Glossary

How do ebook royalties work?

Updated

A royalty is your share of the list price after the store takes its cut. On Amazon there are two ebook bands — 70% and 35% — and which one you get depends on your list price and a set of conditions attached to the higher one.

The two bands

The 70% band applies within a list-price window — on Amazon, historically $2.99 to $9.99 — and comes with conditions: the price must not undercut the same book elsewhere, the book must be available in certain territories, and a delivery fee is deducted from your share based on the size of the file. Price outside the window and you drop to 35%, with no delivery fee.

The consequence is a cliff, not a slope. A book at $9.99 can pay more than the same book at $11.99, because the higher price falls into the lower band. Run the numbers before you price.

See what a price actually pays, including the delivery fee.

Open the calculator

The delivery fee

Charged per megabyte, on 70% sales only. For a text-only book it is pennies. For an illustrated one — a workbook full of images, a cookbook — it can take a real bite, which is a genuine argument for compressing images before you upload.

Print is calculated differently

A print-on-demand paperback pays a percentage of list price after the printing cost is subtracted, and the printing cost rises with page count. A long book at a low price can pay nothing at all, or be rejected for being priced below its own cost to print.

Related terms

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