What is the Difference Between 35% and 70% Royalty on KDP?

Introduction

Self-publishing has become increasingly popular in recent years, thanks to platforms like Kindle Direct Publishing (KDP) that allow authors to publish and distribute their own books. One of the key decisions authors have to make when publishing through KDP is choosing between the 35% and 70% royalty options. In this article, we will explore the differences between these two royalty options and help you make an informed decision.

Understanding Royalties

Royalties are the payments authors receive for each sale of their book. These payments are usually a percentage of the book’s list price. KDP offers two royalty options to authors, namely the 35% and 70% royalty options. Let’s dive deeper into each of these options and understand their differences.

The 35% Royalty Option

If you choose the 35% royalty option, you will receive 35% of your book’s list price as royalty for each sale. This option is available for books priced at $2.99 or lower, as well as books enrolled in KDP Select, Kindle Unlimited, and Kindle Owners’ Lending Library. While the 35% royalty option may seem lower compared to the 70% option, there are still benefits to consider.

Firstly, the 35% royalty option allows your book to be available for customers in all Kindle marketplaces, including countries where the 70% option is not available. This can expand your potential reader base and increase your overall sales.

Secondly, the 35% royalty option does not require you to meet any specific pricing or delivery cost conditions. This can be advantageous if you want to price your book lower or offer promotions and discounts.

The 70% Royalty Option

Alternatively, choosing the 70% royalty option means you will receive 70% of your book’s list price as royalty for each sale. However, this option comes with certain eligibility criteria and conditions that need to be met.

Firstly, your book must be priced between $2.99 and $9.99 to qualify for the 70% royalty option. If your book’s price falls outside this range, you will have to choose the 35% royalty option.

Secondly, to be eligible for the 70% royalty option, your book must meet specific delivery cost requirements. Books with high delivery costs, such as those with large images or embedded audio/video, may not be eligible for the 70% option. Make sure to check KDP’s guidelines for the exact requirements.

Lastly, the 70% royalty option is available only in select Kindle marketplaces, including the United States, Canada, United Kingdom, Germany, France, Spain, Italy, Japan, Brazil, India, Mexico, and Australia. If your target readership is primarily in these countries, the 70% option might be more suitable for you.

Which Option Should You Choose?

Deciding between the 35% and 70% royalty options depends on various factors specific to your book and goals as an author. Here are a few key points to consider:

1. Pricing Strategy: If you plan to price your book below $2.99 or offer frequent discounts, the 35% royalty option might be a better choice.

2. Market Reach: If your book targets readers in countries where the 70% option is not available, the 35% option allows you to reach a wider audience.

3. Eligibility Criteria: Ensure your book meets the pricing and delivery cost requirements for the 70% option before choosing it.

4. Potential Earnings: Calculate potential earnings based on the list price and royalty percentage to determine which option offers better financial returns for your book.

By carefully considering these factors, you can make an informed decision that aligns with your publishing goals.

Conclusion

Choosing between the 35% and 70% royalty options on KDP is an important decision that can impact your book’s reach and earnings. The 35% option offers wider market availability and flexibility in pricing, while the 70% option provides higher royalties but comes with specific eligibility criteria. Consider your book’s pricing strategy, target audience, and potential earnings to decide which option best suits your needs. Remember to regularly assess your book’s performance and adjust your royalty option if necessary to optimize your publishing journey.

Frequently Asked Questions (FAQs)

1. Can I switch between the 35% and 70% royalty options on KDP?

Yes, you can switch between the royalty options on KDP. However, there are specific rules and limitations to consider. Refer to KDP’s guidelines for detailed instructions on switching royalty options.

2. Do I need to enroll my book in KDP Select to choose the 35% royalty option?

No, enrollment in KDP Select is not a requirement for choosing the 35% royalty option. Your book can be available on other platforms while still using the 35% option on KDP.

3. Can I change the list price of my book after choosing a royalty option?

Yes, you can change the list price of your book at any time. However, keep in mind that changing the price may affect your royalty percentage eligibility or distribution options.

4. How often are royalties paid to authors on KDP?

Royalties earned on KDP are paid out approximately 60 days after the end of the month the sales occur. For example, royalties earned in January will be paid out around the end of March.

5. Can I see a breakdown of sales and royalties on KDP?

Yes, KDP provides authors with detailed sales reports that include information on units sold, royalties earned, and other relevant data. These reports can help you track your book’s performance and make informed decisions.