There is a question authors have to ask themselves with every new book: How much is my book worth?
We spend countless hours dreaming and brainstorming, drafting and rewriting, editing and revising. Then, we have someone else look at it and we edit it again. But the time we finally press publish, we have likely laughed, cried, yelled at it, and drowned our frustration in chocolate.
And then we put it up for order. Should it be 99 cents? 3 dollars? Dare we charge 4 dollars or even 5?
There are so many factors in this decision, I thought I would share some of them with you.
FREE BOOKS!
First of all, we have to debunk the notion that authors should give away all of their books for free. Yes, there are readers who believe this, especially in Christian fiction or non-fiction. After all, isn’t this a ministry?
Most of us who write Christian fiction would say that God has called us to write God-honoring stories to draw people to Him as well as provide clean, wholesome entertainment. But the presence of faith in a book doesn’t negate the time and effort it took to produce. Not to mention the money invested in editing, cover design, formatting and marketing. We pay our pastors, teachers, administrators, and missionaries for their time. These books took work, time, and money, and authors (although we love what we do!) cannot usually do it for nothing.
Okay, if we have established that books have value and shouldn’t ALL be free ALL the time; (trust me, I love a good FREE promotion and the ability to get books with Christian themes into the hands of thousands of readers!) the next question is how much?
$0.99 sounds good!
There are millions of 99 cent books out there. Can I let you in on a secret? For a 99 cent book on Amazon, the author gets just 35 cents. It kind of makes me cringe, because its the kind of money we give my toddler for doing his chores. My cost to produce each book is over $500, other authors invest even more. It takes a long time to earn back that money 35 cents at a time, and then ongoing marketing continues to eat away at the profit.
It should come as no surprise that we as authors use 99 cent books (and free ones) primarily as “loss leaders.” If you aren’t familiar with the term, it is common in business and means we don’t expect to make money on that particular product. But, we hope you’ll love it enough to pay more for our other products. That’s why you often see 99 cent promotions or the first books in a series priced at this level. For those on a tight budget, FREE and 99 cent books may be all you can afford, and that’s okay! But you may miss out on books that the author never discounts – and that doesn’t mean our books aren’t worth more than a dollar. Pricing all our books at 99 cents is likely unsustainable.
So then, $3? $4? $5? More?
It isn’t unusual to see ebooks from big names priced at over $10, often nearly the same price as the paperback version. Some readers balk at this, others don’t mind. I’ve heard it quoted that for big publishing houses, only about 10% of the cost of a paperback book is the actual ink and paper. The rest is editors, cover designers, janitors, managers, and oh yeah, the author themselves.
I went to Panera the other day to do some writing, and I ordered one of my favorite drinks – an iced cold brew coffee. It’s not a complicated drink, just some coffee grounds steeped in cold water overnight. It cost me nearly $5. And I was finished with it less than an hour later. I didn’t bat an eye. Yet, when I see an author charging $6 or $7 for an ebook, I flinch. Even though I know the effort and money it took to produce, I hate paying $10 for a digital download. I’m sure I’m not the only one. But… the story is the same, right?
How much does the author get?
I want to talk about the ways authors get paid. (I speak from an independent publishing perspective… all rules may vary for larger publishers!)
For each book, we make royalties. Those royalties may be set by the publisher or the publishing service (like Amazon). Sometimes, they have weird rules. Like – ever wonder why $1.99 is kind of a dead zone for ebooks? There are very few books at that price point. That’s because Amazon has a royalty % increase if it is priced above $2.99. There is a similar decrease above $9.99 (note that these limits don’t apply to big name publishers). It leaves us limited in price points — especially for big box set collections.
Authors can also get paid through subscription services (e.g Kindle Unlimited). If you aren’t familiar with KU, a reader pays roughly $10 per month for unlimited “borrows” of any book in the Kindle Unlimited library.
If an author is in Kindle Unlimited, we get paid a based on the number of “Kindle pages” a reader actually reads. For a 300 page book, it ends up being about $2 to the author. Yay! If you read a lot of books, this can be a huge cost savings for you, and the author still gets paid.
Side note: if you are a KU Reader, you actually support an author more if you read their $0.99 sale book in KU than if you buy the book – especially a boxset! (35 cents for a purchase vs $2+ for reading in KU). And if you want ultra-mega brownie points from your favorite authors… You can buy it so you have it forever, then read it in KU! Haha!
For authors not in KU (there are many reasons an author may choose not to enroll, which I won’t go into here!), there are other things to know. Like, if you read a book through a library service like Libby or Hoopla, they pay a royalty to the author for each use! So yay for libraries!
So how much is a story worth?
There is a lot of discussion in the author world about valuing our work. It’s disheartening to realize how easy it is to believe a cup of coffee is worth more than the books we poured our heart and soul into. There is still a strong belief that “Someone charging $4.99 must be awfully proud of themselves #humility!” or “If I charge $3.99 instead of $2.99, No one will buy my books.” I don’t think that is true, but I’m sure every author on this blog has had this debate multiple times in their career.
Of course, then there are authors who get emails from readers about how they should give away all their books for free, so maybe I’m wrong!
Enough from me…I want to know what you think as a reader:
How much is too much to pay for a book by an author you know you love?
How about an author recommended by a friend?
Or one you’ve never heard of but sounds good?
Does indie/traditional publisher make a difference?
If you read in Kindle Unlimited, does the sticker price of a book impact your decision to borrow?
I’ll be giving a $5 Amazon gift card to a random commenter who comments before Sunday at 8 pm CST. I hope you’ll use it to support an author and buy a book for $4 or even the entire $5!
The winner will be announced in the Sunday Edition on July 16th.
Tara Grace Ericson lives in Missouri with her husband and two sons. She studied engineering and worked as an engineer for many years before embracing her creative side to become a full-time author. She loves cooking, crocheting, and reading books by the dozen. Her writing partner is usually her black lab - Ruby - and a good cup of coffee or tea. She loves a good “happily ever after” with an engaging love story. That’s why Tara focuses on writing clean contemporary romance, with an emphasis on Christian faith and living.
I don’t read e-books, so I am paying a lot more than 99c for a book. Totally worth it though to have a book I can enjoy time and again.
I love reading. I read both paper or hard back and e books. I have paid up to $16.99 for hard back books from favorite authors. Problem is I have way to many favorite authors. Right now since Covid has been around I am not working so I have been taking advantage of free books. I admire all the work that authors put into their books so I will pay higher prices when I can to read good books. I do appreciate the lower cost of ebooks.
Hi Tara! Thank you for your thought provoking, informative blog. When I first retired in 2012 I appreciated free ebooks or 99 cent boxed set, because I had limited funds and I could explore new authors. Lower priced books give me the opportunity to read more authors. I appreciate when authors have a lower price set for preorders. This avid reader supports authors regardless of price by writing reviews. Even though I am on numerous street teams and receive ARC copies, I will also purchase a book if it is under $3. My way of appreciating an author’s hard work. What I am willing to pay depends on the length of a book (short story, novella, or novel), is it part of a series (single author vs. multi author series) and how well I know the author. Best wishes.
This is good, and I’ll be sharing it. So much good information.
I think for me, I have to know the author or have a decent book recommendation to spend more than $3.99 for an e-book. If I know and love the author then I have no problem spending $3.99 or more on full length novels. Sometimes I think people forget the time and effort it takes to Publish a book when they aren’t holding a print copy and that is likely why they expect to pay less. Some authors do a great job of connecting with readers as they work on projects and bringing them along for the ride so to speak, and I think that allows readers to anticipate and appreciate the value of the time and effort spent on crafting a novel a little bit more and it makes that price point less of an issue.
I love having hard copies as well! I think it is easier to recognize the value when we hold something tangible in our hands for the money.
Thanks for commenting!
As someone who reads multiple books a week, I am also grateful for the affordable option of ebooks!
Definitely these are tough times for many. Authors appreciate your support!
That’s a wonderful perspective! Reviews have their own value (pure gold!!) and we appreciate them so much!
I love that you also purchase the books in some cases after receiving it for free!
Thanks for sharing, Heather!
This was really interesting! I like the .99 books, at least to first try the author. I usually don’t mind paying up to 6.99 for an ebook, but thats my limit for a book I don’t physically own. If I have to pay much more than that I usually just buy the paperback if its available.
Thanks for your thoughtful reply!
I agree, it is much harder to pay high prices for an ebook. Something about holding in your hands or shelf is easier to swallow.
I am also much more likely to take a risk on a new author if the book is discounted or in Kindle Unlimited.
I appreciate your response about bringing readers along for the journey!
99 cent books are my favorite way to try a new author as well.
I am the same way about paperbacks. If it only costs a few dollars more, I would much rather buy the hard copy!
Thank you for your response.
This is something that I have come to realize in recent years. I used to be really picky about book pricing and only looking for the freebies. Now that I realize what it means for authors I am much more willing to pay $5 for an ebook from an author I love, or full price for a paperback. I have a frugal nature but I understand that this is paying for art.
This brings up a pet peeve of mine. Has anyone noticed the price of cards? They cost more than that average ebook. I don’t understand that. I’ve had to purchase a few cards lately and it’s rankled me lol. Dollar Tree is my normal go-to card shop but not right now.
Anyway, to answer your question I will pay up to ten dollars for an ebook if I’m dying to read it. I will pay more for a print.
I really love when books are in Kindle Unlimited. As an author I actually earn more when a reader reads my books this way.
I wholeheartedly agree with everything you’ve said!! I’ve been guilty of undervaluing books as a reader, which then makes me feel terribly guilty asking for a perfectly reasonable sales price! There is a verse in the Bible about a worker being worth his wages, and it’s helped remind me that it’s good to know and value my worth—not only as an author, but definitely there too.
I read closes to 20 books a month so ebooks are a blessing . Especially when you live in a condominium.
I have a great deal of respect of authors. A lonely profession that requires a great deal of dedication , time and effort. Pricing is ticky.
Loved the insights in this article! I’ve always wondered what helps an author more. If I read their books on KU, buy the ebook (or at what price point is it better to buy the e-book vs reading it on KU), or buy the paperback? An author that I am friends with told me that buying her e-book, which was about half the price of the paperback, was actually better for her. I had no idea!
Anyway, on to your question, If it’s an author I don’t know, but I’ve seen a lot of buzz around the Internet, I’ll look for it on KU or if it’s $.99 or $1.99, I’ll take a chance and buy it. If it’s an author recommended to me by a trusted friend, I’ll spend up to $7 on an e-book. If the e-book is more than $7, I’ll usually just end up buying the paperback. For an author that I love, I have been known to buy the paperback, e-book, and if it’s on KU, read it on there. I also try to gift a lot of books. I usually buy paperbacks for gifting.
I don’t have a big budget. I used to use the local library until our second car died. Now it’s hard for me to get to the library when my husband isn’t using the car.
How much is too much to pay for a book by an author you know you love? I don’t pay for anything over $2.99 for an author I’m a huge fan of.
How about an author recommended by a friend? Doesn’t matter. My friends all have different tastes, and I may not like it just because they recommended it.
Or one you’ve never heard of but sounds good? $0.99 or in KU.
Does indie/traditional publisher make a difference? Not really. I can’t usually tell the different just from the cover, unless I already know the author is indie. Personally, I refuse to pay $9.99 or more for an ebook. I’d much rather have the paperback for that price.
If you read in Kindle Unlimited, does the sticker price of a book impact your decision to borrow? No. KU lets me take chances on authors I haven’t heard of, regardless of the price. I don’t care much about the price. I care more about tropes and the faith threads.
I really appreciate this post. When I first got my e-reader, I “specialized” in free or 99 cent books. I have to really like the author to pay over $4.99. A few times I’ve gotten hooked on a series for which the first books are cheap, but then I’ve got to pay $8 or $10 to read the last one if I don’t want to wait forever to read it on sale 😉. I like KU for trying out new authors, or books I know I’ll only read once. I also have several book series in which I got the first book free or cheap as an e-book, but the others were cheaper in paperback. My husband prefers me to fill up my Kindle rather than but more physical books and add them to our already bulging bookshelves 😉
This is such an important topic that not many authors want to talk about. :-) Thanks for sharing about it in such depth!
I am one that tends towards .99 to try if like buy the paperback. The free also are helpful in choosing what I buy in paperback. My kids don’t believe I read unless there is a paperback in hand. So when spare money paperback
I’ve found a lot of my favorite authors by getting the first book free, and then I’ll purchase the other books in a series, or another book by the same author. I’ve paid up to $10 for a boxed set of ebooks, once, and I’ve paid $10 for a single ebook because of the author. However, while I loved the boxed set, and I wish I’d never read the single book, and I won’t read that author again. I will spend up to $7 on ebooks, when I have the funds.
I have only read like one ebook in my life. I love holding the book in my hands. so, I spend alot more on books. 😂
This was a thought provoking post. As a new author I found pricing to be sticky and it occurred to me that I pay more for a coffee without blinking an eye than I do a book that took hundreds of hours to produce.
I’ve always loved books and they have great value to me, but I had to admit to myself that I was so used to .99 books that I’d began to undervalue them at some point without much thought.
Having said that if it’s a book I want I’ll pay whatever it costs as long as its not above the print copy. (I prefer paper)
If it’s a new author and I’m just checking them out I appreciate KU or the free sample e-book.
The truth is I think books should cost more than a latte or a greeting card. Each book contains part of the author’s heart and soul and countless hours of work.
I so appreciate your insights into the business side of being an author. I have experience with this from a couple of different perspectives. First, my wife is a jewelry designer and artisan. She makes beautiful pieces like wire-wrapped pendants that are absolutely gorgeous. For years, we have sold her work at local craft fairs. The same problems with pricing exist for us as well. A creative product will rarely bring a price that breaks even where time is concerned unless you have a large following (and corresponding volume of sales). We happen to live in an area where the locals are not willing to spend $40 for a set of necklace, earrings and bracelet. Were we willing to travel 50 to 100 miles, there are shows in more affluent areas where we might do well. But travel has its own cost both financial and emotional. As creatives we wind up having to make choices that are trade-offs between financial return and intangible values. I would guess that if you were willing to do book signings or readings every day for a month at a time, you would increase your sales. Would it be worth what it would cost you emotionally to be away from your family or (like us) to have to deal with all those people, lol!
The second perspective is that of the market. Several years ago, my wife and I learned a lot about business sales when we tried to start our own company (a story in and of itself). The core idea in sales is that something is worth what someone else is willing to pay for it. The wonderful example of this is Christ on the cross. If you ever wonder how much you are worth as a person, don’t listen to the people around you who may have big mouths and small hearts. Look at what the creator of the universe did. He gave the life of His only son to buy you back from the auction block of slavery to the darkness of sin. That is what you are worth. Coming back to the mundane, the willingness of people to spend is truly out of your control. It becomes a discovery process as you work in the market. Be prepared to experiment with your back list. Try the different price points and compare the results. Compare KU with the direct sales information. If you’re really adventurous, load PDFs on low-cost flash drives, print up a bunch of cover sheets and offer them for one of the higher price points at a local craft fair. I bet they sell better than hand-crafted jewelry! The hard and unpleasant truth in selling is that no one owes us a purchase. That leaves us with the process of discovering an eager market sector. It seems so contrary to the creative process we know. The story is what drives us. The big money-makers allow themselves to be driven by the market.
I tend to purchase based on limited budget. $5 and under for most of it. I will pay more for an author I know and love but usually only for something to complete a series. I don’t participate in KU for money reasons. I rarely get hard or paperback books for recreational reading. The shelves are already full to overflowing.
Thanks again for such an interesting “view from the inside”.
A great analogy to compare to hand-crafted items. And for sure, our value is in Christ! And the marketing side of a creative business is a whole other animal.
Thanks for stopping by Dalyn!
I agree, I will never understand charging more for an ebook than a paperback.
Best of luck with your writing!
There is something special about the feel and smell of a physical book that just doesn’t translate to a screen!
Thanks for your input, Trudy! I know you are an avid reader of many authors! Good to know the Free and discount books are still a reliable way to allow people to “test the waters” with an author they’ve never read.
The kids! I have been making a point to read more physical books so my kids are seeing me reading, not playing on a tablet!
Thanks for commenting!
Thanks for stopping by, Erin!
Thanks for sharing, Margaret!
It is definitely easier to disguise my book purchasing habits when they are digital, haha!
Thanks for sharing. The e-book resources for libraries are a great way to read authors as well!
Thanks for commenting and sharing your threshold with us for ebook vs paperback!
Thanks for that, Nicole. I definitely have changed in how I value handmade or artistic items as well.
How have I never thought of the greeting card analogy? Those things are crazy expensive!
Such a good insight, Jaycee!
Thank you for your kind words! Yes, price is a sensitive subject no matter how you approach it!
Thank you for this insightful blog post. It gives me a new perspective on buying ebooks and what the author gets out of it. My favorite way to read is with book in hand, but I do buy ebooks for the convenience of storage and travelling.
I’ve paid up to $4.99 for a pre-ordered ebook by an author I absolutely love. What I don’t like is paying just as much for an ebook as a paperback ($9.99 and up) because I will just grab the paperback. That way I can pass those physical copies on to my sister-in-law who happens to be an avid reader like myself.
I like the .99 or free ebooks if they are written by an author I’m not familiar with, that way I get an idea of if I will like their writing. If I do, then I tend to want the other books they’ve written! :-)
I borrow a lot of ebooks from the Overdrive digital library to read on my Kindle; I also had signed up for a 6 month subscription of KU which goes to the end of August. I use it SO much that I will be extending that to a yearly one….I’m enjoying all the new-to-me authors I’ve discovered through borrowing their books. I’m glad to know that authors do benefit financially from KU…I wasn’t sure how that worked. Talking about that…I have the “Betwixt Two Hearts” boxed set I’m currently reading on KU. I LOVE this service!!
Lastly, I borrow physical books from my library. I’m glad to know authors benefit from that as well :-)
Thanks for sharing this very insightful post today. Now I know different ways of supporting authors financially other than just purchasing physical copies of books!
Personally, I cannot believe people actually think authors should just give books away for free. Every time I hear that my mind is blown. 🤯
I do understand being on a budget. I have a monthly limit I try to stay within. But I’ve never really understood people who complain about money for books when libraries exist. All you have to do is request a library to buy a book, whether eBook or paperback. I’ve never been told “no” by a library.
In a perfect world, you should all change $10 per book, but I get why you don’t. You want to be sellable. I just also know from all my work with authors how much work you put into this. Maybe split the difference and just charge $5.00? I don’t know. This is a tough topic! 🙂
I think an author should put whatever price they want on their books, a lot of work and research and a lot of hours go into the making of a book . I do not mind paying up to $20 for a lot of the books I have read, and books last you a lifetime especially if the book really touched your heart.
It depends on how long the book is, how experienced the author is, the quality of the writing, etc…
I came across many of my now favourite authors through a 99c or free teaser, ie first in a series. If I really liked it I would pay up to AU$10.00 for a sequel. Usually thankfully I could get it under $5.00. Some pricier authors I have regretfully begun to avoid, especially ones where you have to read a whole series for the story to conclude. I do value all the hard work, research, time and effort, so I try to support my many fave authors. I would never dream of suggesting that their books should be free. Come on! You authors need to eat, too!! Be blessed!
Firstly ever wonder why it’s .99 cents? I am an Aussie and here things are rounded up or down to the closest 5 cent. I know paying with credit we pay .99 but it always seems strange when if you buy something of the shelf for .99cents its going actually cost $1. I see the same when looking at ebooks. but that’s another story.
I will get a free book (if they happen to be free in Australia cos often when its free in America its still normal price here). I have bought a few that came out as .99cents.
It would depend on the book, author etc how much I pay. If its a novella and under 100 pages I am not going to pay $5 but would pay up to $2. if its a box set then I would pay the $5. if its a novel I am likely to pay more. I pay more for devotional books.
On recommendations it can depend I am more likely to buy on a readers recommendation than an author cos often an author is plugging a friends book.
Hi, being that I live in New Zealand I have to factor in the exchange rate as I will pay 2-3 times more in my currency. Usually if it’s $4 or under I will purchase it. If it’s between $4-$8 it goes into my wishlist then I will buy a selection of them with a voucher I receive for Christmas. If its over $9 it’s a definite no as I can buy a paperback for the same price and I’d rather have a paperback copy.
A bit of science involved in my purchasing lol.
I think it’s great you have written this post. So many readers know nothing of the “business end” of writing. I think most readers will happily pay what they are able to for a book from a writer they have read before because of the trust built from enjoying the previous books. Without that trust and having purchased some less than great books I am hesitant to purchase books from new authors, so prefer to read a free prequel or book 1 in a series first.
As an aside I think it is sad that society as a whole values writing so little and dare I say it may be perceived as a “female” occupation, like teaching, nursing etc where value is not reflected in the price of the product/salary. Even worse when, I am ashamed to say, some readers expect to be given books free as an entitlement. No, this isn’t so and bullying authors for free books and piracy of authors books isn’t okay either. By sharing posts like this you educate readers who can then make informed choices about how to support authors more effectively. No one would sell their product or child for free or 99c so why is an author expected to.
Also I have read brilliant free books and dreadful full price books. I think how much a person pays for a book is not necessarily an indication of the book’s value.
Hi! Excellent topic! Since most of us haven’t a CLUE about any of this background info. such as real costs – and sometimes I have wondered ow prices are determined.
I just read e books these days. I love getting/reading library e books of authors I personally don’t know well yet, or who sell “expensive” books – $6 & up. I have actually requested my library purchase occasional e books (they say on their website we can request & they will decide yay or nay). On all but 1 occasion, they purchased a copy, let me know, & I immediately checked it out. It works great for series – when I begin with book #1 they are likely to get more of that author’s series if bk #1 was rented by others besides me.
I also love “freebies,” especially of authors I haven’t read yet. It gives me an idea of how they write before making any financial commitment. .99 offers are nearly as good for that. I absolutely Love an occasional Free/.99/1.99 from my fave authors since I probably am buying a lot of their books & so they are like “happy surprises.”
I don’t do KU because I prefer my own copies & I reread “favorites” frequently.
I will pay up to 3.99 from fave authors without a qualm – exactly as you said a “Caribou/Starbucks” coffee costs the same & lasts 45min Max (I personally DON’T buy those coffees, I’d rather put that same $$ toward books – but OTHER ppl do, without a 2nd thought).
I will pay 4.99 -5.99 without too much angst for a fave author’s book if it is part of a series I am currently loving, or I love that author’s work so much they are “nearly” an “Autobuy” for me (I don’t autobuy anyone, but my favorite authors’ books are preordered if their blurb sounds like I can expect no unpleasant surprises forthcoming – like being too angsty or too depressing . . )
I have very reluctantly pd up to 9.99 for a favorite (action/adventure) author who is a “Best Seller” and very rarely ever drops his prices. 4.99 is considered “cheap” for him. He writes several quite original series that I enjoy a lot, so he is one of my few exceptions regarding price. His books are 12.99+ when they first come out – which I won’t pay. I get & read his “new” releases through the library first, then when the price drops down to 9.99-7.99 or 6.99 I will break down & buy it eventually (the older they are, the lower the price, to a point). I have reread his books 3 and 4 times each & they run 400-500 pgs. So, I say “yikes!” and eventually hit “buy.”
I’m not sure it really matters regarding ebook actual costs, but I also look at the overall length of the book when considering the price. I am willing to pay more $$ for a longer read (25+ chapters), even though in most cases I actually prefer the shorter read (15-23 chapters). Ironically, If I buy a book with 300+ pages (25+ chapters), it had better keep my interest or I won’t be purchasing a book of that length from that author again – my time is too valuable to me. ;D And if it didn’t keep my interest, the $$ was poorly used.
Indy vs traditional publisher doesn’t matter to me. I simply want the story/characters to connect with me. If they do, I tend to rebuy future books – sometimes clueless unless the author bio in the back mentions self-publishing or not.
I don’t do e-books I only do print books Thank you for sharing this post!