Starting July 1st, amazon will unleash brand new rules for their Kindle Unlimited program, and it will effect how authors are paid per book. Before, if someone downloaded a book on Kindle Unlimited, the author was paid solely for the sale and the customer reading 10 percent of the book.
Now, Amazon will not pay royalties like this at all. Instead, they will pay royalties based only on the amount of pages that are read individually the very first time they read it. The amount an author earns is based on the total pages read and not the total share of downloads, or borrows.
Still don’t understand? Well, here is a direct quote from what is written at KDP below:
“Beginning July 1, 2015, we’ll switch from paying Kindle Unlimited (KU) and Kindle Owners’ Lending Library (KOLL) royalties based on qualified borrows, to paying based on the number of pages read. We’re making this switch in response to great feedback we received from authors who asked us to better align payout with the length of books and how much customers read. Under the new payment method, you’ll be paid for each page individual customers read of your book, the first time they read it.
Royalty payments under the new program
As with our current approach, we’ll continue to set a KDP Select Global Fund each month. Under the new payment method, the amount an author earns will be determined by their share of total pages read instead of their share of total qualified borrows.
Here are some examples of how it would work if the fund was $10M and 100,000,000 total pages were read in the month:
The author of a 100 page book that was borrowed and read completely 100 times would earn $1,000 ($10 million multiplied by 10,000 pages for this author divided by 100,000,000 total pages).
The author of a 200 page book that was borrowed and read completely 100 times would earn $2,000 ($10 million multiplied by 20,000 pages for this author divided by 100,000,000 total pages).
The author of a 200 page book that was borrowed 100 times but only read halfway through on average would earn $1,000 ($10 million multiplied by 10,000 pages for this author divided by 100,000,000 total pages).
We will similarly change the way we pay KDP Select All-Star bonuses which will be awarded to authors and titles based on total KU and KOLL pages read.
You can enroll in KDP Select at any time by visiting your Bookshelf. If you no longer want your book(s) to be included in KDP Select you may unenroll from the program by contacting us with the ASIN of the book you would like to remove.”
The big question is, is Kindle Unlimited the place for you, or will these changes alter everything for you as an author?