Kindle Unlimited: Movin’ on up (September 2017)

KINDLE UNLIMITED PAGES READ, SEPTEMBER, 2017

The Kindle Unlimited per-page rate increased for the second month in a row.

The September, 2017 rate of $0.00443 is a healthy boost over the August rate of $0.00419 and the July rate of $0.00403 per page.

Both of these increases followed the introduction of KENPC v3.0.

The KDP Select Global Fund for September, 2017 is $19.5 million.

Overall, Amazon is paying out more money per month than ever for Kindle Unlimited: The global fund has climbed over 20% over the past year.

That comes to over $200M per year, and that doesn’t even include royalties for ordinary sales—that’s just for pages read through Kindle Unlimited (and to a much lesser extent, Amazon Prime).

Copyright © 2017

Chris McMullen

Kindle Unlimited Per-page Rate Back Up for August, 2017

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KENP RATE FOR AUGUST, 2017

Good news: The per-page rate for Kindle Unlimited bounced back up to $0.00419 per page for August, 2017.

It had dropped down to $0.004034 for July, 2017, which was right on the cusp of dipping below $0.004 for the first time ever.

So it’s nice to see it rise back up a bit. It nearly returned to the rate for June, 2017, which was $0.004223.

Of course, it’s all relative. The per-page rate was very close to $0.005 back in February and steadily declined from March thru July.

So it’s also nice to see August at least temporarily break the trend of declining per-page rates.

Also, remember that Amazon KDP introduced KENPC v3.0 just recently.

The KDP Select Global Fund also hit a record high, $19.4 million for August, 2017.

The global fund has steadily risen over a period of years, which shows a strong and growing Kindle Unlimited program.

Copyright © 2017

Chris McMullen

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

Kindle Unlimited Back Above Half a Penny Per Page

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Image from ShutterStock.

KINDLE UNLIMITED

I remember, many months ago, when the Kindle Unlimited per-page rate first dropped below half a penny per page. This was early after the switch to paying for pages read.

There were many prophecies that it would continue to plunge deeper and deeper and would soon be worthless.

Yet many months later, it has again exceeded half a penny per page (though barely). Not only that, the KENP read rate has held fairly steady for eight months.

All the while, the KDP Select Global Fund has climbed up to $16.2 million, though it had been several million lower when the transition to pages read was made.

Both are signs that Kindle Unlimited is thriving.

Update:  If you’re looking for the exact figure, it is $0.005189724 per KENP read.

Chris McMullen

Copyright © 2016

Kindle Unlimited vs. the Naysayers #PoweredByIndie

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Images from ShutterStock

KINDLE UNLIMITED: CURRENT STATUS

Back in January, Kindle Unlimited had taken a little dip (which happens every holiday season), and the naysayer propaganda was in full force.

It’s now October. For the year 2016, Kindle Unlimited has beaten the propaganda.

  • Paying $0.00497 per KENP page read for September, Kindle Unlimited has been amazingly stable since February.  That’s 8 months strong.
  • Presently at a relative high of nearly half a penny per Kindle page read, the payout hasn’t suffered the continual drop that had been predicted. There have been some pleasant jumps, and not just with the September payout.
  • Here’s another cool fact: There are now 1.4 million books enrolled in Kindle Unlimited. There were 860,000 books enrolled in February, 2015.  That’s an increase of over half a million books in 1.5 years (a 60% increase). Remember all the stories about indie authors running for the hills? The data shows otherwise.
  • My favorite number is $15.9 million. That’s the KDP Select Global Fund for September, 2016, another of many record highs. Amazon continues to pay more and more money in Kindle Unlimited royalties. Amazon will pay close to $200,000,000 in royalties for Kindle Unlimited and Amazon Prime borrows for the year 2016 (that’s aside from the royalties for the sales of those books; we’re just talking borrows), and that’s in addition to what they pay for All-Star bonuses (that’s right, the All-Star bonus isn’t taken out of the Global Fund, it’s paid in addition to it; I asked KDP about this specific point).

$200 million in royalties for Kindle Unlimited pages read in one year: That’s a significant share of the e-book market, and a rather indie-friendly share, too.

The continued rise in the KDP Select Global Fund and a fairly stable payout of just under a half-penny per page (though it will probably take its usual dip in December and January, and then likely return next February) suggest that the Kindle Unlimited customer base continues to grow. A great sign.

With 1.4 million books to choose from, with nearly 50,000 added just in the last 30 days, there is also growing competition for this customer base. The way to deal with the increased competition is to keep writing, try to write better, and try to improve your marketing skills. Competition is a good sign. It helps to bring in more customers, and it shows that this market is worth competing for. Good writing and marketable ideas help to provide good long-term prospects.

Celebrate Great Indie Writing with the #PoweredByIndie Hashtag in October, 2016

You can find some great indie writing in Kindle Unlimited, for example.

Many of those 1.4 million books were self-published. There are 100,000 or so traditionally published books in the mix, too; it’s not exclusive to self-publishing. But indie authors have really helped to make Kindle Unlimited strong enough to attract and grow a significant customer base.

Kindle Unlimited, in a strong way, really is #PoweredByIndie. But we must also give credit to Harry Potter, Hunger Games, Amazon’s imprints, and other great titles, too, to help attract customers. It’s great writing that attracts customers, regardless of how it is published.

Strive for great writing and good things are bound to happen.

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)

Follow me at WordPress, find my author page on Facebook, or connect with me through Twitter.

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What Did Kindle Unlimited Pay per Page in August, 2016?

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Image from ShutterStock.

KINDLE UNLIMITED PER PAGE-RATE FOR AUGUST, 2016

The Kindle Unlimited per-page rate dropped slightly, down to $0.004575 per KENP page read for August, 2016 (compared to $0.00481 for July).

There have been small fluctuations, both up and down, for the past several months.

It has held fairly steady for 2016 (while up considerably from $0.04 in January).

The KDP Select Global Fund was $15.8M for August, 2016, slightly higher than each of the past few months.

Write happy, be happy. :-)

Chris McMullen

Kindle Unlimited Per-Page Rate for July, 2016

Images from ShutterStock.

Images from ShutterStock.

WHAT DID KINDLE UNLIMITED PAY PER PAGE IN JULY, 2016?

The Kindle Unlimited per-page rate held steady at $0.00481 per KENP page read for July, 2016.

For the past 4 months, the per-page rate hasn’t drifted below $0.004686 (May) or above $0.00495663 (April).

This stability is nice. (It’s also a lot higher than January’s rate of $0.00411.)

The KDP Select Global Fund was $15.5M for July, 2016, slightly higher than each of the past two months.

Even the Global Fund is showing stability.

Write happy, be happy. :-)

Chris McMullen

Kindle Unlimited KENP per Page Rate DROP January, 2016

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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)

Follow me at WordPress, find my author page on Facebook, or connect with me through Twitter.

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If your KENPC dropped with v2.0, what should you do?

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Background image from ShutterStock.

RECENT CHANGES TO KENPC

(Please also take the survey at the bottom of this post, regarding how your KENPC has changed. You can view the results after you take the survey.)

As of February 1, 2016, Amazon changed the way that they calculate KENPC for pages read for KDP Select books borrowed through Kindle Unlimited and Amazon Prime.

To check your KENPC v2.0, go to your KDP Bookshelf and click the Promote & Advertise button.

According to Amazon, on average the change is within ± 5%, but some books are outside of 5% (I’ve heard a couple upwards of 30%).

Many authors are reporting the changes in their KENPC on Kindle Boards, the KDP community forum, and all over the internet.

I have several books, and most of mine are virtually unchanged.

But while I’ve heard from others whose KENPC remained the same, only a few authors are reporting an increase, while several authors are reporting a drop of 5% or more (like 10% to 15%) or occasionally much more (like 20% to 30%).

Perhaps authors who see a large drop are more likely to show up to a community forum and provide feedback, or are more likely to blog about it.

It’s a general rule that people are more likely to take time to express a complaint than to take time to offer praise.

If we believe Amazon’s report that on average the change to KENPC is less than ±5%, then a drop of 10% or less shouldn’t happen to the majority of books.

If your KENPC remained the same, if anything it seems like KENPC v2.0 should help you out a little.

If your KENPC increased, you should jump for joy.

But…

IF YOUR KENPC DROPPED, WHAT SHOULD YOU DO?

You should look for a proactive solution to your situation. I will offer a couple of suggestions.

If complaining relieves a little stress, well I suppose there is a little good in that. But just complaining, that’s probably not going to solve your problem. (Discussing the problem with others and thinking about the issue critically, however, might lead to a helpful solution.)

If your KENPC v2.0 is exactly 1 page, but used to be multiple digits, it may be a mistake. At least two authors have reported that their novels’ KENPC were reduced to 1 page. That’s most likely just a glitch in the system. If that happened to you, contact KDP support and cross your fingers. (This is a good reason to check your KENPC. Make sure it didn’t happen to you.)

First, you should project what impact this change might make on your royalties.

  • Find the percentage change: (new KENPC – old KENPC) divided by (old KENPC) times 100%. Example: (380–400)÷400×100%=–5%. (The minus sign means it dropped. If your KENPC increased, then your percentage will be +, in which case you should be happy.)
  • How many pages were read in December for that book?
  • Multiply the percentage change by the number of pages read by that book in December and divide by 100%. Formula: (% change) × (# pages read) ÷ 100%. Example: –5%×8,000÷100%=–400.
  • Multiply by $0.0046 (based on the recent per-page rate in the US). Example: –400×$0.0046=–$1.84.

How significant is this number to you? (Suggestion: Compare it to your overall royalties.)

Realize that this projection is based on previous per-page rates. If the KENPC has dropped for most books, on average (that’s a big IF), it’s possible that the per-page rate will go up a bit. But it’s probably not realistic to expect the per-page rate for February to go up by more than 5% (unless other factors contribute to the change), since on average the KENPC hasn’t changed by more than 5%. But you can’t bank on the per-page to increase. It might not.

The main thing you can control is whether or not to uncheck the auto-renewal box for KDP Select (and then you must still wait for the enrollment period to end before you publish your e-book elsewhere). If you’re losing money because either (A) your KENPC has dropped significantly or (B) the per-page rates have dropped significantly (but remember, we don’t “know” what the per-page rates might look like following this change), then the big question to ask is…

Could you make more money by publishing with Nook, Kobo, Smashwords (or Draft2Digital), Apple, etc. than you are bringing from borrows through Kindle Unlimited and Amazon Prime?

That’s a tough question to answer, and varies from book to book. I know authors who have opted out and quickly returned, but I also know a few authors who found success outside of KDP Select. It helps if you have a marketing plan to reach customers who read books on Nook, Kobo, etc. (but it’s not easy to do).

A few other things to consider:

  • Every borrow through Kindle Unlimited or Amazon Prime helps your sales rank.
  • Most Kindle Unlimited customers probably won’t find and buy your book if it’s not in Kindle Unlimited.
  • The KDP Select Global Fund is currently $12M for February, and the pot has steadily increased every month. Kindle Unlimited does have a large reader base.
  • Kindle Unlimited customers are, in general, supportive to indie authors.
  • But there are also now 1.2M books in Kindle Unlimited, with nearly 50,000 added in the last month. It’s also getting more competitive. But there were also 96,000 books added to the Kindle Store last month, so sales are even more competitive.
  • About half the books added to the Kindle Store are exclusive to Amazon, so there may be reduced competition at Nook, Kobo, etc. (It may also be harder to break into some markets at those venues.)
  • Each audience is different. What you really want to know is whether you can successfully reach your audience beyond just Kindle.

I’m afraid the only surefire way to “know” how your book would do outside of Kindle is to try it out. It might work out, it might not.

But there probably is a magic number, where if your royalties for borrows drops too much, you’ll be willing to try it out.

If you had an extreme drop in KENPC, like 20% or more, and you really want out of KDP Select, you might consider contacting KDP support. Amazon usually provides an opt-out clause when there are significant changes to the terms. While most books are seeing smaller changes, if you experienced a steep change, you might be able to persuade support that you weren’t prepared for such a drastic change, and ask if you could please opt out immediately. Well, it can’t hurt to ask, if that’s what you want.

One other thing you might do is see if you can learn why your KENPC dropped. It may not be easy. You’ll need data from other authors. Besides just comparing KENPC’s, you’ll need to find out about the nature of the book. For example, are there many quotations or short paragraphs in books that saw a significant drop in KENPC (I’m not suggesting this is the case; I’m saying you would need to think of possible explanations and test them out; this is just one you would want to test). One trick is you also want data from authors’ whose KENPC increased, to see if the same theory will explain all of the data.

But even if you succeed in learning why the KENPC changed the way it did, it may not be possible to use this knowledge to increase your KENPC. There probably isn’t a simple solution, if KENPC v2.0 successfully prevents people from gaming the system. But if there happened to be some factor that penalizes books for some particular feature and you happened to learn what that was, well you could benefit from that.

Many books tend to see a drop in both sales and borrows once they reach a certain age on the market, and the solution is usually to keep writing and publishing, and learn effective marketing strategies. Whether or not you remain in KDP Select, writing and publishing more books as well as marketing are the keys to long-term success.

(My KENPC’s are almost identical to what they had been, so I feel fortunate. As I said, not everyone’s KENPC has dropped, and I’ve even heard of a few increases.)

DID AMAZON INCREASE ITS PROFITS BY REDUCING THE KENPC?

The KDP Select Global Fund for February is $12M.

No matter how Amazon calculates KENPC, determines KENP pages read, or how much Amazon pays per page in February, Amazon is still paying out at least $12M in royalties for books borrowed through Kindle Unlimited and Amazon Prime.

So this does not appear to impact profits for February.

The KDP Select Global Fund has steadily increased from $11.5M to $13.5M from July thru December of 2015.

The KDP Select Global Fund has committed $12M for February, which makes sense, as December and January are likely to benefit more from holiday Kindle sales.

But there are some things that we don’t know:

  • We don’t know what the KDP Select Global Fund will do starting in March. It’s possible that the KDP Select Global Fund will start diminishing. But then again, that’s always been possible.
  • We don’t know how many customers subscribe to Kindle Unlimited. If Amazon is selling more subscriptions at a faster rate than the KDP Select Global Fund is increasing, then Amazon is increasing its profits. But they could have been doing that all along. How are we to know?
  • It’s possible that the KENPC has dropped a few % overall so that Amazon could prevent the per-page rate from dropping further (or maybe even increase it a little). But the number that affects Amazon’s profits is the KDP Select Global Fund. Whether they increase or decrease the KENPC, they are still paying $12M overall in February. Changing the KENPC just affects the per-page rate and how the $12M is distributed; it doesn’t impact Amazon’s share at all.

Here’s my own personal opinion: KENPC v2.0 was introduced to help prevent authors from gaming the system, and it unfortunately affects everyone’s books in different ways.

(It’s also possible that Amazon is losing money on Kindle Unlimited, at least directly. This program might be a loss leader. Once customers get in the habit of coming Amazon, they start buying other products at Amazon, too.

That’s an important consideration. The main thing Amazon probably wants to do with Kindle Unlimited is keep both readers and authors engaged. Amazon may make much more profits by getting both readers and authors in the habit of visiting Amazon regularly than it could make by adjusting KENPC or per-page rates.)

PLEASE TAKE THIS QUICK KENPC SURVEY

Have multiple books? You can take the survey once for each book.

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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KENPC v2.0 Amazon KDP Changes Normalized Page Counts (February 1, 2016)

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Images from ShutterStock.

KENPC v2.0 February 1, 2016

Amazon KDP changed how it determines the Kindle Edition Normalized Page Count (KENPC).

This affects Kindle e-books enrolled in KDP Select, which can be borrowed via Kindle Unlimited and Amazon Prime.

KDP Select books borrowed through Kindle Unlimited or Amazon Prime pay by the page read, where a Kindle Edition Normalized Page (KENP) is determined based on the book’s KENPC.

(This has no impact on royalties earned through sales, just borrows.)

On February 1, 2016, the method that Amazon uses to compute the KENPC changed.

The new value of KENPC is called KENPC v2.0.

Visit your KDP Bookshelf and click the Promote and Advertise button next to a title to see what its new KENPC is.

According to Amazon, on average the KENPC has changed by 5% or less.

I checked several of my books, which had KENPC’s ranging from 170 to 2039, and the KENPC v2.0 was nearly identical to the original KENPC.

So my books were virtually unaffected by this. I’m curious about your experience with the KENPC change. Is it significant?

One notable change reported by Amazon is that books with a KENPC exceeding 3000 will now be capped at 3000. (When a customer reads 100% of those extremely long books, the author actually earns more from a single book read than the monthly subscription cost.) This only affects a few books, like encyclopedias (which could be broken down into smaller pieces…).

If you want to read the KDP help page describing KENPC v2.0, you can find it here:

https://kdp.amazon.com/help?topicId=AI3QMVN4FMTXJ

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)

Follow me at WordPress, find my author page on Facebook, or connect with me through Twitter.

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