The Brutal Truth of Author Earnings on Amazon

Imagine selling $100,000 worth of books on Amazon. Sounds amazing, right? But what if you only took home $35,000? That's exactly what happened to Sarah, a successful indie author. She sold over 10,000 copies of her novel, but after Amazon's commission, she was left with a mere 35% of the revenue.

The Amazon Math Nobody Talks About

Let's break down the math:

• $100,000 in sales (10,000 copies at $10 each)
• Amazon's commission: 30% for books priced between $2.99 and $9.99, and 65% for books outside this range
• For simplicity, let's assume Sarah's book falls into the 30% commission bracket
• Amazon's commission: $100,000 * 0.30 = $30,000
• Additional fees (delivery fees, etc.): approximately $10,000
• Total fees paid to Amazon: $30,000 + $10,000 = $40,000
• Sarah's take-home pay: $100,000 - $40,000 = $60,000

But wait, there are more hidden fees you don't see coming. For instance, if you use Amazon's advertising platform, you'll be paying an additional 20-30% of your ad spend. And let's not forget about the 15% fee for audiobook sales through ACX.

Why "Exposure" Doesn't Pay Rent

Many authors are told that being on Amazon is all about exposure. But what does that really mean? It means you're paying for the privilege of being on the platform, without any guarantee of sales. And even if you do make sales, the conversion rates are often abysmal. For example, a typical Amazon ad campaign might have a conversion rate of 0.5-1.5%. That means for every 1,000 people who see your ad, only 5-15 will actually buy your book.

The 85% Alternative

So, what's the alternative? Selling directly to readers, that's what. When you sell direct, you keep 85% of the revenue. That's right, folks. You get to keep almost all of the money you earn. And with platforms like AuthorKit, you can do just that. Look, this is literally why we built AuthorKit - to help authors keep more of their hard-earned cash.

Let's compare the numbers:

• $100,000 in sales through Amazon: $35,000 take-home pay (35%)
• $100,000 in sales through direct sales: $85,000 take-home pay (85%)

That's a difference of $50,000. Over the course of a year, that's life-changing. And it's not just about the money - it's about the compound effect. When you keep more of your earnings, you can invest in better marketing, hire professional editors, and produce higher-quality books.

The Author Tax

We call this phenomenon The Author Tax - what you pay for convenience vs ownership. Amazon provides a convenient platform for authors to reach readers, but it comes at a steep cost. You're essentially paying 65% of your earnings for the privilege of being on the platform.

But here's the thing: Amazon isn't the enemy. They're just a platform. The real enemy is the lack of awareness about the true cost of doing business on Amazon. So, the next time you're thinking about publishing your book, remember: you have a choice. You can pay The Author Tax, or you can take ownership of your earnings and keep more of your hard-earned cash.

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