by Steve Laube
I know what it is like to feel the earth move under my feet having experienced the ’64 Alaska earthquake firsthand. (The above picture is from the neighborhood where we lived called Turnagain Arm.) Therefore I know the difference between a 9.2 Richter scale quake and a tremor that registers near 2.0 on the scale.
Last Thursday Amazon announced they were reducing the royalty payments for authors and vendors who use their ACX service to sell self-published audio books. The amount will change on March 12th for new contracts to a flat rate of 40% instead of the 50%-90% rate they currently pay.
No big deal, right? Sort of like a 2.0 tremor. If you blinked you missed it. And since many don’t have an ACX account to sell audio books they are unaffected. However this should be a reminder to all authors and publishers who use KDP (Kindle Direct Publishing) that Amazon can change their royalty terms at any time.
This is the danger of putting all the proverbial eggs in one basket. If any author chooses to only utilize the economic system of Amazon for their sales they can be vulnerable to any changes. I once met a man who sold the foil that was used to make the dairy creamer packets for McDonalds. He had one client. His job was to search the world for the best price on foil. And he lived in terror of losing his client.
Be very clear, I am not suggesting that this is going to happen. Amazon’s 70% royalty rate on kindle ebooks has not changed. All I am suggesting is that it could.