The Brutal Truth of Author Earnings on Amazon

Imagine selling $100,000 worth of books on Amazon, only to take home a mere $35,000. This isn't a hypothetical scenario; it's the harsh reality many authors face. The reason? Amazon's commission structure, which can range from 30% to 65% of your book's selling price.

The Amazon Math Nobody Talks About

Let's break down the numbers. For a book priced at $10, Amazon's 65% commission would look like this:

• Selling price: $10
• Amazon's commission: $6.50 (65% of $10)
• Your royalty: $3.50 (35% of $10)

Now, imagine selling 10,000 copies of your book. You'd expect to earn $100,000, right? Wrong. Your actual earnings would be $35,000 (10,000 copies * $3.50 per copy).

But wait, it gets worse. There are hidden fees authors don't see coming, such as delivery fees, which can range from $0.15 to $2.50 per book, depending on the file size. For a 500-page book, that's an additional $2.50 per copy.

The Exposure Myth

Many authors are led to believe that being on Amazon is all about exposure. However, the data tells a different story. According to Amazon's own numbers, the average conversion rate for also-boughts and recommendations is around 1-2%. That means for every 100 people who see your book, only 1-2 will actually buy it.

The 85% Alternative

So, what if you could keep 85% of your book sales instead of 35%? This is where direct sales come in. By selling your books directly to readers, you can avoid Amazon's commission altogether.

The difference between 85% and 35% may seem like a simple 50% increase, but the compound effect is staggering. Over the course of a year, keeping 85% of your sales could mean an additional $50,000 in your pocket.

Look, this is literally why we built AuthorKit - to help authors like you keep more of your hard-earned cash.

The Author Tax

I like to call this phenomenon The Author Tax - what you pay for convenience vs ownership. When you sell on Amazon, you're essentially paying for the convenience of their platform. But when you sell directly, you're taking ownership of your sales and your readers.

So, what's the solution? It's not about abandoning Amazon altogether, but about being smart about how you use the platform. By diversifying your sales channels and building a direct relationship with your readers, you can minimize The Author Tax and keep more of your earnings.

Reframing the Narrative

Amazon isn't the enemy. But paying 65% is. It's time to take control of your author business and start building a more sustainable future.

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