Book Pricing & Royalty Strategies Flashcards
7 cards from real Book & eBook Marketing practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Book Pricing & Royalty Strategies flashcards as text
What royalty rate does Amazon KDP offer for eBooks priced between $2.99 and $9.99 in eligible territories?
Answer: 70%
Amazon KDP offers a 70% royalty rate for eBooks priced between $2.99 and $9.99, making this the preferred pricing sweet spot for most authors.
Which pricing promotion temporarily reduces a book's price while displaying the original price to create urgency?
Answer: Countdown Deal
A Countdown Deal shows the original price alongside the reduced price and a countdown timer, creating urgency while boosting sales rank.
What is the 'permafree' strategy in book series marketing?
Answer: Making book one in a series permanently free to draw readers into the series
The permafree strategy sets book one of a series permanently at $0 to attract new readers who then purchase the remaining paid books in the series.
What is the minimum price required for an eBook to qualify for the 70% royalty rate on Amazon KDP in the US?
Answer: $2.99
Amazon KDP requires a minimum list price of $2.99 for eBooks to qualify for the 70% royalty tier; books below this threshold earn only 35%.
Which pricing strategy involves launching a book at a high price to capture early adopters, then gradually lowering the price over time?
Answer: Price skimming
Price skimming starts high to maximize revenue from early buyers willing to pay a premium, then reduces price over time to attract more price-sensitive readers.
How are print-on-demand (POD) author royalties typically calculated for self-published paperbacks?
Answer: List price minus printing cost, multiplied by a royalty percentage
POD royalties are calculated by subtracting the printing cost from the list price, then applying a royalty percentage (often 60%) to the remainder.
What does 'going wide' mean in the context of self-published eBook distribution?
Answer: Distributing a book across multiple retail platforms instead of being exclusive to one
Going wide means distributing your eBook on multiple platforms such as Amazon, Kobo, Apple Books, and Barnes & Noble rather than staying exclusive to one retailer.
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