Book & eBook Marketing Book Pricing & Royalty Strategies

Question 1

What royalty rate does Amazon KDP offer for eBooks priced between $2.99 and $9.99 in eligible territories?

Accepted Answer

70%

Answer

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?

Accepted Answer

Countdown Deal

Answer

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?

Accepted Answer

Making book one in a series permanently free to draw readers into the series

Answer

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?

Accepted Answer

$2.99

Answer

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?

Accepted Answer

Price skimming

Answer

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.

Book & eBook Marketing Practice Test

Book & eBook Marketing Practice Test

Book & eBook Marketing Book Pricing & Royalty Strategies