If their book is priced below $2.99, KDP and KDP Chosen writers can receive a 35 percent royalty on sales both in the US and abroad, and a 70 percent royalty on books priced over $2.99 in the US and other select countries. Authors may receive a 70% royalty on sales in Brazil, Japan, Mexico, and India only through KDP Select. In addition, authors will be paid within 30 days of meeting certain sales thresholds.
Royalties are calculated based on an author's share of revenue from sales of their book in the KPdS program. For example, if an author's book sells for $10 on Amazon and they get a royalty rate of 10 percent, they would receive $100.
The more people that buy your book, the higher its sales threshold. So, the more expensive your book is, the better chance you have of making money. Also, different programs offer different royalty rates. For example, an author who signs up with Amazon's KDP Full Access program can expect to receive 50 percent royalties on all sales.
In conclusion, authors can earn decent money by writing ebooks if they meet the sales threshold. The exact amount depends on several factors such as price range of the book, access level to KPdS programs etc. However, it is not very likely to make a full-time income from ebook publishing.
Whether or whether they participate in KDP Select, writers who self-publish on Amazon using KDP get a 70% royalty on books priced between $2.99 and $9.99, and a 35% royalty on books priced more or lower than that. That's compared to an average of 15-20% for traditional publishers.
Amazon doesn't release sales figures for individual authors, but according to statistics from the Book Author's Guild, only about 1% of books published by members of that organization earn more than $150,000 per year. This means that if you were to write one book every year that made it onto bestseller lists, you would already be rich before you turned 30.
It's also worth mentioning that although Amazon does offer an advance against future royalties, this amount is very small relative to what you could make if you sold books at retail prices. For example, an author with a net worth of $10,000 who made $150,000 last year would have had their net worth increase by nearly 50%. An author with a net worth of $1 million who made $150,000 would have had their net worth increase by almost 200%.
In conclusion, KDP Select pays better than most traditional publishing deals, but only if you're able to sell many books at low prices.
On paperbacks sold on Amazon marketplaces where KDP allows paperback distribution, KDP gives a set royalty rate of 60%. Your royalties will be 60% of your list price. We next deduct printing expenses, which vary depending on page quantity, ink type, and the Amazon marketplace from whence your book was purchased. Then we divide the remaining amount by the number of books sold to calculate your monthly royalty.
In practice, however, few authors ever see that 60% of their list price. As an author yourself, you know how much room there is between $9.99 and $14.99. Even at $15, most books only bring in around $1,200 per year.
For best results with KDP, keep prices as high as possible without being unrealistic. Don't charge more than $17.99; even if you can get away with charging more, people will think less of you. And never, ever sell for below cost.
After accounting for printing costs, the remaining amount from each sale goes into an account that is allocated among the other authors whose books were also sold in that transaction. So if 10 books are sold in one transaction, each author will receive their share of the royalties from all of those sales.