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Thread: How much is the KU payment this time?


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Permlink Replies: 25 - Pages: 2 [ 1 2 | Next ] - Last Post: Mar 17, 2015 9:14 AM Last Post By: scribblr
kelake2000

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How much is the KU payment this time?
Posted: Mar 15, 2015 7:57 PM
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Anyone know?
extradimensions

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Re: How much is the KU payment this time?
Posted: Mar 15, 2015 8:01 PM   in response to: kelake2000 in response to: kelake2000
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Looks like the February report hasn't come out yet, but it should be posted very soon.
scicop

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Re: How much is the KU payment this time?
Posted: Mar 15, 2015 8:31 PM   in response to: extradimensions in response to: extradimensions
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Although it's supposed to be out the 15th, since it's the weekend, it should be out tomorrow...(monday)
Dan C. Boutwell

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Re: How much is the KU payment this time?
Posted: Mar 16, 2015 10:10 AM   in response to: kelake2000 in response to: kelake2000
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Pulled up my report for Feb. just now. Seems as if it is 1.41 this month. That's up a smidgen. It was around 1.38 last month.
Pineapplelover

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Re: How much is the KU payment this time?
Posted: Mar 16, 2015 10:20 AM   in response to: Dan C. Boutwell in response to: Dan C. Boutwell
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Thank you, Dan! I was waiting for this info, and I was praying for someone else to do the math ;)
David Kersten

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Re: How much is the KU payment this time?
Posted: Mar 16, 2015 10:20 AM   in response to: Dan C. Boutwell in response to: Dan C. Boutwell
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I can confirm, $1.4066 per unit, up from $1.3765 last month.
scribblr

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Re: How much is the KU payment this time?
Posted: Mar 16, 2015 11:15 AM   in response to: David Kersten in response to: David Kersten
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I can confirm, $1.4066 per unit, up from $1.3765 last month.

Interesting. VERY Interesting. Last month they added $5.5 million to the global fund to bring the total to $8.5 million. This month they only added $5.0 million to bring the total to $8.0 million. A quick check with the old calculator shows that the number of borrows is WAY down. It's true that there are less days in February, but the discrepancy is far greater than can be explained by that factor. Has the KU hit it's peak and is now headed down? Are the better books being pulled to be sent for wider distribution because of the mandatory exclusivity requirement? All I have is questions. I guess only Amazon has the answers, and they don't share.
David Kersten

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Re: How much is the KU payment this time?
Posted: Mar 16, 2015 11:40 AM   in response to: scribblr in response to: scribblr
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I noticed the same thing. Oddly enough, Feb was up nearly a million borrows from January. I expected the trend to continue up. To see it drop that much is really interesting.

While I am sure it is a complex combination of many factors, my speculation is one or all of the following factors:
  • fewer name brand authors participating, hence fewer people borrowing
  • fewer subscribers trying out indie authors (or giving up on them altogether)
  • the junk "scamphlets" and poorly written shorts are finally settling to the bottom and the authors of these are giving up easier
  • a LOT of authors bailed from the program and the selection of books dropped substantially.
  • subscribers are tired of shorts and borrowing more long books.

Ideally, I would hope the reasons are things like more subscribers borrowing longer content, but I doubt that is the case.

However, what is interesting to note is that Zon contributed less, which either says they have fewer subscribers investing in KU or they are happy at $1.40 for royalties. If their subscriber base didn't go down, then they have no desire to pay more than the royalties they are at now. Either that or they have been running in "the red" accounting wise, and now that they have a chance to lose less money on the program, they are taking that opportunity.

I think if royalties drop further than they have already, they will see a mass exodus of authors from the program, and perhaps when they dipped below $1.40 they started to see an alarming number of authors leaving.

Like you said though, there is too much to speculate on and not enough information from Zon about it. I would be heavily inclined to believe Zon is fishing for the number that will be high enough to keep enough authors in the pool to have a selection for customers but low enough to be the most profitable.
scribblr

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Re: How much is the KU payment this time?
Posted: Mar 16, 2015 12:34 PM   in response to: David Kersten in response to: David Kersten
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I would be heavily inclined to believe Zon is fishing for the number that will be high enough to keep enough authors in the pool to have a selection for customers but low enough to be the most profitable.

I've been predicting since last year that the longer, better written books, the ones that normally command higher selling prices like $4.99 and up, would disappear once the authors had completed their little experiment with the KU. The KU seems ideal for 'quick and dirty' publishers who produce 99 cent books on their lunch hour. How long Amazon can/will sustain $1.40 payouts on books that should be earning a 35 cent royalty is anybody's guess. I think the Amazon annual meeting is usually held in April. It will be interesting to hear what Jeff says this year, and even more interesting to see how long the stockholders are willing to support him if the losses continue.
David Kersten

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Re: How much is the KU payment this time?
Posted: Mar 16, 2015 1:18 PM   in response to: scribblr in response to: scribblr
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I agree completely. The model is encouraging shorter works and discouraging longer stuff. The only thing that makes me waver in my opinion is the sheer loyalty some people feel toward Amazon. A lot of people think Amazon is the only game in town, and if they aren't really good with numbers they will just trust that Select is serving their better interests.

My novel is priced at $3.99 and I am teetering on the edge of the value of Select.
extradimensions

Posts: 4,140
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Re: How much is the KU payment this time?
Posted: Mar 16, 2015 2:31 PM   in response to: David Kersten in response to: David Kersten
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A problem with this argument is that there was a similar trend BEFORE Kindle Unlimited was introduced:
+ January, 2012 @ $1.60 improved to $2.01 in February.
+ January, 2013 @ $2.23 improved to $2.31 in February.
+ January, 2014 @ $1.93 improved to $2.24 in February.
Amazon tends to sell more Kindle e-books in January because more people receive new Kindles and other electronics that support Kindle during the holidays, and this trend impacts borrows, too. It did so in the days of Amazon Prime, so it's no surprise for a similar trend to apply to Kindle Unlimited.

A little math:
+ $8,500,000 divided by $1.3765 = 6,175,082 for January.
+ $8,000,000 divided by $1.4066 = 5,687,473 for February.
This ratio is down 8%. The difference is less than 500,000. (Note that I haven't offered interpretation of these numbers. It's just a little fun with math.)
Megan Yates

Posts: 182
Registered: 07/10/14
Re: How much is the KU payment this time?
Posted: Mar 16, 2015 2:48 PM   in response to: extradimensions in response to: extradimensions
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extradimensions wrote:
A problem with this argument is that there was a similar trend BEFORE Kindle Unlimited was introduced:
+ January, 2012 @ $1.60 improved to $2.01 in February.
+ January, 2013 @ $2.23 improved to $2.31 in February.
+ January, 2014 @ $1.93 improved to $2.24 in February.
Amazon tends to sell more Kindle e-books in January because more people receive new Kindles and other electronics that support Kindle during the holidays, and this trend impacts borrows, too. It did so in the days of Amazon Prime, so it's no surprise for a similar trend to apply to Kindle Unlimited.

A little math:
+ $8,500,000 divided by $1.3765 = 6,175,082 for January.
+ $8,000,000 divided by $1.4066 = 5,687,473 for February.
This ratio is down 8%. The difference is less than 500,000. (Note that I haven't offered interpretation of these numbers. It's just a little fun with math.)

So, in January (31 days) that would equate to 199,196 qualifying borrows per day, whereas February equates to 203,124 per day, an increase of about 2%.
extradimensions

Posts: 4,140
Registered: 05/19/09
Re: How much is the KU payment this time?
Posted: Mar 16, 2015 2:57 PM   in response to: Megan Yates in response to: Megan Yates
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I suppose January does have a 3-day advantage. ;-)
Megan Yates

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Re: How much is the KU payment this time?
Posted: Mar 16, 2015 3:24 PM   in response to: extradimensions in response to: extradimensions
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extradimensions wrote:
I suppose January does have a 3-day advantage. ;-)
Yep, and here in the UK, it's a little too late in the day for me to work out margins of error, buy I'd hazard a guess that the difference is not statistically significant :)
Ann Eckhart

Posts: 59
Registered: 12/05/13
Re: How much is the KU payment this time?
Posted: Mar 16, 2015 7:08 PM   in response to: David Kersten in response to: David Kersten
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David - "Scamphlets"! Love that term!!! 😂👏
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