savingrachelI write a lot of stories for a web site called Slashdot: News for Nerds. Today I posted a story on slashdot that may be of interest to the many writers who come to Peace Corps Worldwide about a new business model for making money from your books. There are a lot of interesting comments to the story on slashdot that you may want to take a look at also. Please read and enjoy and hopefully you may learn something that can benefit you in the business of writing.

Joe Konrath has an interesting interview with independent writer John Locke who currently holds the coveted #1 spot in the Amazon Top 100 and has sold just over 350,000 downloads on Kindle of his 99 cent books since January 1st of this year which with a royalty rate of 35%, is an annual income well over $500k. Locke says that 99 cents is the magic number and adds that when he lowered the price of his book “Saving Rachel” from $2.99 to 99 cents, he started selling 20 times as many copies - about 800 a day, turning his loss lead into his biggest earner. “These days the buying public looks at a $9.95 eBook and pauses. It’s not an automatic sale,” says Locke. “And the reason it’s not is because the buyer knows when an eBook is priced ten times higher than it has to be. And so the buyer pauses. And it is in this pause—this golden, sweet-scented pause—that we independent authors gain the advantage, because we offer incredible value.” Kevin Kelly predicts that within 5 years all digital books will cost 99 cents. “I don’t think publishers are ready for how low book prices will go,” writes Kelly. “It seems insane, dangerous, life threatening, but inevitable.”

Story Links:

Stories on Slashdot

Slashdot:  Crime Writers Makes a Killing with 99 Cent E-Books

An Interview with John Locke

The Amazon Top 100 E-Books

Kevin Kelly Predicts all E-Books with Sell for 99 Cents in Five Years