How print book royalties work

Catrin Lewis

Active Member
This could also go in What Made Me Unhappy Today? or Things I Learned Today, but it's probably more useful here.

As you've likely already heard, Draft2Digital has just announced a $20 one-time new account setup fee and a $12 annual maintenance fee for accounts whose net royalties don't hit $100 in any given year. I'm not here to weigh in on the rights or wrongs of that. If I decided to list my books on D2D. I doubt the new fees would hold me back. It's just another expense on my Schedule C.

I'm thinking listing with them might be a good idea. So I'm poking around on their site, and, oh look, here's the royalty calculator for them to do your paperback. Let's see if it'd be worthwhile to go wide with print with them.

I plug in the numbers, and what the h-e-double hockey sticks!? Only 29 US cents from a book I'm retailing at $19.95??? The print cost comes out of the 45% royalty figure? Meaning D2D and the retailers it distributes to get $11.26 of every print book of mine they sell???

Make it make sense. But there's more.

I went onto Amazon KDP and ran the figures there. And learned they do exactly the same thing! These past seven years I've had my print book available through them, and I never realized. The difference here is that KDP starts with 60% royalty, and deducts the production costs. This yields me $2.47 a copy, 8.5 times what D2D pays, even with higher print costs. How can an additional 15% make that much difference?

Yeah, yeah, I know. Because, all things being more or less equal, the print costs are coming out of the first 45 points of that 60%. And here's Amazon keeping the remaining $7.98 for its own little self.

But good grief. I always knew I make more money buying author copies and hand selling. I feel like an idiot not understanding exactly why.
 
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Just want to say, yes, objectively-speaking, once I upload my book files, that 29¢ per copy is passive income. But the idea of it sticks in my craw. It's like people leaving D2D altogether over a possible maintenance fee of $12 a year. It's not the amount, it's the look and feel of the thing.

Trying to keep things strictly rational, I'd say the question to list my paperbacks with them comes down to whether it would take sales away from other, more lucrative, channels.
 
The print cost comes out of the 45% royalty figure?
What on earth. That's ridiculous. I didn't know that.

I used my first work, 95,000 wds, as a template. Minimum retail price was $24.52 CAD ($17.83 USD) for 5.5 x 8.5 netting $0.00 royalty. If I charge $29.99, I'll get $2.47 in royalties. Dude, yes inflation exists, but no one's paying $30 for my book in cellulose form, let alone $25.

I guess I'll be selling signed hardcopies in person when I go gold. Maybe I'll slip a picture of my bare ankle in the bonus editions.

At least that $100 dollar target could include ebook sales too. So I don't think it's totally unreasonable a target, especially since most of self-published sales are ebook format anyway.

KDP's higher royalty is tempting though. That's because of exclusivity, right? I don't spend enough time keeping track of this stuff.

It's funny. We've all heard about trade published authors earning a dollar, sometimes less, per book sold, which made sense with the middle men involved. Is one middle man already priced out at this point?
 
My own royalties aren't too bad. It seems unlikely I'll ever make it out of the red, though.

The book I've got for sale is about 89,000 words, and the print format is 6x9 with plain white pages and 11-point font. At $17 CAD, I get ~4 bucks a pop on Amazon. It's definitely more profitable to personally sell author copies, yes, however that will be offset by your time and labour.

Ebooks seem to be where it's at for indie publishing. On Kobo I ask for $3.95, and when I move a copy, I keep $3.06. It's similar for Amazon. I'm only doing print copies on Amazon and ebook everywhere else. Well, I do have print available on B&N but I've never sold a copy and their royalties are lower.
 
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