Archive for Royalties

A short intro to digital media for authors who haven’t got a clue from author, coach, book marketer Lynn Serafinn.

I’m a fairly techie person. I’m on the computer so much, sometimes I think it would be more practical to have a microprocessor implanted directly into my brain so I wouldn’t have to sit at my desk all the time. But although I’m pretty expert with the Internet, social media, WordPress, web pages, etc., there are two areas in which I’m a bit of a late bloomer. One is mobile technology (I’ll be talking more about that in a later issue). I only just got my first “smart” phone (a Blackberry) less than 6 months ago. And while I work with authors ALL the time, the second area to which I am admittedly a late bloomer is the world of digital books—eBooks.

Actually, these two things (mobile technology and digital format books) are very, very much related, and if we authors do not have a clue about them, and how they work together, we are quite likely to miss out on half (if not more) of our potential book sales. In fact, my good friend Tony Eldridge from “Marketing Tips for Authors” recently became a #1 seller SOLELY because of his digital book, and only last week my own new book The 7 Graces of Marketing hit #1 & #2 in Kindle shops on both sides of the Atlantic.

I used to think an eBook was just a PDF file that was pretty much a duplicate of your print book. And up until a few years ago, that was true. Then, along came the Kindle, and a whole new market opened up. But THEN, “smart” mobile technology, such as iPhones, iPads and so many other formats entered onto the scene. It’s a confusing quagmire of technology, and it’s VERY easy to get overwhelmed with the options.

So I thought I’d write a VERY basic introduction to some of the practical considerations for eBook creation and distribution for authors who are self-publishing.

Question 1:
Do you need to bother publishing your book in an electronic format if you have a print edition?

Answer:
ABSOLUTELY YES!!! Amazon actually sells MORE Kindle eBook sales than it sells print books! Can you believe I don’t even own a Kindle yet? What was I thinking? (I’m ordering one next month!)

Question 2:
What eBook formats are there? Which format should I use?

Answer:
There are many formats, but the two you should concern yourself with most are Kindle (a bespoke format from Amazon) and the ePub format, which is used by iPad and other companies.

Kindle is the big leader in eBook sales (having been around for almost 5 years now), but iPad is catching up with currently nearly a quarter of all eBook sales at last count. Also, the ePub format is compatible with many other mobile devices besides the iPad. You should use BOTH formats, as well as PDF.

Question 3:
Where do I have to go to set up accounts for an eBook?

Answer:
My suggestion is to use THREE: Amazon (for Kindle), Lightning Source AND Smashwords for other electronic formats. They all distribute to completely different channels (the only overlap I have found between LS and Smashword Kobo).

For Kindle, go to https://kdp.amazon.com/self-publishing/signin and get started. Be SURE to read all their guidelines before submitting anything. You don’t have to have an ISBN, but I think it’s a great idea to have one.

For Lightning Source, go to http://lightningsource.com. Download their list of “CoreSource” Fulfilment partners (there are probably about 60 of them, including MBS Books, Lulu, CyberRead, The Book Depository, Kobo and many others. They deliver eBooks in Adobe Acrobat ebook Reader, Microsoft Reader, and Palm eBook formats. You WILL need a new ISBN for your eBook version.

If you go to Smashwords at http://smashwords.com you’ll see their distribution partners on their home page as Apple iBookstore, Barnes & Noble, Sony Reader Store, Kobo and the Diesel eBook Store. Again, you don’t need an ISBN, but I think it’s a lot better to use your own, as it associates your book with YOU as a publisher, and not with Smashwords.

Question 4:
How do I get my book into digital format for Kindle and ePub? Do I just upload my PDF of my print book?

Answer:
Nope. Each company has their own formatting guidelines and it’s EXTREMELY important you follow them. If formatting is not your “thing” someone can help you prepare your book for digital format. Smashwords will even send you a list of suggested formatters, who are all quite reasonably priced.

The Kindle Direct site is a bit confusing (I think it’s because their gradually updating their information), but if you hunt around it enough, you’ll also find a of suggested places where you can get your book formatted for Kindle. The one I’ve been using is called “LiberWriter” (LOVE the name!) at http://liberwriter.com/. You can test them out for free, and then if you want to use their services, it’s $25 to use their do-it-yourself conversion, and $50 to have them format and convert for you. They also actually respond to personally to customer service requests (always a plus).

Question 5:
Let’s talk about money. How do I price my book, and what kind of royalties will I receive per sale?

Answer:
The short answer to how to price your book is at LEAST 50% LESS than your print version. So, if your print book sells for $15.95, then price your eBook around $7.95 or less. If, however, you’re using this book more or less as a promotional tool (as opposed to a proper “book”), consider selling for as low as $0.99.

Regarding royalties, it goes like this:

Smashwords
Wholesale compensation = 60% of retail (when sold on sites other than their own)
Example: if your eBook is selling for $7.95, the author would get $4.77.
When your eBook is sold ON the Smashwords site, you get 85%. In other words, if your eBook is selling for $7.95, the author would get $6.76.

Lightning Source
LS take 7.5% taken from net (in other words, the author gets 92.5% of net sales). Net is calculated by taking the list price and subtracting the discount you are giving the distributor. For example, if your eBook is selling for $7.95 and wholesale discount is 50%, net world be $3.98, and the author would get $3.68. Of course, you could set your discount at a much lower rate wholesale discount if you wish to achieve a higher profit (example: at 30% discount, you would receive $5.14).

Kindle
You can get as high as a 70% royalty rate from Kindle, minus “delivery” costs. Deliver costs are relative to your file size. On Amazon.com, the delivery cost is $0.15/mb. So, if your eBook that is selling for $7.95 is 5mb in size, your royalty would be: $7.95 X 0.70 = $5.57 – (5 X $0.15) = $4.82.

NOTE: to qualify for a 70% royalty your Kindle retail price must be between $2.99 and $9.99. If it is higher or lower, you are restricted to 35%. That means that you will actually make MORE money selling your Kindle at $9.99 than you would if you were selling it at $18.99, and you would probably sell a load more Kindle versions of your book if you price it as low as is reasonable.  For example, I make only about $5.00 per print copy of my book that sells at $24.95, but I make almost $7.00 on my Kindle sales that are priced $9.99.

ALSO: The 70% royalty is NOT valid in all countries. If you select 70% and your Kindle sells to someone who does not live in one of the participating countries, you will receive 35% for those sales. It IS valid in countries such as US, UK, Canada, Germany, Italy, France, Belgium, Switzerland, and many others. The 70% royalty is NOT valid (as of this writing) for sales made to residents of  the Netherlands, Norway, Sweden, Denmark, Australia, New Zealand and many other countries. See Kindle Direct for the latest listing of sales territories that qualify for the 70% royalty.

Please note, these prices and calculations are correct as of this writing, and may have changed since that time.

The key idea with eBooks is to get your book OUT in as many formats, and in as many distribution channels you can. Make sure that links to where people can purchase these products is very visible and easy to find on your website.

I hope this short introduction has given you a bit more information about the practical why, where and how of eBooks. There’s a LOT more to talk about, especially how to make the most of your eBook format and how to market it. But, we’ll save that for another day.

I would very much welcome to hear about your own experiences, so pleae LEAVE A COMMENT BELOW or drop me a line at http://spiritauthors.com/contact to let me know what you have learned in your own eBook adventures.

And do subscribe to the Spirit Authors blog for more info and insight into the world of writing, publishing and book promotions.


Lynn Serafinn, MAED, CPCC is a certified, award-winning coach and teacher, marketer, social media expert, radio host, speaker and bestselling author. Her eclectic approach to marketing incorporates her vast professional experience in the music industry and the educational sector along with more than two decades of study and practice of the spirituality of India. In her work as a promotional manager she has produced a long list of bestselling mind-body-spirit authors. She is also the creator of Spirit Authors, which offers training, coaching, business-building and inspiration for mind-body-spirit authors, whether established or aspiring. Passionate about re-establishing our connection with the Earth, she supports the work of the Transition Town network in her hometown of Bedford, England.

Lynn’s Books:

International #1 Bestseller in Business Ethics, Marketing and Communication (Dec 2011)

Spirituality Bestseller (2009):

The Garden of the Soul: lessons from four flowers that unearth the Self (2009)

To contact Lynn for coaching, campaign management or media appearances, please fill in the form at http://spiritauthors.com/contact.

As a book promotion expert and book campaign manager, I receive a LOT of requests for consultations from authors who are preparing to publish their books. Some are experienced authors who have published in the past, either self-published or through a royalty publisher. Others are first-time (and usually self-published) authors. During our initial consultation, I tend to hear many of the same questions again and again. As these questions are so key to authors before they decide whether or not to do a full-blown “bestseller launch” for their book, I thought it might be a good idea to pull together my “Top 10 Most Frequently Asked Questions” I am asked by authors on almost a daily basis.

Q1: How many books will I sell during my online book launch?

First of all, let’s define “the launch” as a 24-48 hour period of time in which we will be driving traffic to buy your book. Asking how many books you will sell during that time is really like asking “How long is a piece of string?” It depends upon so many factors that we can only, at best, give a very broad figure. I have had clients who sell as few as 50 books during a launch and others who have sold around 1000. The average self-published author tends to sell between 300 and 500 books during a launch. Those with major publishers might sell twice that amount, not necessarily because the publisher helps with your promotion, but more because people recognise the “brand identity” of the publisher and are more willing to take a chance on the title. And of course, if you are not a first-time author you will probably sell more books if people know your name already. The key to selling more books is to devote a fair amount of time well before your launch to cultivate and grow your audience. That’s why I spend the first two months of work with my clients developing strategies and systems to build their platform and mailing list before anything else.

Q2: How do I become an Amazon bestseller?

If your book sales are amongst the Top 100 in any category on Amazon, you are technically a “bestseller.” You don’t have to be in the Top 100 of all books. There are dozens of categories and sub-categories on Amazon, and if you achieve a sales ranking in the Top 100 in any of these, you can say you are a bestseller. Of course, it is always nice to hit the “Top 20” or the “Top 5” or (best of all) the #1 sales rank in one or more categories.

Q3: How many books do I need to sell to be an Amazon bestseller?

Again, this is not a question I can answer definitively because being an “Amazon bestseller” is a relative title, and it depends upon: 1) how well other books in your categories are selling on your launch day and 2) how competitive your categories are. Some categories like “Religion and Spirituality” or “Business and Investing” are extremely competitive with thousands of titles up against many famous authors for the top position on the list. Other categories, such as “channelling” or “alternative medicine” are less competitive.

Q4: How can I choose the category I will be in on Amazon?

If you were to ask this question of some of the top publishers (I have), the common answer you will receive is this: “You can’t.”However, I have found this not to be 100% true. Let me explain.

First of all, when you submit a book for publication through Lightning Source (for example), you choose 2 “BIC” (Book Industry Communication) categories, which are standard categories that are used by all publishers and distributors. Now the problem lies in how retailers interpret these categories. Think of the last time you went to look for a book in the shops. Sometimes it might be in the “self help” category, while other times it might be in the “spirituality” section, etc.

Amazon “interprets” your BIC categories according to their “virtual” bookshelf. To make things even MORE confusing, Amazon UK, Canada and US might not interpret your book at all in the same way. Even major publishers have told me they have no real control over this. Some authors find their books placed in very strange categories. BUT here’s the big secret I have found: I your book is not ranking in the right category, you CAN get Amazon to change it via Author Central in the US and the UK. Just write to them and ask them to recategorise your book. My book The 7 Graces of Marketing was placed in the “accounting” category at first (NOT!!). When I wrote to Author Central, they very quickly and painlessly put the book into the cateogries I requested: business ethics and marketing/sales.

If you are unsure of what categories to choose, your best bet to get your book in the RIGHT category is to do some market research to find out which categories other titles appear that you feel are the closest in content or message to your own book. Don’t go for a “top level” category like “Business and Finance” or “Health and Wellness””. Go for a sub, or even sub-sub category. Get it as precise as possible. That will not only help you increase your likelihood of reaching the top of the ranks (as it will be less competitvie) bit it will also increase the likelihood of people who are looking for your book will find it, because Amazon’s system will group it together with similar books.

Then, make triple sure you get placed correctly, do two more things: 1) make sure your title, subtitle, back cover copy and description use keywords that help point the folks at Amazon in the right direction AND 2) start putting some TAGS on your book page that help people find your book.

PLEASE NOTE: All of the above is mainly with respect to PRINT books. For Kindle, you can actually SPECIFY two categories via Kindle Direct. These bypass the BIC settings altogether, as Kindle is an Amazon proprietory format.

Q5: Why don’t I see my book listed in a category on my Amazon listing?

You won’t see your book listed in a category unless it is in the Top 100 of that category. Until that time, all you will see is its overall sales rank, which changes every hour. Amazon US and Canada tend change just past the top of the hour, while Amazon UK tends to change at 40 minutes past the hour.

Q6: How can I find out in which categories Amazon will place my book?

It’s not always 100% reliable, but the best way to “guess” which categories you will appear is to scroll all the way down to the bottom of the screen until you see the words, “Look for Similar Items by Category.” There you will see several suggested categories that are likely to be where your book will be placed when ranked. If these categories look range or irrelevant, refer to Q4 above.

Q7: How can I track my rankings?

So far, Amazon does not have any legacy tracking system for rankings, which means you basically have to watch the rankings yourself like a hawk during the launch, as they change every hour. Typically, my clients and I stay up for the full 24 hour period in shifts, in constant communication on Skype, to watch the rankings. The only way I have found so far to “log” your success is to take screen shots. I use the program “Jing Pro” for this. There is a free version, but the Pro version is very reasonable, and has many worthwhile features. You can download it at http://www.techsmith.com/jing/. DO take screenshots of EVERY stage of your rankings. They make great images to add to your promotions when you are sharing the success of your book with readers, media and event managers. To track your rankings for OVERALL book sales, see Q8 below.

Q8: How can I track my actual sales?

Tracking sales is another matter altogether. Of course, the most reliable method is when you receive your royalty report and payment from your publisher or printer. However, these can some to you months after your launch. There are two ways I have discovered that can give you ball-park figure of your sales during a launch. Once is to use your Amazon Associates link on your purchase page, in which case you will see the sales appear within a few days in your Associates account. Another is to use an online tracker such as Novel Rank at http://novelrank.com, which can show sales on a daily and monthly basis. They also show, in numbers and in graph format, your overall sales rankings (not category rankings) over a given period. Bear in mind, to get the best from this service, you need to start tracking your book on their site several weeks in advance of your launch.

Another option is to sign up for Amazon Advantage, although as far as I can tell, you can only sign up for this if you will be directly supplying Amazon with inventory. If a company such as Lightning Source will be printing your books on demand or you will be using a subsidiary publisher, you will need to speak to them about whether or not you can use Amazon Advantage, as they will be fulfilling the sales and sending you the payments and sales reports (of course they will also have some sort of reporting system for your sales as well, which will tell you your overall sales, not just to Amazon).

Kindle sales are updated once a week in Kindle Direct.

Q9: How much money will I make on book sales during my launch?

This depends completely upon:

  1. How many books you sell
  2. The retail price of your book
  3. The cost of printing your book
  4. What your royalty arrangement is with your publisher (if you have one)
  5. Whether or not you use your Associates account for sales.

Let’s say you have a 250 page book that sells for $15 and you sell 500 books on your launch day. That is a gross intake of $7500. Amazon pays you according to whatever wholesale “discount” you have agreed to sell your books to them. Let’s say you have agreed to sell your book to them for a 55% discount off the retail price (a fairly common figure, although this can vary). That means they will pay your publisher 45% of gross, which is $3375. If you are the publisher, you will receive that money from Amazon.

From that amount, you need to deduct your printing costs. The cost of printing a 250 page book through a company like Lightning Source is around $4.15 ($0.90 per unit and then $0.013 per page), which means 500 books would cost $2075. Deduct that from what Amazon will pay you, and that leaves a net profit of around $1300.

If you are going 100% self-published, you will make the whole $1300. But if you are receiving a percentage of net from your publisher, you would take the percentage from this amount. Many subsidiary presses take 50% of net, which means you would make $650on 500 books. If you are working with a royalty publisher who pays you a given percentage of retail or net, you will have to calculate it accordingly.

If you use your Amazon Associates link during your launch, you can earn between 4% and 7% of your retail sales as a commission. In other words, if Amazon were to sell 500 books at $15 (although they will tend to sell it at a lower price), you would make an extra $0.60 – $1.05 per unit. You ALSO make a commission if your buyers happen to buy other products at the same time. It all adds up, so it’s worth making sure your links are in place during a launch.

Please note that these figures are accurate as of this edit (July 26th, 2011).

UPDATE DEC 2011: I’ll be writng another article in the New Year about chosing the right royalty structure for your publication and different ways to use eBooks/Kindle to drive traffic to your print book. Be sure to subscribe to this blog to stay on top of new info articles.

Q10: What’s the real benefit of doing an Amazon bestseller launch?

I’ll be honest with you: it costs a heck of a lot more to run a bestseller launch than you will receive in immediate monetary returns. I think you have probably already deduced that doing an Amazon bestseller launch is NOT going to make you lots of money selling books. So it does beg the question why people bother to do them at all, and why people like me are continually booked months in advance to do these launches.

So here are some of the real advantages of doing an Amazon launch:

  1. It builds your online platform significantly, which ultimately leads to more business for you
  2. It establishes long-term relationships with dozens of networking partners
  3. It raises your credibility as a professional, which has an impact upon your income
  4. It establishes you as a leading expert in your field, making you a sought-after media guest and keynote speaker
  5. It just plain feels great to say you’re a bestselling (especially a #1 selling) author

Deciding to do a bestseller campaign should not be an impulsive decision, nor should it be entered with rose-coloured glasses. My most successful clients are those who entered our work relationship with this level of understanding. They did not have unrealistic expectations, and they took the “kudos” of their bestseller status to build stronger and more viable businesses that could only have come about as a result of their Amazon bestseller campaign. I think most of these would tell you their decision to do a launch made a positive difference in their business.

I hope this article is useful to any of you who are currently preparing to publish a book in the coming year. Please do leave comments below and feel free to contact me via the contact form at http://spiritauthors.com/contact if you have any questions about this content, or you wish to discuss an upcoming launch.

And, as always, don’t forget to subscribe to the Spirit Authors blog for regular tips for authors, both established and aspiring.


Lynn Serafinn is a transformation coach, book promotion coach, radio host and bestselling author of the book The Garden of the Soul: lessons from four flowers that unearth the Self, as well as the upcoming book The 7 Graces of Marketing: how to heal humanity and the planet by changing the way we sell. She also works as a campaign manager for mind-body-spirit authors and has produced several #1-selling book campaigns. She is the founder/creator of Spirit Authors, a virtual learning environment and community that offers training, coaching, business-building and inspiration for mind-body-spirit authors, whether established or aspiring. As part of her work with spiritual and self-help authors, she also regularly hosts large-scale online virtual events (usually free of charge) with world-class speakers on a range of mind-body-spirit topics. Subscribe to her Spirit Authors blog at http://spiritauthors.com/category/news/ so you can receive more useful tips and news about upcoming online events. While you are there, do check out the excellent and affordable online courses for authors available.

If you are an author seeking 1-to-1 support or campaign managment for your upcoming book launch, you are also invited to request a free consultation by filling in a contact form at http://spiritauthors.com/contact. Please note that full service campaigns require a 6 to 8 month lead-in time, so be sure to contact Lynn well in advance of publishing your book.

Book promotion expert Lynn Serafinn from Spirit Authors shares her tips on what every first-time author should know about royalties, retail price and printing costs before they self-publish a book.


Recently, in one of my LinkedIn Groups, a new author asked, “Does anybody have experience with self-publishing companies and the way they pay royalty fees?” I thought the answer to this question was something many new authors would like to know, so I thought I would share my response with my Spirit Authors readers. Below is a copy of the post I made on December 15th, 2010.

Hi there LinkedIn,

Here’s a breakdown of how most self-publishing royalties work:

By self-publishing companies, I assume you mean “publishers” such as iUniverse (probably the most known, but really only one of many) who set up your book to be distributed via print-on-demand (POD). The company I used for my first book is a small company called Authors Online – http://authorsonline.co.uk. I chose them because they are a small friends-and-family run company who take good care of their clients.

The POD press most often used is a company called Lightning Source. There are 2 major Lightning Source plants (when I last checked), one in Kentucky and one over here in England in Milton Keynes.

These kinds of companies don’t generally get your books into shops, but rather focus on Amazon, B&N, etc. The self-publishing publisher sets up your ISBN and arranges for your book to appear on all these online retailers. But be SURE you read the fine print. I had a scenario not very long ago when one of my clients went with Create Space (Amazon’s own print-on-demand publishing company) and they did NOT place the book on all 6 (now 7) Amazon sites throughout the world, cutting down SIGNIFICANTLY on my client’s sales. So be sure you ask if the company GUARANTEES you will be on all Amazon sites… but (if your book is in English), most especially Amazon US, Canada and UK.

Ok, so here are 7 facts about self-publishing and typical royalty structures:

1) Amazon buys your book for 45% of the retail price. That means, if you book retails for $10, Amazon pays your publisher $4.50 (not you… unless you actually START a publishing company and are selling the books directly to Amazon).

2) From that $4.50, your publisher subtracts their printing costs. Not sure of what they are in the US, but here in the UK, the costs are typically 1p (let’s say 2 cents) per page, plus 70p (let’s say $1.25) for the cover. So a 100 page book would cost $3.25 to print (don’t quote me on the exact figures; these were current as of 18 months ago in the UK. DO ask your publisher these questions).

3) If the book costs $3.25 to print, and you have received $4.50 from Amazon, it means your NET is $1.25.

4) Most self-publishers do a 50/50 split of the net, or in that ball park. That would mean your royalty per book sold is a whopping $0.67. Most payouts are quarterly, starting 4-6 months after publication.

5) Of course, you could also set the retail price higher to ensure you get a higher royalty. The best thing to do is to go online and check out similar books in the same niche, and check out their page count, and see how much their retail price is. Bear in mind, that Amazon will normally sell you book for LESS than retail, but you will still receive 45% of retail unless you tell them you are willing to take less in order to drive up sales (not recommended for first-time author, frankly!).

6) If you go FULLY self-published (i.e., set up your own ISBN, deal with Lightning Press, etc), then your royalty is 45% of retail. Subtract your printing costs from that, and that is your net profit per book. That is what I am doing with my next book.

7) Last option: getting the books printed in bulk (most do this overseas) can drive the cost per book WAY down, but you have a massive front-loaded investment at high risk because the minimum run is usually 1000 books or more to get a good price. PLUS you have the set-up costs, as it is not the same as digital POD. Any time I have seen new authors do this, they end up with a house full of hundreds of unsold books, and feel very discouraged. I don’t recommend it unless you have a solid promotional platform and good distribution set up. ALSO, bear in mind that if you go this route, book distributors tend to take the books on consignment and they don’t pay anything if the books don’t sell. And who do you think is responsible for the marketing? You guessed it – you. Furthermore, they might take 300 books from you when they first come out, but they can RETURN every book that hasn’t sold (or worse–been returned to the retail shops!) after a certain period of time.

BTW, I help self-published mind-body-spirit authors via my site Spirit Authors at http://spiritauthors.com. I’m re-opening Module 3 on self-publishing in February 2011. The course for writing your book (Module 1) and building your online platform (Module 2) are already available. You can take a 7-day test drive of those courses for only $1.

I also do full-service Amazon book launches at http://spiritauthorscoach.com. Drop me a line if you would like to chat.

Warm wishes,

Lynn Serafinn


About Lynn Serafinn, Creator of Spirit Authors

Lynn Serafinn

Lynn Serafinn is a transformation coach, book promotion coach, radio host and bestselling author of the book The Garden of the Soul: lessons from four flowers that unearth the Self.

Her upcoming book, The 7 Graces of Marketing, is coming in June 2011.

She also works as a campaign manager for mind-body-spirit authors and has produced several top-10 book campaigns, including FOUR #1-sellers, in 2010 alone. She created Spirit Authors to offer training, coaching, business-building and inspiration for mind-body-spirit authors, whether established or aspiring. Contact Lynn about YOUR book project at at http://spiritauthors.com/contact.

Be sure to subscribe to this blog for regular book writing and promotion tips (just fill in form at right of your screen).

Sign up for Lynn’s bi-monthly newsletter Creative Spirit (fill in form below) packed with inspirational articles, self-promotion tips, broadcast guide to her radio show, and news about upcoming spiritual author book releases.

Throughout the year, Lynn also hosts large-scale telesummits with world-class speakers on a range of mind-body-spirit topics. Your subscription to Creative Spirit will ensure you’ll be the first to know how to attend these free events.


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