Amazon Offers 70% Royalties to Kindle Authors
Amazon isn’t making any friends in the publishing industry. The online bookseller is tempting authors away from the typical publishing model by offering them a “70% cut of the sale of e-books sold for its Kindle readers, net of digital delivery costs,” according to the Los Angeles Times. The move will no doubt add more tension to the already strained situation between Amazon and big publishers, who’ve been worried about Kindle’s low price tags affecting their profits.
Offering these whopping royalties could be Amazon’s attempt to attract authors away from traditional publishers and grab them before the release of the rumored Apple tablet device.
Authors generally receive royalties in “the range of 7% to 15%,” said vice president of Kindle content Russ Grandinetti in a statement. Seventy percent could be enough to create a definite shift in the book world, but these hefty royalties come with a few conditions. Book prices must be set between $2.99 and $9.99 and at least 20 percent below the price of the print copy—if there is a print copy. Authors are also allowed to sell their books through other sites if they give Amazon the same (or lower) price.
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