It’s too early in my day to talk cogently, so something something something I was in the Kobo Writing Life newsletter today.
I like Kobo. They are really serious about helping self-publishers succeed. I hope they have a great year.
Last summer, Kobo opened the doors to their own self-publishing program, Kobo Writing Life. It quickly caught a lot of buzz about being the Next Big Thing for indie authors. I don’t know about that just yet, but it’s definitely a major international market, and if you’re a self-publisher or small press, you want to be in it.
But like every online bookstore, it does some things its own way. And getting started on any new store is tough. I don’t know any super-secret tips to instant Kobo bestsellerdom, but I’ve picked up a few (and let me stress the “few”) tricks to understanding the site. I’ll continue to update this page as I learn more.
Linking to Your Books on Kobo
Being able to link to your books is kind of a little bit important. I mean, if you’re one of those people who likes selling books, anyway. So this is a big one: when you upload a new version of a book to Kobo, it will change that book’s web address. Oops. Suddenly all your previous links to that title are obsolete.
This is one of those “What the hell, man?” things, but fortunately, there’s a workaround. Kobo itself has written the guide on this one, explaining how to make permanent links to your books. It’s very simple. Formatting your links like they recommend is going to save you a lot of trouble should you ever want to update your books.
Edit: Author Monique Martin (who has basically picked Kobo up and folded it directly into her wallet, and by the way, you can get the first book in her series free) reminds me there’s another issue with publishing a new version of your book to Kobo: you’ll lose all your Kobo-specific reviews.
This is another reason to get your Goodreads reviews linked up (more on that below). Still, if you only have a handful of Kobo-specific reviews, don’t be afraid to update your book, especially for something major like adding a link to your new mailing list. But if the update is minor, it may not be worth losing reviews.
According to Monique, Kobo knows about this problem and is working on the issue.
Linking Your Goodreads Reviews to Your Titles
One of Kobo’s features is the ability to display your Goodreads reviews on your Kobo pages. I know, this is horrifying–Goodreads ratings are often much lower than we’ve been conditioned to expect from Amazon–but you should do it.
First off, these reviews will remain even if you have to republish a new version of your book. Second, many, many Kobo books are already linked up to GR. This means Kobo users are more used to seeing the GR scale. Third, I’m becoming more and more convinced that the average rating of your reviews is less important than how many of them you have.
I’m talkin’ social proof. Something that has proven itself to be popular is automatically interesting. If you have two cool-looking books in front of you, which one are you more likely to buy, the one with 5 reviews, or the one with 500? It turns out crowds are pretty wise. We’re programmed to follow them for a reason.
Anyway, do it or don’t do it. But linking your Goodreads reviews to Kobo is pretty dang easy. Author Eric Kent Edstrom has an awesome guide. He also has a somewhat more complicated version that may be worth trying instead, particularly if your books have normal ISBNs as well. Sometimes linking your books up is instant, but it may take up to a couple days until your GR reviews display properly.
Kobo Allows Pre-Orders
Like Apple, Kobo gives indie authors the chance to set up pre-orders on their books. This one’s kind of neat, especially if you’ve already got a few fans at Kobo who’ll buy early and help give your book extra visibility before it even goes live.
I haven’t used it yet myself, but the process seems very simple. You’ll need your cover art and your book file all ready to go, but if you’ve got that, just set up your book as normal. At the “Publish your eBook” stage (the fifth and final part of Writing Life’s publishing process), set the publication date to whenever your book’s going live. Right above the list date, there’s a button for “Allow preorders.” Want pre-orders? Just click the button. Boom.
My Book’s Live, But My Ranks Are All Crazysauce
Yeah. There are two things about Kobo ranks that are very confusing until you get the hang of them. First off, Kobo assigns ranks to every book in the system, including those with zero sales. So don’t pop the champagne when your book shows up with a rank as soon as it goes live. All that means is it’s tied with every other book that hasn’t sold a copy yet.
Second, Kobo is highly international. And they calculate separate ranks for each region your book’s in (Canada, United States, New Zealand, etc.). Meanwhile, they’ll display rank based on whatever region you’re viewing from. So if you’ve sold 10,000 copies in Canada, but only 3 in the US, and you visit the site from the US, you’re going to see a rank based on those 3 US sales.
These two factors get particularly vexing if you’re from a small, non-English-speaking region. Since there’s so little volume being sold in that region, new books can show up with some pretty sweet ranks, which has led some people to think Kobo isn’t reporting sales. They are. Alternately, you’re selling books, but your rank isn’t budging–why? Well, your rank is updating–but only in the region(s) where you’re making sales. If you’re not from that region, you just can’t see the change.
Kobo Allows Regional Pricing, Too
This feature isn’t that unique. Amazon and Apple have regional pricing, too. But it’s something you should take advantage of. Since Kobo calculates separate ranks for each region, you’ll probably wind up with most of your initial sales skewed to one or two regions. Canada, most likely. Kobo started in Canada, and while it was recently acquired by Japan-based Rakuten, Canada seems to remain its major market.
But Kobo is active all around the world. How do you get rolling in all those other global markets? Well, the biggest weapon we’ve got in that fight is price. Selling nada in the UK? Try slashing your UK prices. Could just be on one book. Unlike Amazon or B&N, Kobo lets you set your price to $0.00, so you could try that with a title, too.
I know some authors hate pricing at $0.99 or its regional equivalent. Some people even hate giving their books away. Heretics! To that I say: price however you want. It’s your book, and if you’d rather stand by your principles than sell any copies of it, price it at whatever you please.
But you may want to suspend those principles until it’s sold some. Gotten visible. Which may require a low initial price. That’s the sweet thing about regional pricing. You don’t have to discount it everywhere. And unlike Amazon, which requires a minimum price threshold ($2.99) in all territories if you want to earn 70% royalties in any of them, Kobo keeps distinct payment rates for each territory. In other words, if you want to price at $4.99 in Australia and $0.99 in New Zealand, they’ll still pay you 70% royalties on your Australian sales. That is because Kobo loves you.
Oh yeah, and if you didn’t know this, Kobo’s royalty payments are more generous than anyone but Apple. For books priced between $1.99-12.99, they pay 70%. Everything above or below that range still earns 45%. Beats the tar out of Amazon or B&N.
Hey, I Did All This Stuff and I’m Still Not Selling
I know. Kobo’s very cool, but in some ways they’re the toughest store to get rolling in. All I can tell you is to be aggressive. Try making at least one of your books free for a while (or permanently). Hunt out sites that list Kobo books. Experiment with advertising. Shake your fist at the north. I don’t know.
But don’t neglect Kobo just because it’s tough. It’s also a major market, one that can go a long way toward providing you with a living as an indie author. It may take a while to gather steam there, but I hope this stuff with hasten that process and keep things rolling smoothly. Questions? Fire away.
Very early this morning, Amazon posted the following changes to their Affiliate program, effective March 1st:
“In addition, notwithstanding the advertising fee rates described on this page or anything to the contrary contained in this Operating Agreement, if we determine you are primarily promoting free Kindle eBooks (i.e., eBooks for which the customer purchase price is $0.00), YOU WILL NOT BE ELIGIBLE TO EARN ANY ADVERTISING FEES DURING ANY MONTH IN WHICH YOU MEET THE FOLLOWING CONDITIONS:
(a) 20,000 or more free Kindle eBooks are ordered and downloaded during Sessions attributed to your Special Links; and
(b) At least 80% of all Kindle eBooks ordered and downloaded during Sessions attributed to your Special Links are free Kindle eBooks.”
Here’s my reading of this: if you’re a bargain ebook site that gets at least 20,000 free book downloads a month, and at least 20% of your total orders aren’t paid books, then you don’t earn any affiliate money that month. If you think I’m misinterpreting, please chime in.
So. Major sites like Pixel of Ink earn scads and scads of money off their affiliate sales, which include any Amazon purchases made by a customer who was driven to the site by clicking on one of POI’s free book listings. I don’t know how many freebie orders POI generates, but I’m pretty positive they’re good for well more than 20K a day.
In other words, they’re going to be way, way past the cap.
Here’s the question: what percentage of their current orders are of paid books vs. free books? If they’re past the 80% mark, how much are they going to have to change their listings–by decreasing free mentions, increasing paid mentions, or both–to not forfeit their affiliate earnings?
Turns out I can drop some very rough math on this. I think that, generally speaking, a free book listing will get about 15 times as many orders as a paid book listing. In other words, that’s a 15:1 ratio. To come in under the new requirements, sites need to hit a 4:1 ratio. That means the bargain book sites will have to post approximately four times as many paid books as free ones.
Right now, nobody’s all that close to those numbers.
POI’s closest; they already run around a 2:1 ratio of paid:free. ENT runs about 1:1. So does BookBub. FKBT runs several times more free books than paid. My figures are extremely back-of-the-envelope here, but you can see that major change is on the way. Either the major sites are going to have to offer a lot more paid books (although I doubt that tripling their paid listings would triple their paid orders), or offer a lot fewer free books. It could shake out that they list 50-80% fewer free books every day than they do now.
Now, it’s possible things aren’t as grim as that. These sites are so big that Amazon may have reached special arrangements with them to allow them to run more freebies–POI and ENT were already contacted about this general issue a few months back. Or my 15:1 ratio could be off. It’s extrapolated from ad results, but it’s not like I have direct access to these sites’ affiliate numbers. But it could be closer to status quo than I think.
That said, it’s pretty clear that things will change. The question is how much. And there are two obvious outcomes of these changes.
First, if you’re an author, it’s going to be tougher to get your free book mentioned on the major sites. Probably the medium-sized sites, too.
Second, the bargain sites may open to more for advertising of discounted titles, giving authors more venues to promote $0.99 sales and such. If demand from authors for freebie mentions is high enough, and supply is limited enough, the sites might start charging to list free books. And if the results are there, we’ll totally pay them for that, too.
This will be another blow to Select, making the program more winner-takes-all than ever. Why would they harm the program? Because they care infinitely more about the overall ebook market than they do about Select. EDIT: And it might not even be about the ebook market. This could be nothing more than an attempt to correct a problem with the affiliate program, which may feel it’s overpaying for the results its ebook affiliates are providing Amazon.
Whatever the case, it may be extremely chaotic over the next few weeks and months. As the bargain sites attempt to adjust to the new guidelines, you can guarantee they’re going to err on the side of caution, meaning very few free books will be listed each day. They might loosen up as they learn to work with the new system, but who knows how long it could take.
This is why I remain ambivalent about Select in general. Success depends heavily on these bargain book sites. If they change their rules, or Amazon changes the rules for them, it can leave authors caught on the carpet.
As they say, though, from crisis comes opportunity. If there are fewer site-launched freebies dominating the charts each day, that may leave more room for more “organic” free runs for books to claw their way up the ranks on their own (or aided by a bevy of small sites instead). Especially in the transition period, the books that do very well on free runs could do even better than ever, because there’s less competition vying for clicks.
That’s about as far as I can squint into the future. I fear that shit is about to get real. If you’ve got any questions, thoughts, or predictions, fire away.
EDIT, 2/28: Some numbers have started to emerge from affiliates who links to ebooks. The performance of free books vs. paid books varies heavily depending on how the site owner built their readership, but the order numbers have looked.. challenging. The best ratio I’ve seen was 91% free books, 9% paid. Others have been as high as 98.5% free. Michael Gallagher, owner of FKBT, estimates his links to free books get 148 times as many clicks as his links to paid books.
It sounds like virtually all of the freebie sites are going to have to make some changes: some minor, some drastic. March should be interesting.
In one sense, it isn’t news that Amazon wants the payment to authors for Select borrows to be about $2.00. The program is now over a year old, and in that time, the rate has always been pretty close to that mark. But this December, a lot of people thought things might be different. Amazon announced that they were adding a bonus payment to the Select pool, doubling their borrows budget to $1.4M. There was talk that borrows might pay $3 or even $4 apiece. I didn’t think it would get that high, but I figured it would be a big enough pot to keep borrows in the $2-2.50 range.
The December 2012 borrows rate was recently announced. The payout? $1.88.
Well. A bit skimpy. But how does that compare to the history of the program? Here’s the per-borrow payment each month since Select started.
12/11 – $1.70
1/12 – $1.60
2/12 – $2.01
3/12 – $2.18
4/12 – $2.48
5/12 – $2.26
6/12 – $2.08
7/12 – $2.04
8/12 – $2.12
9/12 – $2.29
10/12 – $2.36
11/12 – $1.90
12/12 – $1.88
Over the course of the program, Select has paid an average monthly rate of $2.07 per borrow. Its lowest payout was $1.60 in January 2012; its highest was $2.48 in April 2012. The payment rate has never been more than 20% lower than $2.00 or 25% higher than $2.00. Trend-wise, the per-borrow payment has never increased more than 3 months in a row, and it’s never decreased for more than 3 months in a row.
Based on these numbers, I think we can conclude a few things about Amazon.
- Amazon wants borrows to pay about $2 apiece
- Amazon doesn’t want to set the borrow rate at a hard $2 apiece
- Amazon is really good at modeling consumer behavior
- They’ve done better over the holidays than expected
Rad. All this raises a few immediate questions.
Why $2?
The glib economics answer is Amazon believes $2 is the rough price point at which enough authors will stay enrolled in Select to give Prime customers an enjoyable selection of books and thus incentivize them to re-up next time, too. As for how Amazon reached that $2 figure in the first place, I don’t know. The obvious answer is that $2 is about what an author would be paid for a sale of a $2.99 book at a 70% royalty, making a borrow just as good as a sale.
Why not a hard $2 monthly payment?
I think there are several reasons for this. For one thing, a $600,000 or $1,500,000 pot looks a lot more enticing to authors than $2/borrow. There’s a bit of a gambling element to it. Sure, borrows may only have been $2.04 this month, but what if they go up to, say, $2.40 next month? And what if I can get more of them than I did last month? That could really add up. *click, enrolled*
For another thing, maybe Amazon doesn’t have perfect confidence in their predictions of customer behavior. If they set borrows at $2, and next month Fire sales explode and they wind up with double the borrows they had last month, Select would cost them twice what they had budgeted. Amazon’s got riches for days, so maybe an extra $200K or $600K is no big deal, considering it’s a cost incurred by selling all those new Kindles/getting all those new Prime subscriptions, but even Amazon has budgets.
But the most important thing, I think, is that Amazon loves complex systems. They don’t want to lay down rules from above, they want to build dynamic ecosystems, because if you build them right, such systems are self-correcting–and provide you with all kinds of awesome data. For instance, if you set the borrow payment at $2, and authors slowly decide that’s insufficient, they’ll unenroll. The selection of titles in the Kindle Online Lending Library will shrink, making it less attractive to Prime members, leading to fewer subscriptions and less $$$ for Amazon.
But if you make the per-borrow payment dynamic, then you have a self-correcting element to push the system back to equilibrium. Maybe $2 isn’t worth enrolling, but as there are fewer books sharing the pot and/or fewer Prime customers borrowing them, the borrow payment creeps up. Maybe at $2.25, a few more authors decide it’s worth their while to join up. At $2.50, even more jump ship for Select. The KOLL has more titles, making it more exciting for prospective Prime customers, leading to (hopefully) a resurgence in subscriptions. And then as more authors and Prime customers join up, the per-borrow payment shrinks again, but who cares? You’ve got fresh blood in the program. To leave it, they’re going to have to a) decide it’s no longer worth it and b) take action to get out of it. Until they do, you’ve got authors’ content and customers’ money.
And in the meantime, you get to collect all this awesome data about how all these groups react to the changes in the system.
Because Amazon doesn’t know that $2 is the ideal borrow payment. Maybe authors will flood Select with titles for just $1/borrow. If so, great news for Amazon. They can offer even better service to their customers at little or no extra cost to themselves.
Why might Amazon have had better holidays than they anticipated?
I don’t know that for a fact. But look at the numbers above. To date, the only months the borrow payment rate has dipped below $2 are in November, December, and January–the leadup to Christmas, Christmas itself, and the post-Christmas boom. If they wanted borrows to be around $2, then they’ve had a few more Prime customers both holiday seasons than they predicted.
What does this mean for authors going forward?
Well, that would seem like good news. Because a lot of those new Prime members have their membership because they bought a Kindle Fire. And new Kindle Fire owners means more people around to buy ebooks.
It also means the Select program is pretty stable. There are still a lot of authors in the program and a lot of Prime members borrowing their books. From Amazon’s perspective, this is just dandy. And if everything’s working as they like, it’s less likely that they’re going to put out a lot of shiny new incentives to the Select program.
Note: there is a big difference between “less likely” and “won’t”. However well Select is doing for Amazon, the bloom is off the rose. They could decide to do something about that at any time.
But the program looks stable, and it looks like a winner. I’m having a hard time typing this, because I feel like there are good odds I’ll soon be proven hilariously wrong at any moment, but don’t count on any big changes to the program soon.
And in the meantime, expect to be paid about $2 per borrow. Amazon appears to want to keep it there–and Amazon is pretty good at getting what they want.