.
  • Customers who buy non-Kindle e-books.

KDP Select authors reach two of these markets.

The Kindle Unlimited market is a huge potential asset for indie authors. Customers might be willing to try a book they normally wouldn’t have read because they incur no additional cost to take a chance on that book.

MYTH #9: KDP SELECT WAS BETTER WHEN IT WAS ONLY AMAZON PRIME

The KOLL payments were higher when it was only Amazon Prime. The KOLL payment was usually $2 or a little more.

But Amazon Prime customers can only borrow one free book per month.

This means that most books didn’t receive many borrows when it was only Prime.

Kindle Unlimited is paying about 30% less, presently, than in the days of only Amazon Prime.

But there are many, many more borrows through Kindle Unlimited than there ever were through Amazon Prime.

Many KDP Select books are benefiting from these additional borrows. Not everyone, of course.

But according to Amazon’s announcement today, KDP Select authors are seeing the fastest growth, and most authors are content or happy enough to renew their enrollment.

MYTH #10: KINDLE UNLIMITED DOESN’T HAVE MANY CUSTOMERS

Amazon just put $7.25 million into the KDP Select Global Fund for December, 2014.

Yet the KOLL payment was $1.43 per download read to 10%.

That’s a very large customer base. There are millions of downloads read to 10% each month.

The KDP Select Global Fund continues to rise, a sign of a growing customer base.

Chris McMullen

Copyright © 2015

Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers

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