New Kindle Lending Program: Good for Indie Authors?

I got a very interesting email this morning from Kindle Direct Publishing, letting me know about a new opportunity for indie authors: Kindle Select.

Basically, they have a new program that indie authors can enroll in that will allow people with Amazon Prime memberships to "borrow" their books through the Kindle Owners' Lending Library.

The kicker is that for every person who borrows the book, the author gets a share of a profit pool..

From the FAQ:

__

How is my share of the Kindle Owners' Lending Library fund calculated?


Your share of the Kindle Owners' Lending Library Fund is calculated based on a share of the total number of qualified borrows of all participating KDP titles. For example, if the monthly fund amount is $500,000 and the total qualified borrows of all participating KDP titles is 100,000 in December and if your book was borrowed 1,500 times, you will earn 1.5% (1,500/100,000 = 1.5%), or $7,500 in December.

__

While I seriously doubt most of us will be making $7500 a month from this, it's still very intriguing.

Kindle Direct Publishing even went so far as to sweeten the deal by allowing authors enrolled in this program to make their book free as a promotion for 5 days during enrollment.

Now here's the rub. Nothing is perfect, right guys? ;)

Your book must be exclusive to Amazon for 90 days to participate in this program.

This means if your book is selling in any other store (Sony, iTunes, Kobo, Diesel, Barnes and Noble, etc,) you must take it down from those sites in order to be a part of this new Lending Library.

This article has a very good summary of what the program entails:
http://www.portfolio.com/views/blogs/pressed/2011/12/08/amazon-provides-boost-for-independent-authors

Now, I'm hesitant about this because I'm selling well at the other stores. I've heard other indie authors talking this morning about pulling all of their titles from Amazon's competition, and couldn't help but ask "What happens if Amazon gets a monopoly on indie bookselling?" Will they still treat authors as well as they are now?

What happens to our 70% royalty rate once they're the only show in town?

For now, I'm going to sit back and see what happens with the folks who are putting most or all of their books into this program. There could be amazing potential for profit, but there is also a high risk when you rely on one source for all of your income.

What do you guys think?  Should indies jump on it, or hold out to see what happens next?

Get Your Head in the Game

Do you have a mind for business?

Well, if you're a writer, I hope your answer is either "yes," or "argh, I'm learning as fast as I can!"

Sometimes when we're neck-deep in story ideas, it's easy to forget there is a second, all-important skillset we need to honing:  our business savvy.  If you never reach your readers, how are you going to make it?  How can you reach them, entice them to pick up your book, and convince them to come back? 

Figuring that out is almost as important as the writing itself.

I'm constantly working on this, because being a small business owner is definitely new to me. When I first started on this journey, I had exactly zero clue, so I started reading about book marketing. I have a few books stacked up at home on the subject, but here's the kicker. They're almost entirely obsolete now because of the market shifting toward e-books!

So, I'm learning as I go.

One thing I recently picked up is that the Fall and Winter are huge for e-books (and books in general.)  People are home from summer vacation and they are giving their family and friends e-readers for back-to-school and Christmas. 

The savvy marketer at this point thinks, what can I do to make sure I'm positioned well for this great sales quarter? How can I make sure I benefit from this season?

A few things I'm doing to prepare:

• I'm looking for new cover art for Legacy of the Empress to bring it more in line with professional TOR-esque covers so it will stand out in time for Christmas
• I'm bringing Legacy of the Empress out in paperback to reach those who don't have e-readers yet.
• I'm going to be a part of a local author event at a Beaverton library in October talking to teens about writing and selling paperbacks.
• I'm writing more stuff! (The most important part.)  I hope to have two more Veronica Grim stories as well as (hopefully) a great start on the sequel to Legacy if not the whole thing, ready to go.

What are you doing in the coming months with your writing?  Even if you're not ready to be published yet, are you preparing a business plan for the next month, quarter, or year? 

It's something to think about :).

What do you think?  Do you have a mind for business?

June Sales Numbers: Knowledge is Power!

I learned something recently that baffled me.  People in other countries, or even in unions in our own country talk about their salary all the damn time.

This came as a surprise because in Corporate America, talking about your salary with other employees can be enough to get you fired.  I started to think about it, and realized the only reason it's frowned upon and forbidden is to keep people ignorant.

You won't complain about getting screwed over if you don't know in the first place, right?

Well, in the book world, it was Indie Authors shirking the taboo to talk about their sales numbers that helped me decide this was the path for me.  So, now that I have two months' worth of data, I'm going to pay it forward and share it with you guys :).

Here's how it's going so far:

April Total Sales:  19  (I had 2 short stories up for 2 weeks)
May Total Sales:  30  (I put out a short story and a novella under a pen name)
June Total Sales:  123
(Legacy went live as well as 1 short story under that name, and 2 more under my pen name)

This month I more than quadrupled last month's sales!  My jaw almost hit the floor when I passed 60 for this month, much less 120... just... wow.

Amazingly enough, the more writing I did, the more sales I had :).

So far on this journey I've made $120.37 on my e-books, $45 on freelance editing, and have spent $133.18 on 250 business cards, 7 pieces of cover art and a domain purchase.  That's $32.94 in profit.

When I make money, I've been investing it back into the business.  I am treating this like it's my small business and I'm growing it for this first year.  When I'm in the black again, I buy more cover art.  Next, I'm thinking of paying $39 to produce a paperback version of LEGACY through Amazon's POD service, CreateSpace.

So, there you go :).  If I manage to double my sales each month (versus quadrupling), I'll be at 1000 sales/month by the end of this year.

That's what I'm working toward, and I plan to put out two more short stories and AT LEAST one novella, if not a full novel by January 1st.  I will also be releasing stories under my pen name.

I hope this was helpful to some of you who are deciding which road to take with your own career.  Best of luck to you, and let me know if you have any questions I can help with, either in the comments or through email.

Here's to July!

Edit:  Almost forgot to post this excellent blog post from super successful indie author Victorine Lieske comparing sales trends.  It's very helpful for gaining some perspective on where people are in this industry.