The other day my wife purchased a Kindle (there goes civilization as we know it) and also bought several books, one for $1.59. Thinking like any writer, I asked, “what kind of royalties does that author get from a book selling for $1.59 on a Kindle?”
We asked a good friend who is in the book business about e-book royalties from selling a book on a Kindle and her email reply was:
“The writer’s agent should have negotiated an e-rights royalty which is
less than the standard hard cover 12 1/2 percent but is based on the wholesale price which is surely higher than Amazon charges. This is what’s making publishers nuts. For the time being Amazon is charging these low prices. A loss leader to sell their devices. But in the long run they’ll probably raise prices. Publishers would prefer that Amazon spend energy selling print books.”
Ain’t that the truth!