Have you read your KDP royalty spreadsheet carefully? If you have, you may have noticed a transaction type called “KOLL,” — “Kindle Owners’ Lending Library.”
The wonderful thing about KOLL is the distorted reward to effort ratio. Say your ebook is priced at $0.99. You get a lousy $0.33 when you sell a copy. But when an Amazon Prime Member borrows a copy from you, Amazon rewards you through the KDP Select program a whopping $2.42! (Based on Sept. rate.) $2.42 translates into a sale of more than 7 copies of your $0.99.
And statistically, for most authors, your KOLL counts beat the combined sales of your book through B&N, Smashwords and all other minor channels.
So why not? Particularly when your book is priced at $0.99 or below $3.45 (that’s when a sale can break even with a borrow based on a 70% royalty rate.)
Personally, I wish there are more KOLL’s on my lower priced books than sales. If you ever come across with a book page on Amazon that screams “This book is free for Prime Members,” you now know why the author is doing that. KOLL is pronounced “Ka Ching!”
Starting this week, KDP also starts the “Countdown” promotion program which allows an author to lower a book’s price to a specified period of time for up to six days. This is offered as an alternative to the regular, know-to-everyone free promotion.
Say you have a book priced at $2.99 and you want to promote it by discounting it to a price of $0.99, Amazon will sell that book at $0.99 but still keep the 70% royalty rate you have elected for the price of $2.99. As we all know, if you price a book outright at $0.99, you are only eligible for a 30% royalty.
It looks like Amazon is putting money where its mouth it.