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Thread: Confusion about Royalties


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Permlink Replies: 13 - Pages: 1 - Last Post: Feb 9, 2018 11:46 AM Last Post By: Ralph E Vaughan
Rusty Shackleford

Posts: 10
Registered: 01/17/18
Confusion about Royalties
Posted: Feb 9, 2018 8:50 AM
 
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Hello,

My book has been up for a few days. I priced the ebook at $5.99 and checked the 70% royalty option. The first day I got 70 sales so I expect that to be roughly $280 in royalties yet when I look I only see about half that amount. Again my book has only been up for a few days, but will this be fixed and what should I do?
Diana Persaud

Posts: 2,783
Registered: 10/07/13
Re: Confusion about Royalties
Posted: Feb 9, 2018 9:21 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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Rusty Shackleford wrote:
Hello,

My book has been up for a few days. I priced the ebook at $5.99 and checked the 70% royalty option. The first day I got 70 sales so I expect that to be roughly $280 in royalties yet when I look I only see about half that amount. Again my book has only been up for a few days, but will this be fixed and what should I do?


I searched your name but didn't find any current books that match what you claim above.

Getting 70 sales the first day is a heck of an accomplishment. Are you sure they are sales and not *pages read*?

If so, the payout rate for pages read is roughly less than half a penny per page. It varies month to month, but you can use that as an estimate.
Rusty Shackleford

Posts: 10
Registered: 01/17/18
Re: Confusion about Royalties
Posted: Feb 9, 2018 9:25 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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Yeah look up American Carnage Volume 1. I'm sure it's "units sold", not pages read. My book is number two in satire now. Any idea about the royalties?
Diana Persaud

Posts: 2,783
Registered: 10/07/13
Re: Confusion about Royalties
Posted: Feb 9, 2018 9:29 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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Rusty Shackleford wrote:
Yeah look up American Carnage Volume 1. I'm sure it's "units sold", not pages read. My book is number two in satire now. Any idea about the royalties?

Well your book is currently free and enrolled in KU, so I suspect it's pages read, not sales.

The top graph is sales.

The bottom graph is for pages read.

Rusty Shackleford

Posts: 10
Registered: 01/17/18
Re: Confusion about Royalties
Posted: Feb 9, 2018 9:36 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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It's currently free. It wasn't free for the first day when it sold 70 copies.
Rusty Shackleford

Posts: 10
Registered: 01/17/18
Re: Confusion about Royalties
Posted: Feb 9, 2018 9:37 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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I'm looking at the graphs. 72 under net units sold. I'm not talking about free units.
Salamander Mall...

Posts: 1,014
Registered: 10/16/17
Re: Confusion about Royalties
Posted: Feb 9, 2018 10:41 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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Rusty Shackleford wrote:
It's currently free. It wasn't free for the first day when it sold 70 copies.

If you're going to post a link, it's courteous to post a link that doesn't look like a dog's dinner, as in...

https://www.amazon.com/dp/B0796YQVZF/

If you're going to reply to a post, it's also courteous to reply to that post, not yourself.

Selling seventy books the first day is almost miraculous, especially when you couldn't sell a single copy in pre-order. However, if you're looking at graphs, who knows what you're really seeing? I do know that none of the graphs show sales of any kind -- the upper graph indicates orders (not sales) for paid and free e-books, the lower graph only page reads. If you want to see sales, that information is only available on the month-to-date chart.

Now, as to royalties, you only receive a 70% royalty from certain countries under certain conditions. The countries were listed on the pricing page when you published your book. They are also listed in the help pages. When a customer from a country not on that list buys from the .com store you receive a 35% royalty. If your book is as popular as you claim, half or more of your customers could easily be from one or more of those non-70% royalty countries. Additionally, if you are not in Select there are other countries, such as Canada and Mexico, where your royalty is limited to 35%. I hope this information is helpful.

On a side note: hopefully, none of your seventy paying customers will find out they could have saved $6 by waiting a day. Remember what I wrote about refunds and one-star reviews.
Rusty Shackleford

Posts: 10
Registered: 01/17/18
Re: Confusion about Royalties
Posted: Feb 9, 2018 10:49 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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Thanks for taking the time to reply to my post. I'll continue to look into it and follow up on your pointers.
Diana Persaud

Posts: 2,783
Registered: 10/07/13
Re: Confusion about Royalties
Posted: Feb 9, 2018 10:54 AM   in response to: Salamander Mall... in response to: Salamander Mall...
 
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It boggles my mind that an author would get 70 sales at full price (at $5.99 no less) and then IMMEDIATELY set the book to free.

OP,
if you are looking at the Month to Date tab, then it will differentiate between orders and free downloads. You may have orders that have not cleared yet (credit card processors didn't clear it yet), so there will be a difference in what is sold vs what you are paid.
cdalebrittain

Posts: 11,844
Registered: 03/05/11
Re: Confusion about Royalties
Posted: Feb 9, 2018 11:04 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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Look at the month-to-date report (look above the graph). It will show a breakdown of sold books, free books, pages-read, and books returned.

My guess is that you got a lot of returns, either because people didn't realize your book was satire when they bought it, or because they thought, Wait, I paid $6 for this, I'll return it now and get the free copy instead.

If someone returns your book, the graph doesn't budge, because after all the book was still ordered . But the royalties below the graph reflect the return.

Also note that if you sold your book in non-US stores, the royalties below the graph will show how many pounds/euros etc. you earned, and their value won't be included in the dollar-royalties earned (even though when you get paid in 10 weeks it will all be in dollars).

As already noted, if your book is selling like hotcakes, that's the totally wrong time to make it free. Good luck!
Rusty Shackleford

Posts: 10
Registered: 01/17/18
Re: Confusion about Royalties
Posted: Feb 9, 2018 11:08 AM   in response to: cdalebrittain in response to: cdalebrittain
 
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Yeah well I didn't expect it to sell like that on the first day and scheduled free promos long in advance. The book goes back on sale tomorrow. The intent was to run the promo to increase the popularity and hopefully ride the wave. It was kind of a fluke for the book to sell that high. I have some return, but really not many. 85 copies sold, 12 returns.
Diana Persaud

Posts: 2,783
Registered: 10/07/13
Re: Confusion about Royalties
Posted: Feb 9, 2018 11:40 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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Rusty Shackleford wrote:
Yeah well I didn't expect it to sell like that on the first day and scheduled free promos long in advance. The book goes back on sale tomorrow. The intent was to run the promo to increase the popularity and hopefully ride the wave. It was kind of a fluke for the book to sell that high. I have some return, but really not many. 85 copies sold, 12 returns.

Ride what wave?

72 sales the first day would have given you excellent rank and visibility on the Paid list. Switching to free damages your rank (as no books are being sold). However, borrows during this time will help your rank on the Paid list.

Most authors don't set their book to free right after it's published. Especially now that we have KU. Free is a tool but for it to be effective, there needs to be a well planned strategy. All you can do is take notes and learn from it.
Ralph E Vaughan

Posts: 3,604
Registered: 12/01/12
Re: Confusion about Royalties
Posted: Feb 9, 2018 11:46 AM   in response to: Rusty Shackleford in response to: Rusty Shackleford
 
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Rusty Shackleford wrote:
Yeah well I didn't expect it to sell like that on the first day and scheduled free promos long in advance. The book goes back on sale tomorrow. The intent was to run the promo to increase the popularity and hopefully ride the wave. It was kind of a fluke for the book to sell that high. I have some return, but really not many. 85 copies sold, 12 returns.

A return rate of 14% is incredibly huge and, when processed, will depress your ranking even more than will being in the Kindle Free Store. A return rate of 1%-2% is normal, but over the lifetime of a book, not all at once in the first week. It will be awhile before your refund rate gets anywhere near normal. Good luck with your book.
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