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e-books and profitability

Stashed in: Books!, Monetization, Kindle!

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Want to know why self-publishing is the hottest trend in the book business right now? Read this and weep.

Reading. Weeping.

Look at Harper’s own numbers:

$27.99 hardcover generates $5.67 profit to publisher and $4.20 royalty to author

$14.99 agency priced e-book generates $7.87 profit to publisher and $2.62 royalty to author.

So, in other words, at these average price points, every time a hardcover sale is replaced by an e-book sale, the publisher makes $2.20 more per copy and the author makes $1.58 less. If the author made the same $4.20 royalty on the e-book sale as he/she would have on a hardcover, the publisher would STILL be making an improved profit of $6.28.

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