Book & eBook Marketing Book Pricing & Royalty Strategies 1 — Questions and Answers
Question 1: What royalty rate does Amazon KDP offer for eBooks priced between $2.99 and $9.99 in eligible territories?
- 35%
- 50%
- 70% (Correct answer)
- 85%
Correct 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.
Question 2: Which pricing promotion temporarily reduces a book's price while displaying the original price to create urgency?
- Permafree promotion
- Free Book Promotion
- Countdown Deal (Correct answer)
- Price Anchoring Campaign
Correct answer: Countdown Deal
A Countdown Deal shows the original price alongside the reduced price and a countdown timer, creating urgency while boosting sales rank.
Question 3: What is the 'permafree' strategy in book series marketing?
- Permanently pricing all books at $0.99
- Making book one in a series permanently free to draw readers into the series (Correct answer)
- Offering free books exclusively to newsletter subscribers
- Running a free promotion every month on rotating titles
Correct 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.
Question 4: What is the minimum price required for an eBook to qualify for the 70% royalty rate on Amazon KDP in the US?
- $0.99
- $1.99
- $2.99 (Correct answer)
- $4.99
Correct 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%.
Question 5: Which pricing strategy involves launching a book at a high price to capture early adopters, then gradually lowering the price over time?
- Penetration pricing
- Price skimming (Correct answer)
- Dynamic pricing
- Loss leader pricing
Correct 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.
Question 6: How are print-on-demand (POD) author royalties typically calculated for self-published paperbacks?
- A flat fee per copy sold regardless of price
- List price minus printing cost, multiplied by a royalty percentage (Correct answer)
- A fixed 40% of list price regardless of printing cost
- The author receives 100% of revenue after a platform subscription fee
Correct 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.
Question 7: What does 'going wide' mean in the context of self-published eBook distribution?
- Setting different prices for different geographic regions
- Distributing a book across multiple retail platforms instead of being exclusive to one (Correct answer)
- Offering both wide-format and standard print editions simultaneously
- Expanding from eBook to audiobook and print formats
Correct 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.
Book & eBook Marketing Book Pricing & Royalty Strategies 1
What royalty rate does Amazon KDP offer for eBooks priced between $2.99 and $9.99 in eligible territories?