Imagine this…You work hard to create a book for the Kindle marketplace. Maybe it’s even a book that’s selling well in other formats, such as a hard copy book or even a PDF ebook that you sell directly on your website. But then you load it to Kindle, set the price…
And nothing happens. You don’t get the flood of sales you expected. You don’t even get a trickle. And you might even have the disappointment of being unable to make even one sale!
Now, if you know your content is solid – if you know this is the type of book that’s already selling well elsewhere – then don’t scrap your book just yet. All you may need to do is tweak your pricing strategy a bit in order to kick start your sales. Let me explain…
If you’ve looked at the Kindle pricing requirements (some of which are listed here), you’ll notice that you actually get to choose between a 35% royalty rate and a 70% royalty rate.
If you choose the 30% rate, then your book must be priced between $0.99 and $200 (provided your book meets the other requirements, such as file size). If you choose the 70% royalty option, then your book must be priced between $2.99 and $9.99.
Since a lot of Kindle authors are looking to sell a book for less than $10, many of them choose the 70% option. And then in order to get the highest possible profit per sale, they set the book price at $9.99.
That might work for authors who have household names, like Stephen King or John Grisham. But if you’re just breaking into a market, this pricing strategy likely will produce a disappointing trickle of sales for you.
You see, people are willing to spend $10 on a hard copy book, simply because they realize there are printing costs involved. Indeed, most hard copy books cost at least $9.99, so the market is used to paying that much.
But take a look at the Kindle marketplace and you’ll quickly discover that there are a lot of books going for cheap – such as 99 cents. Some are even free. And the Kindle marketplace readers sort of expect to get deals like this.
Indeed, if you’re a new author, a buyer may not be willing to “bet” $10 on you. But he will “bet” 99 cents, because he figures he can get at least one dollar’s worth of value out of your book.
Now you can see where this is all leading. Here’s a pricing strategy I’d like you to consider:
Step 1: Set the Price to 99 Cents. This is temporary. And no, this won’t make you rich. But this is a strategic move.
Step 2: Market Your Book Like Crazy. Now advertise your 99 cent book everywhere and anywhere that your target market congregates. You want to get a flood of sales, good reviews and buzz.
Step 3: Adjust the Price to $2.99. Once your 99 cent book is selling well, consistently, then raise the price to $2.99 (and take advantage of the 70% royalty rate). Readers will happily pay this amount, because their friends and your book reviews say it’s well worth the price.
Step 4: Put Out Additional Books at $2.99. The last step is to cash in on the momentum by publishing other books in the same niche. Now that your readers know you, they’ll happily pay $2.99 – and even more! – for all other books you load to the Kindle marketplace.
If you want to make money in the Kindle marketplace, then look at the long-term picture. Price your first book low, establish a great reputation and then raise the price to enjoy the 70% royalties.
Don’t forget to publish other books in the niche to further cash-in on your great reputation!