Jun 242015
 

WW1A lot of us writer-type folks seem to be freaking out over Amazon’s changes in its payment policies on the relatively new Kindle Unlimited program. The panic attacks are instigated by misleading article headlines that (whether intentionally or out of ignorance) scream to the rafters that Amazon is once again trying to ruin self-publishing. These headlines scream that the ‘Zon is now only going to pay authors by the page read. According to several of the articles I’ve seen, the author will only be paid for the portion of the books that you (the reader) actually read. I’ve seen all sorts of analogies – from the cook only getting paid for the part of the meal you ate, to the musician only getting paid for the part of the CD you listen to. But that’s NOT what’s going on here folks.

All of us who publish through Amazon received the same email, and it says very plainly,

We’re always looking at ways to make our programs even better, and we’ve received lots of great feedback on how to improve the way we pay KDP authors for books in Kindle Unlimited. One particular piece of feedback we’ve heard consistently from authors is that paying the same for all books regardless of length may not provide a strong enough alignment between the interests of authors and readers. We agree. With this in mind, we’re pleased to announce that beginning on July 1, the KDP Select Global Fund will be paid out based on the number of pages KU and KOLL customers read.

(NOTE – the underscore and bold in the above quote were added by yours truly.)

When Amazon began Kindle Unlimited, they had a payment plan in which a KU customer could download a book, and as long as they read 20% of the book, the author got paid an equal part of the KU/KOLL (Kindle Owners Lending Library) pool. For those who aren’t familiar, KU and KOLL are programs that allow certain Amazon members to temporarily download e-books, similar to borrowing from a library, so they can read the books without purchasing them at full price. Amazon gets a membership fee as their compensation, and they put a portion of that into a pool to be split among the authors whose books are loaned out to entice more authors to enter programs that make their work available to those customers.

So as I said, when KU came out, as long as the person downloading the book read 20% of it, the author received credit for an equal share of the pool. It didn’t take long for many authors to figure the basic math on that one. Why write a 200 page book that required a reader to read 40 pages before you got paid, when you could write a ten page “book” that required the reader to only read two pages for you to get the same payment? For many authors, the emphasis on writing quickly shifted from writing and publishing novels, to writing and publishing short stories and serialized fiction. I don’t really begrudge those who when that route. It was a basic business decision, and I think everyone involved knew that it was a way of exploiting a loophole in the system. And I think most realized that it was a loophole that was bound to be closed once Amazon figured out how to do it without screwing everyone over. It was pretty much inevitable.

So all the teeth gnashing, and chest beating about how Amazon is screwing the little guy is, once again, nothing more than a bunch of sensationalist BS. Let’s remember that it was just last year that Hachette was screaming to the rafters about how Amazon was using its “monopolistic” position to squeeze the traditional authors out of their pay? Never mind the fact that Amazon paid indies almost three times more per sale than Hachette, or any of the Big 5 paid their authors. Never mind the fact that Amazon’s “monopoly” (which it absolutely isn’t), exists only by virtue of the fact that there is no other place where a customer can go to shop for a book, look for it using all sorts of search parameters and/or keywords, and find it with a few simple clicks of a mouse. Never mind that Amazon’s customers are the ones who determine which books are the best sellers, not the literary critics at a newspaper who get paid to write the reviews.

Monopoly? How is it a monopoly if I can go to Barnes & Noble, or Google, Kobo, Smashwords, or any other online book distributor to buy most books?

“But Amazon requires indies to sell their books exclusively on Amazon!” No, they don’t. They simply make it more attractive and more profitable for those who do. I have experimented with selling exclusive on Kindle Select, and with selling on all the other online distributors. I have done this on several occasions, watching my sales over months to see where it makes more sense for me to place my books. And I have come to the conclusion that for me, it simply makes more financial sense to sell exclusively on Amazon through Kindle Select. The additional money I make via the KOLL “borrows” more than offsets the few paltry sales I get through the other online distributors.

Now, don’t get me wrong – I don’t have any naïve idea that Amazon is in business to promote indie publishers. They’re in business to make money, as most of us are. But I do admire the way they go about it. They recognize that the ones they have to please are not the authors. And it’s not the big traditional publishing houses. From what I see, nearly everything they have done up to this point is in an attempt to please the customer. Isn’t that a novel concept? A business whose primary concern is for the customer!

So look at it from the customer’s perspective. I (the customer me, not the author me) log onto Amazon, and they have a list of items I’ve searched for, items I’ve purchased, items I’ve put in my wish lists, and just about any other kind of item I’ve looked at on their site. They compare that to items purchased or looked at by other people with similar purchase histories, and they put the items in front of me that, based on comparative shopping, they think I might be interested in.

Looking for a fifty inch flat-screen television with smell-o-vision? Sorry, we don’t have that. But people who have searched for similar items have ended up purchasing this similar item for the low price of…. You get the point. Amazon makes it easy to shop on their site. They want to continue to make it easy to shop on their site. Because that’s what keeps us coming back for more.

I’m not going to change that, and the Big 5 aren’t going to change that.

And I find that refreshing.

And before anyone thinks I’m in favor of this because it doesn’t really affect me, since I don’t write much short fiction, let me point out that I will likely begin losing money on this, too. Not because of the KU issue, but because my books are in Kindle Select. This means that I currently get money for people who “borrow” my books via KOLL. And if you recall, KOLL will now also be thrown into the “pay per page” category. And let’s face it, a lot of people who borrow a book via KOLL probably never read it, or don’t read it all the way through. So yeah, I’ll likely see some money lost. That’s why they call it a business. If I see drastic losses, then it will obviously be time for me to re-evaluate whether or not I keep with the Select program. Right now, I make more through Amazon borrows than I did with Smashwords, B&N, Kobo, et al. If this changes things, then maybe I’ll have to go back to publishing in all the other sites again.

I hope not. That’s a lot of work.

All right. Time to get off my soap box. Time to get back to work on the WIP. Stay safe, everyone.   :bye: