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Is KDP Select worth it?

By Blog

KDP Select

(UPDATED) KDP Select is a promotional tool within Amazon’s Kindle Direct Publishing program. It’s optional, but for those who do opt-in to KDP Select, it offers several benefits to self-published authors.

The biggest: the ability to create “free” promotions for self-published books (in my experience, 5 “free” days per quarter), which leads to higher ranking within Amazon’s categories, which in turn results in more prominence across Amazon.com and (theoretically) more sales. There are some other benefits, including higher royalty rates in secondary markets, small payments for “borrows” on the Kindle, and the Amazon Countdown program.

But there’s a catch: KDP Select requires participating authors to promise not to distribute their work on other platforms, such as Apple’s iBookstore or Google Play.

While many authors will say, “So what? I hardly sell any ebooks for the iBookstore/Nook/Google Play/etc.,” giving in to KDP Select supports Amazon’s monopolistic ambitions by removing content from competing platforms. In this post, I’ll talk about KDP Select and why I believe it is ultimately bad for authors.

If you sign up for KDP to self-publish your books, it’s easy to be tricked into signing up for KDP Select, owing to prominent, cleverly worded sign-up forms that litter the KDP interface. But remember that it’s optional. If you join KDP, you don’t need to sign up for KDP Select. Indeed, I urge you not to sign up, for the following reasons:

  1. Sales from KDP Select promotions may be limited. While some authors have great results from KDP Select, others don’t see much in terms of increased sales or rankings. I experimented quite a bit with Select in 2013 and experienced paltry sales and reimbursements. The rankings boost was negligible. I stopped using KDP Select in mid–2013, and haven’t looked back (sales have actually been stronger than ever across multiple platforms in the past few months).
  2. KDP Select reduces the number of readers you can reach with your books. I want to make my titles available to as wide an audience as possible, and KDP Select runs counter to that. It actually aims to establish a monopoly over reader eyeballs and self-publishing authors. It’s not only a poor way to treat readers who want to buy from other platforms and use other devices, but also limits our options down the road when competing platforms wither and fail.

On this last point, ask yourself what incentives there are for Amazon to improve the KDP UI, payouts, and policies for self-published authors if there is no credible competition. Nook is already failing (YOY sales are down 50% for me), Apple is so slow to implement change, and Google has only recently begun to improve Google Play for books.

Locking content out of these platforms via KDP Select or any other similar scheme will hasten their decline or stifle their growth, and ultimately hurt us in the long run. Competition leads to better interfaces for readers and authors, higher revenue-shares, and policies that deliver value for readers and writers alike. If Amazon is the only player in town, they don’t need to pay attention to anyone’s needs, and indeed can exploit the situation for the benefit of their owners and shareholders (which we’ve seen in the publishing industry in the past; see Bowker’s 12,500% ISBN markup for new authors.)

Bottom line: KDP Select is great for Amazon’s long-term strategic goals of dominating the publishing industry. It may even help some authors juice sales of certain titles. But ultimately it will erode the viability of other platforms, which is not good for us or readers.

UPDATE: In July 2014, Amazon launched its Kindle Unlimited subscription program. Most KDP Select titles were apparently automatically enrolled. I have evaluated the subscription program’s payouts for self-published authors, and have concluded that it treats self-published authors unfairly and is likely to cannibalize full-priced digital downloads. See Amazon’s Kindle Unlimited subscription plan screws self-published authors for details.

Bowker ripoff: A 12,500% ISBN markup for new authors

By Blog, Industry

If you’re an American author or publisher, and you want to publish a print edition of your book, you’ll eventually have to get an ISBN (International Standard Book Number) assigned to the title. ISBN records contain author, publisher, size, format, topic-related information, pricing, and other data needed by retailers, libraries, and book distribution systems. Some authors leave it up to their publishers or distributors such as CreateSpace and Smashwords. But others opt for the DIY route, which gives them more control over the ISBN data as well as a slight marketing edge (a self-purchased ISBN will reflect the name of the author’s publishing company or imprint). Purchasing an ISBN involves going through Bowker, an old-school publishing services company that is the sole issuer of ISBNs in the United States. Bowker was founded in the 1870s, is listed as an affiliate of ProQuest, and offers a myriad of services targeting the publishing industry. Sadly, and perhaps not surprisingly, Bowker has leveraged its monopoly power to rip off independent authors and publishers, using mercenary pricing for ISBNs and other services. The Bowker ripoff is a racket that targets new authors who are trying to get their first books in print.

How bad is the Bowker ripoff? If you’re a publisher needing lots of ISBNs, the price is $1 per ISBN — but you need to order 1,000. If, on the other hand, you only have one book and plan on releasing only one version (such as a single print-on-demand title) Bowker demands $125 — a 12,500% markup. The screenshot below from the Bowker website (I am citing Fair Use to illustrate) shows Bowker’s current pricing plans:

Bowker ripoff report

Actually, the markup is a lot more than 12,500%, if you consider the cost of the service. After all, it costs practically nothing when an author uses Bowker’s Web-based forms to create and store a new ISBN record. The cost structure is so inexpensive that Canada even gives away ISBNs to Canadian authors for free.

How much is Bowker making off ISBN sales to new and independent authors? The company did not respond to my March 5 email about ISBN pricing. Bowker LLC is not a public company, so there is no public annual report. However, Bowker made this claim last year:

Small presses, a category that is defined as publishers who have produced 10 or fewer books, accounted for 34,107 self-published titles — 21,256 print and 12,851 e-books — in 2011.

The number of self-published authors/small press titles probably grew in 2012, in line with growing tablet/e-reader demand, and the expansion of Amazon’s Kindle Direct Publishing program for independent authors. While not every author purchased ISBNs at $125 a pop (Bowker’s pricing scale includes more “cost effective” plans for self publishers, including 10 ISBNs for $250), Bowker nevertheless enjoyed multi-million dollar profits on the backs of new and independent authors and small publishers.

Other Bowker ripoff services

Hold on. Surely Bowker offers additional services to new authors that make it worth their while to pay $125 for a 13-digit number. Right?

Not that I can see. In fact, once an author has bought an ISBN, Bowker layers on even more mercenary upsells, like $25 barcodes and the “View Inside” widget ($120 for the first year, $60/year thereafter). Bowker claims this widget, which can be embedded on blogs or author websites, lets authors go “viral” through sharing on social networks and connecting with affiliate programs, such as Amazon Associates. Never mind that there are hundreds of free social media widgets available, and Amazon Associates has a fine selection of free widgets that authors can embed on their blogs and websites.

The Bowker ripoff aside, I could complain about other aspects of Bowker’s ISBN services, including the terrible user interface for assigning ISBNs and the bizarre request that authors upload PDFs of their books to Bowker so they can resell keyword data to their corporate customers (naturally, authors don’t get a cut). But I’ll have to leave that rant for another day.

Bottom line: Bowker is (in my humble opinion) an old-school publishing services monopoly that rips off new and naïve authors with massively overpriced digital services. I would love to see the company investigated on antitrust or unfair pricing grounds, but until that happens I can offer only a few pieces of advice to new authors:

  1. For your first print book, consider using free ISBNs offered by CreateSpace or Smashwords. It’s not ideal, but if sales take off you can always reissue the book using an ISBN that you purchase yourself or one that your publishing company buys.
  2. Self-published e-books do not require ISBNs! Amazon, iTunes, Pubit, Kobo, as well as digital content seller platforms like e-junkie and Gumroad, do not require authors to use ISBNs.

I unfortunately learned the last lesson the hard way, after using up a half-dozen overpriced ISBNs for early ebook versions of Dropbox In 30 Minutes and Google Drive & Docs In 30 Minutes. But for the latest In 30 Minutes title, Derek Slater’s Online Content Marketing In 30 Minutes, I only assigned an ISBN to the paperback edition. The Kindle, iPad, Nook, and PDF versions do not have ISBNs. As far as I can tell, ISBN-less ebooks are treated the same by Amazon and the other sales channels.

UPDATE: As of December 2015, the Bowker ripoff has gotten even worse has jacked up the price of the package specifically targeting indie authors by nearly 20%. The price of the ten ISBN package is now $295, compared to $250 in 2013.

The “Spotify for books” model: Great for readers, terrible for authors and publishers

By Blog, Industry

I am a fan of Spotify, the streaming music service that offers millions of tracks for free over the Internet. As a listener, I love the ability to find old favorites or discover new artists. Having to put up with occasional ads is not much different than listening to radio. If I had more disposable income, I would pay the $5 monthly fee for Spotify Premium — which does away with the ads and lets you download music to portable devices, like iPods and mobile phones. Would I be interested in a Spotify for books? There are such services popping up, like Bookboard for kids books and 24symbols in the U.K. for adult readers. Amazon also offers free downloads for some ebooks.

As a reader, free books are very appealing. I already use the library to borrow books, and the idea of getting free ebooks on my iPad or Kindle is attractive.

But as an author and publisher (The In 30 Minutes catalogue includes Online Content Marketing In 30 Minutes, Dropbox In 30 Minutes, Excel Basics In 30 Minutes and a Google Docs for Dummies alternative) I’m very concerned about any model that depends on free giveaways that result in little or no returns for the writers and publishers.

Spotify for books and Amazon KDP

For instance, the “free days” on Amazon’s KDP Select (which are the source of the free downloads on Amazon.com) have turned into a joke for me and other authors. KDP Select requires indie authors and publishers to only distribute through Amazon (no iTunes or Nook!) and in return gives them five days every 90 days in which they can price their book for free. The free days are supposed to attract lots of downloads from Amazon readers, while delivering a nominal price to participating authors. However, the last time I looked, my single KDP Select title delivered an average of 1 cent per download from the KDP Select fund. That’s comparable with the money musicians get every time someone plays one of their tracks on Spotify, according to various sources.

I withdrew my single title from KDP Select, and have no plans to use the KDP Select service again — unless Amazon can figure out a plan that brings more than a few pennies each time readers download books on the free download days. The same goes for other services that try to ape the Spotify for books model, or depend on loads of free giveaways. Unless there’s something tangible in it for authors, I’ll pass.