1- Platform Commission
Different e-book platforms have varying commission rates. Research the percentage deducted by each platform and determine how this will impact your profits. For example, platforms like Amazon Kindle Direct Publishing (KDP), shabd.in often offer royalty options like 35% or 70%, depending on pricing and distribution settings.
2- Length and Quality of Content
The length and depth of your content can influence reader expectations and pricing. A well-written, thoroughly edited, and professionally formatted e-book may justify higher royalties. Consider investing in high-quality visuals or enhanced formatting if your book needs added appeal.
3- Marketing and Promotion Costs
Factor in the costs of promoting your e-book. These might include ads on social media, email campaigns, or collaborations with influencers. Set royalties at a level that ensures these costs don’t overshadow your profits.
4- Pricing Strategy
Your e-book’s price significantly impacts your royalties. Experiment with pricing strategies such as introductory discounts, dynamic pricing, or tiered pricing to find the sweet spot that maximizes revenue without deterring potential readers.
5- Distribution Channels
The channels you choose—exclusive deals with platforms or a broader reach through multiple retailers—affect royalties. Exclusivity might offer benefits like higher royalties or better visibility, but non-exclusivity can expand your audience. Analyze what aligns best with your goals.
6- Market Trends and Competition
Research your genre’s current trends and competitors’ pricing. Stay updated on what readers are willing to pay for similar content. Understanding your niche and audience preferences helps you set realistic and competitive royalties.
By considering these six factors, you can set royalties that align with your goals while ensuring sustainability and profitability for your e-book.
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