On Going Exclusive

by James Scott Bell
@jamesscottbell

There are three kinds of people in the world: those who can count, and those who can’t.

And there are two kinds of indie writers: those who are exclusive with Amazon, and those who choose to “go wide.”

We’ve had several discussions about going wide. See, for example, here and here. Today I thought I’d bring you some thoughts on exclusivity.

Exclusive, of course, means distributing your ebook only through Amazon’s Kindle Direct Publishing (KDP). As you set up your book in the dashboard you’re given the option of putting your ebook in KDP Select. All you have to do is check that box and you’re in. As Amazon explains: “When you choose to enroll your book in KDP Select, you’re committing to make the digital format of that book available exclusively through KDP. During the period of exclusivity, you cannot distribute your book digitally anywhere else, including on your website, blogs, etc. However, you can continue to distribute your book in physical format, or in any format other than digital.”

KDP Select is in effect for 90 days from the publishing date. You can withdraw your book from the program after that, or leave it alone and get automatically re-upped for another 90.

Your ebook is now available not only for purchase in the Kindle store, but also for Amazon’s reading subscription service Kindle Unlimited (KU). Subscribers read KU books for free, but you get paid for every page of your books that’s read by a KU subscriber. Your payment comes out of the KDP Select Global Fund, a big pot funded by KU subscriptions. The calculations are explained here.

Beyond getting paid for KU reads, your book gets an algorithmic boost in the Kindle store. The primary reason for this is that downloads of books through KU are treated as “sales” for ranking purposes. This increased visibility leads to more actual sales from non-KU readers. It’s a double win. And it’s not just in the U.S. KU books are also available in the U.K., Germany, Italy, Spain, France, Brazil, Mexico, Canada, India, Japan, and Australia.

Being in Select helps enormously with discoverability because of its promotional perks. You are given five days within each 90-day period to run a promotion where your book is free. (There’s also a price-countdown promo available.)

The idea is to get new eyeballs on your book and do some back-end marketing with it. If you have a series, for example, you can make one of the titles free and have links to the other titles in your back matter. For a new author, you can incentivize sign-ups for your email list (which is a whole subject in and of itself, beyond the scope of this post.)

The current wisdom is to use all five of your promo days at once, and couple it with a deal-alert service, like BookBub. A BB featured deal is hard to get, especially for a new author, but there are other services you can use, such as BookGorilla, ENT, and The Fussy Librarian (a list of other deal-alert sites can be found here).

Starting off in KU keeps things simple as you learn the ropes of indie publishing. If you need to fix a typo, boom, five minutes. Want to change the price? No problem. Why would you want to change the price? Because you can run your own promotions using 99¢ as your price point.

These things can be done on a “wide” basis, too. It’s just that things are more cumbersome and time consuming. A lot of plates to spin, which is fine if you like plate spinning. Exclusive authors would rather spend that time writing more books.

But the main reason to go exclusive is that it brings in more revenue. I was wide for six years, then moved to exclusive, and each year since has seen a 3-4x advantage over what I made on all the other platforms combined. There is plenty of testimonial evidence out there to the same effect. One indie writer summed it up this way:

I should perhaps add, that going exclusive to Amazon at the end of last year with the majority of my books has given me a massive increase in sales through the pages read thing with Kindle Unlimited. After a number of years as a staunch ‘go wide’ author, I’m now reluctantly very happy with my royalties, even though I miss the Apple, Kobo, and Nook readers.

A hugely successful indie publisher, Wolfpack Publishing, specializes in genre fiction, primarily Westerns. All their ebooks are in KU. In an interview in The Hotsheet (subscription required) CEO Mike Bray said, “I honestly believe KU readers consume more books than all of the other [non-Amazon] digital book platforms combined.”

So if it means more lettuce, why would an author resist going exclusive? The reasons are mainly philosophical. Because of Amazon’s dominance, some writers view it the way a small businessman viewed the steel and oil trusts of the Gilded Age. As one author of note puts it, “It twists my knickers to give Amazon that much power.”

Others are wary of being beholden to one retailer that can change its rules at any time. This is basically a risk calculation—forego added revenue now because there’s a chance Amazon will someday remove its advantages.

Or have its advantages removed by the government. There’s been recent chatter about a possible antitrust action against “unregulated Big Tech monopolies.” See, for example, this Congressional press release. However, there is considerable doubt about any such move being imminent.

Still, the sides are getting into position. Amazon VP of public policy Brian Huseman issued a statement warning of “significant negative effects” on Amazon consumers and small- and medium-sized businesses that sell on the platform.

“More than a half million American small- and medium-sized businesses make a living via Amazon’s marketplace, and without access to Amazon’s customers, it will be much harder for these third-party sellers to create awareness for their business and earn a comparable income….The Committee is moving unnecessarily fast in pushing these bills forward. We encourage Chairman Cicilline and committee members to slow down, postpone the markup, and thoroughly vet the language in the bills for unintended negative consequences.”

Even if action is taken, antitrust cases of this magnitude take years to resolve in the courts. For example, an antitrust investigation into Microsoft’s practices re: its Internet Explorer browser began in the early 1990s. Suit was filed in 1998. The DOJ won at trial, but was reversed on appeal. The case finally settled in 2001, with the DOJ abandoning its goal of breaking up the company.

It’s a safe bet, then, that the advantages and revenue of the KDP Select program are going to remain in place for a long time to come. For indie writers who do this for a living the motto is: Gather ye page reads while ye may.

There is no one right answer for every writer. Study it all out, think about your goals—both immediate and long term—and make your choice. And if conditions ever change significantly, remember we have that other indie motto to fall back on: Writer be nimble, Writer be quick, Writer get busy and change your shtick.

Comments welcome.

The New Bestseller Lists

Guest post by L.J. Sellers

 [Note from Jodie: I’m on my way home from When Words Collide, a writers’ conference in Calgary, where I presented two craft-of-writing workshops, so I didn’t have time to prepare a post for today. My good friend LJ Sellers kindly accepted to step in for me. Thanks, LJ!]

Elements of the publishing industry have never been more hotly debated! The most passionate discussion is the Amazon/Hachette dispute over distribution terms and pricing, but another issue has come up that may have a broader effect on authors. Or at least, a more personal influence. 

Amazon’s new Kindle Unlimited program was unveiled recently, and it’s already affecting the measure by which authors all live—the Kindle bestseller lists.  I’ll get to that in a moment, but first the background: Kindle Unlimited (KU) is a subscription service for ebooks. For $9.99 a month, readers can download all the digital books they want. So far, the books included in the service mostly come from the Select program of Kindle Direct Publishing (KDP) and Amazon Publishing (AP) imprints. 

[You can enroll in the KDP Select program by clicking on the box when you upload your book. When you click the Select box, you’re agreeing to make that ebook exclusive to Amazon and not sell it in ebook form anywhere else. In exchange, you get various promotional opportunities, plus you’re enrolled in KOLL (the lending library), so you get paid each time someone borrows your book. And now, with the new program, you’re also in Kindle Unlimited, for even more paid sales.]

The issue of how authors get paid for books that are read through subscription services was already under debate with the launch of other services such as Scribd and Oyster. But deep-pocketed Amazon is offering to pay authors for each download that the consumer reads more than 10% of—the same as if it were a sale or a Kindle Lending Library download. 

So the famous Amazon algorithm—that generates the Kindle top 100 lists—treats these downloads/reads the same as it does a retail sale. Now books that are being consumed through the subscription service are being bumped up in the rankings, and many are making the top of the bestseller lists. 

This is great news for authors like me, whose books are published either through Thomas & Mercer or KDP. Those lists represent visibility, and visibility leads to more sales, and more sales lead to higher rankings, which leads to more visibility. A positive cycle! 

But for authors with traditional publishers, or KDP authors whose books aren’t in the Select program, the effect may be the opposite—bumping their titles farther down the list. 

Digital Book World has decided that phenomenon isn’t fair, and so it’s excluded from its own bestseller list all titles listed in Kindle Unlimited. Which is also not fair, when you consider that the top-tier books from KDP and AP are bestsellers even without help from KU downloads. 

And now they’re being excluded from this one particular bestseller list. Many of those authors may not care much about Digital Book World. Ranking high on Amazon’s lists is the key to success. The other lists they care about are from the old guard: The New York Times and USA Today

But what if those print-media lists decide to exclude Kindle Unlimited titles too? That could be a major concern for those authors. So the big question is: Are those subscription downloads the same as a sale? Digital Book World says they’re not, because they’re not point-of-purchase sales. But Amazon and authors in the program argue that those downloads are paid for and should contribute to ranking—which is about popularity. 


What do you think? Are they sales? Should they count toward bestsellers lists? 

L.J. Sellers writes the bestselling Detective Jackson Mysteries—a two-time Readers Favorite Award winner—as well as the Agent Dallas series and provocative standalone thrillers. L.J. resides in Eugene, Oregon where many of her novels are set and is an award-winning journalist and the founder of Housing Help. When not plotting murders or doing charity work, she enjoys stand-up comedy, cycling, and social networking. She’s also been known to jump out of airplanes. LJ’s Website  Facebook  Twitter  Google+

Call Me Ishmael. Or Call Me Easy.

I was browsing through Paste Magazine, one of my favorite websites, when I happened across this article about a website named “Call Me Ishmael.” I couldn’t get the Ishmael website to work, but the idea behind it is intriguing. There is a telephone number that you can call and leave a voice mail about a book that particularly affected you, and how and why it did so. The person running the website transcribes at least one message per week and posts it to the website. That is the idea, anyway. Again, I couldn’t access the website; hopefully that is simply due to increased traffic due to the Paste article. I love the concept, however. It’s kind of a “Post Secret” or “Whisper” on a somewhat smaller scale for readers.

Everyone had great fun a couple of weeks ago discussing Kindle Unlimited, and while we aren’t done with that yet I thought maybe we’d dial things down a notch as we head into summer’s warmest month and present our own, modest, one-day-only version of Call Me Ismael without resorting to voice mail, since a lot of people don’t use it any more, anyway. What book(s) changed your life? How? And why?

I have two: LOOK HOMEWARD, ANGEL by Thomas Wolfe and ON THE ROAD by Jack Kerouac. I read LOOK HOMEWARD, ANGEL and was immediately swept up into the magic of words. I decided moments after reading the first chapter that I wanted to spend my life writing, in one form or another, and to a greater or lesser degree I have done that. ON THE ROAD gave me wanderlust. There are few things better in God’s world than getting into an automobile and driving for several hundred miles at a stretch to a destination that you love or have you yet to love. In what I fear is the initial manifestation of the onset of dementia, I have recently been haunted with the thought of jumping on board a Spyder RT (yes, the irony is not lost on me) and tooling down to New Orleans, then across I-10 to Houston and beyond. So far I have talked myself out of it. So far. If I succumb, please blame Kerouac and my lifelong friend William D. Plant III, the gent who shoved both books into my hand and who also happens to be one of this and last century’s best unpublished authors.

Enough about me and what I may or may not do and why.  To yank things back on track: what book changed your life? How? And why?

The Eternal Fire…I Mean, Kindle Unlimited

The rumors started earlier this week, but it became official on Friday morning: Amazon’s home page trumpeted something new called “Kindle Unlimited.” It’s the Kindle version of Oyster and Scribd, or the book version of Netflix and Hulu Plus.  Kindle Unlimited is simple for the readers: pay $9.99 per month, and one can select from “over 600,000 books” (more on that in a minute) and thousands of audio books (not so much about that in a minute) as many times per month as one wishes. Are you one of those readers who like to have two or more books going at once? Step right up, my friend; you can have up to ten books at once from Kindle Unlimited on your reader and for as long as you want (so long as you keep forking over that $9.99 per month, of course). Finish a book, and you return it with a click or two and pick another book of you want, or finish up what you have and then select away again.  Do you read a book a day? Two books a day? Help yourself. The first month is free, and yes, I joined. Amazon makes it easy (is that a surprise?). Click on the sign up button, log into your account, and all of a sudden every book that is part of the Kindle Unlimited plan has a red button next to it that 1) indicates that it is part of the Kindle Unlimited plan and 2) announces that it can be read for free.

I was pleased to see that every book that Hachette has ever published is included in Kindle Unlimited. Just kidding, of course; THAT woke you up, didn’t it? Actually, none of the big five traditional publishers are represented on Kindle Unlimited. All of the Kindle imprints are present, as one might expect, and Open Road Media (mysteriouspress.com, anyone?), HMH, Algonquin, and Bloomsbury are there, as are authors’ works which are exclusive to Amazon. I also found a goodly portion of T. Jefferson Parker backlist to be part of it, and, if you are so inclined, The Hunger Games series, The Lord of the Rings trilogy, Seven Habits…you get the idea. You know that business dispute between Hachette and Amazon? I am sure  that the participation of Hachette (and, down the road, the other major publishers) is an important element of it.

There is also an audiobook component to Kindle Unlimited through audible.com but at this point anecdotal reports indicate that there are only two thousand titles or so are included in Kindle Unlimited. This number will undoubtedly increase.  Further, if you borrow an eBook that has an audiobook version which is part of the program, the audiobook is included automatically. And, of course, there is also the whisper sync feature included with many books. So there is plenty for everyone.

Kindle Unlimited is not Amazon Prime. There’s no long-term commitment with Kindle Unlimited; it’s for books only; and if you are already an Amazon Prime member, Amazon apparently is not folding Kindle Unlimited into your Prime membership. The only elements both programs have in common are 1) uh, Amazon and 2) borrowing books. With regard to the latter, Prime lets you read a book per month for free and lend books you’ve purchased; Kindle Unlimited is, well, unlimited; but you can’t lend other books you’ve purchased.

There is an additional consideration, of course, for the authors among us: how are the royalties for those authors whose works are included in Kindle Unlimited get paid? I did some searching for the answer, and even made a few telephone calls. Responses ranged from “Amazon isn’t releasing that information” to “I don’t know.” One source told me that for an independent author to receive royalties the “borrower” has to read at least ten per cent (10%) of the book (and yes, as an aside, it kind of creeps me out that Amazon would have a way of knowing how much of a particular book I have, or haven’t read). Once the author has accomplished that threshold through the reader, royalties are calculated along the lines of an equation which looks something like 5(x)+3(y)-42+(-7)=zippideedoodah. To put it another way, no one who is talking is really sure at this point. Authors who are free to do so might want to seek further information before committing, which of course is a good idea before entering into any contract, agreement or commitment.

There will be more — much more — to be said about Kindle Unlimited in the coming weeks and months. For the moment, however…are you interested? Did you sign up for a free trial? Have you given it a test run? And what would you like to see? I’ve already answered all of the questions but the last. I’d like to be able to borrow…graphic novels. I think that will happen when we land a man on the sun, but I’ve been surprised, pleasantly and otherwise, before. One can always hope.