Tuesday, December 13th, 2011

Write & Publish Ebooks: Is Amazon Kindle’s “Select” lending program a good idea or not?

Amazon Kindle’s new “Select” program allows you to get paid by Amazon for lending your book out to people without them actually purchasing it. You get paid out of a fund based on how many times your book gets borrowed compared to everyone else in the program. If your book gets borrowed 100 times and another person’s gets borrowed 1,000 times, they’ll get paid 10 times what you get paid out of the fund – regardless of the price of either book.

Now, to some this may sound like a great deal, but is it really?

Here’s the verbiage straight from Amazon’s website that should make you sit up and take notice.

“During the 90-day period of exclusivity, you cannot distribute your book digitally anywhere else, including on your website, blogs, etc. However, you can continue to distribute your book in physical format, or in any format other than digital.”

Now, if you’re planning to do absolutely NO other marketing, then it may be fine to include yourself in the program. But I personally don’t see an advantage to tying up my rights to sell my ebooks, especially from my own website.

Let’s take a closer look at the numbers. Let’s say Amazon has 1 million books on Kindle and they all get borrowed 10 times. That’s 10,000,000 shares of a $500,000 pie each month. That comes out to each borrow “credit” paying a nickel. Now, let’s say you’re 10 times better than the competition and your book gets borrowed 100 times. That means you made a whopping $5.

Combine that with the fact that Amazon doesn’t give you customer information, email, etc. which means you can’t follow up, and the deal isn’t quite as good. So unless you have a darn good way to capture people out of Kindle books or you plan to only offer your ebook exclusively on Kindle and nowhere else (which I do with some of my ebooks), then the Kindle “Select” program may not be that great a deal.

Taking one last pass at the example above, let’s say instead of 100 people borrowing your ebook, you sold 25 of them instead. Which scenario puts you further ahead? Even at 99-cents, you’ll make more money, net more serious customers, and NOT tie up your rights to sell on your own website or anywhere else you darn well please!

Don?t get me wrong. I LOVE Amazon. I LOVE the Amazon Kindle program and I make a LOT of money from it (along with selling my other products on Amazon). But unless you are ONLY selling on Kindle, it may not be worth your while to try to get your piece of what seems like a great big pie, but in reality you’ll only end up with a tiny sliver of what you could have gotten otherwise with some basic marketing effort.

Still have questions? Here’s a link to the FAQ on Amazon Select for more and you can also read the terms of service for the program:

https://kdp.amazon.com/self-publishing/help?topicId=A6KILDRNSCOBA


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37 Responses

December 13, 2011

Thank you Jim for the heads up on that new program. Some programs sound good until you actually get caught up in them. I surely do not see an advantage to that program. I want to be able to market my book any place I choose at any time that I choose.

Joyce Jagger


December 13, 2011

Hey Jim,
Thanks for offering a concise view of the problems of Amazon’s new sharing program. You are not the first to voice concerns. Big publishing companies are threatening law suits and, with very limited exceptions as you’ve so very well outlined, I’m advising my copy writing clients to steer clear of it. One only has to read the agreement from Amazon to realize this does nothing for the author, and unless they opt out their books are offered for free once again for another 90 days.

I too love Amazon, in fact I have the new Fire, but they have been promoting the new Prime accounts like crazy which is a profit center for them, and coupled with this new program they have everything to gain and very little ($6 mil is obviously very little to them or they wouldn’t be going in this direction) to lose.

I’m hope Amazon wakes up and realizes they either have to be a seller of books or a big library in the sky, but they can’t be both and expect authors to participate.

Keep up the good work, Jim…
Carl


December 13, 2011

Hello Jim,

Thanks for the 411 on this, I’ve been wanting to get into the Kindle Digital Ebook Publishing, I’ve heard some really amazing stories about it.

It now seems like, as soon as those who wish to self publish, start finding a way to sort of get the upper hand, Amazon might be trying to put the screws to them.

Like you, I don’t relish the idea that my content would be tied up to the point I can’t even share it on my own sites while it’s in the KDP Select Fund, not to mention the loss of being able to follow up with my customers.

Sounds like a raw deal to me.

Thanks for sharing,

Willie Robertson


December 13, 2011

Thanks Jim, I already made the mistake. I uploaded a book by accident (Touched the wrong tab while reviewing it) After reviewing it, I wanted to unpublish and change some things. Could not do it. They sent me a note stating that it had to remain there for the full 90 days. They will allow me to move it to a “draft” status, and leave it there for 90 days, but who would want to do that.
That will be the last time I take advantage of that program.


December 13, 2011

It pays to read the fine print! Even if a person UN-selects the Amazon programs, they still cannot sell elsewhere until the term expires. What a way to be caught up in an Amazon “web”. No, thank you very much!

[You can un-publish your KDP Select-enrolled titles at any time during the term. However, keep in mind that your commitment to the KDP Select terms and conditions, including exclusivity, will continue even after you have un-published your title. In other words, you cannot un-publish your KDP Select-enrolled title from KDP and make it available on another sales channel before the title?s current KDP Select term expires.[


December 13, 2011

Thanks for the heads-up, Jim. I had a niggly feeling this wasn’t such a good deal (anything that says ‘exclusive’ in connection with a big company like Amazon makes me nervous). Now that you’ve laid out the numbers, I think my intuition was right. I won’t be joining this “Select” group of authors!


December 13, 2011

Hi Guys,

Yeah… it’s not as straightforward as they make it out to be… which concerns me that once you’re in, it’s hard to get out. It just isn’t a great deal for the authors.

The one thing I’d suggest is getting as many ebooks up as you can before they change the 70% royalty option… which I suspect they will once they hit what they consider to be critical mass.

Jim


December 13, 2011

Thanks for breaking this down. Got the email from Amazon last week but set it aside to read later. You have done the heavy lifting and I am with you and everyone else here, nope! They are pretty savvy and will probably look at this when the X$%^ hits the fan and lots of authors start complaining.

R


December 13, 2011

I am choosing to ‘Not Select’ this new ‘Select’ program. Everything in life is better as a win-win, and this just doesn’t pass that test for me.

Connie Ragen Green


December 13, 2011

Great insight on the Kindle Select program… Thanks!

I have another issue which has been driving me a bit nuts… getting the Kindle book to lay out properly. Every attempt so far has been a joke… awful results.

Does anyone here know of anyone who specializes in taking a completed PDF of a title and converting it so it looks good in Kindle? If so, perhaps you would be kind enough to share that information, please.

Thom Reece


December 13, 2011
Dr. Michael (The D.O.C.)

Hey Jim!

I’m waaaaaaaay ahead of you, buddy…

I actually got an email from Amazon about this program, and I also got an email from one of my mentors in the Publishing Niche, recommending the program. I don’t think that my mentor took too close of a look at the Program…

I am a Professor, Entrepreneur, and published author (text-books) that has been paid “royalties” for many years from the sales generated by my Criminal Justice, Law Enforcement, and Education texts.

The System has ALWAYS leaned very heavily on the side of the person/company who “owns” the rights to the Intellectual Property, irrespective of the duration of ownership. This is why I am now a Publisher, myself…

I am also a HUGE fan of Amazon and the Kindle version of books, however, Amazon will definitely make the “Lion’s Share” with this new Program and they will “Kill” your ability to sell your eBooks on “Barnes&Noble.com” and other online outlets…

BUT… even MORE insulting, You can’t even sell your Book on YOUR own Website!!!

This is so Unbelievable that I had to read their email twice, to make sure it wasn’t some kind of prank. In my opinion, the joke will be on YOU, if you sign up for this New Program.

QUESTION: Is Amazon just protecting it’s place as the 800lb. Gorilla in the online eBook delivery niche, or is Amazon afraid that it will lose market share, as other companies arrive on the scene to offer eBooks for sale?

This may be Amazon’s version of Bill Gates’ Micro-Soft Licensing Control over which operating system computers are equipped with, as they are manufactured… Smart move up front, but he was penalized, on the back end, by Uncle Sam, for having a monopoly :-)

Jim you did a GREAT JOB in highlighting the major points of this New Amazon Program, for everyone to consider. As usual, you Sir, are a “Gentleman and A Scholar” in your effort to enlighten the masses.

I’m always grateful that I’m one of your subscribers, because just as you did with the “FCC Changes Webinar” you did, a couple of years ago, you stay on top of the BS and make sure that we do too.

Thanks,
Dr. Michael (The D.O.C.)
“Keep On, Keeping On…”


December 13, 2011

Jim,

Thanks for the great insights on this. I had no idea how much money that an E-Book authour could be leaving on the table until I read your post today.

Yours In Health!

G.E. Moon II


December 13, 2011

Thanks Jim and everyone online who responded.
A bit new to this and the information will help.
Have no problem going to Amazon for purchases,
but this is a whole new ball game. Amazon is in
the business of making money.


December 13, 2011

Hi Dr. Michael,

Re: QUESTION: Is Amazon just protecting it?s place as the 800lb. Gorilla in the online eBook delivery niche, or is Amazon afraid that it will lose market share, as other companies arrive on the scene to offer eBooks for sale?

I think they are just trying to solidify their position with both unique and exclusive content to make it harder for anyone to come in later (IMHO).

Thanks for the thoughtful post :-)

Jim


December 13, 2011

Thom,

Re: Does anyone here know of anyone who specializes in taking a completed PDF of a title and converting it so it looks good in Kindle?

Don’t try to lay it out… just upload it as a Word .doc file with very little formatting and it will look a lot better. This is definitely a case of “less is more” when it comes to Kindle formatting (seriously).

Jim


December 13, 2011

Connie,

That’s a GREAT rule to live by :-)

Jim


December 13, 2011

Jim …

As usual, you are right on top of things at just the right time. Your insights are always greatly appreciated. Especially now that I am in the process of placing books on Amazon.

Whatever happened to the ‘Friday Smackdowns’?


December 13, 2011
Rick

Jim,

I’d love to be able to publish to Kindle and make some bucks -BUT – the BIG PROBLEM is trying to get everything formatted correctly. Right now TOO MANY HOOPS to jump thru. My suggestion to you Jim is come out with a SOFTWARE Application that will publish to Kindle perfecly without having to do anything but enter your text and pictures into the program. The program would then automatically formatt everything ready and raring to upload to kindle without any other steps like having to use Mobi or whatever else. As far as what I’ve read over the last few months you have to use about 3 or 4 different programs to finally get a book Kindle PERFECT. We need just 1 piece of software that covers all the bases. Just a suggestion Jim – but I know you have the connections and brains to come up with such a software and you would solve a HUGE problem for likely 10s of thousands of people who WANT to publish to Kindle but DON’T want to use TEMPLTAES that DON’T work (already tried some and know of others who did too and ended up with frustration!). Thanks for listening to my ramble – but I think there’s some BIG BIG money to be made by anyone who can crack the Kindle Publishing code with a piece of software they programmed that doesn’t require Word or etc.


December 13, 2011

Hey Jim, Thanks for the heads up on Amazon Kindle. I probably got something from them but did not realize the implications of signing up to the lending program.

I have not done much on Kindle but it’s on the agenda for next year so I will certainly exercise caution.


December 13, 2011
Elaine Wilkes

Kindle said you can still sell your book on Kindle too. From my understanding, you can sell AND be in the program. Correct?


December 14, 2011
John Morris

Hey Jim – Thanks for the very timely info; I just started hearing about this program within the last week or so, and was definitely curious! I did not hear about the “90 days” clause. Now I think I’ll hold off for a bit rather than rushing into anything. Keep up the good work!

Best Wishes,
John


December 14, 2011

Re: Art Leslie

:D – I do need to do a smackdown here again sometime… just been busy I guess :-)

Jim


December 14, 2011

Re: Elaine

Elaine,

You can sell your book on kindle and anywhere else as long as you don’t put your book into the “Select” program.

Jim


December 14, 2011

Re Rick – formatting for Kindle

Rick,

I use Word to format mine for Kindle

You can check out this conversion software. I’ve heard it’s good from a reliable source, though I have not used it

http://calibre-ebook.com/about

Jim


December 14, 2011
Jim

Jim,

Please tell me that you can still sell your ebook on Kindle without joining the “Select” program!

Jim


December 14, 2011
Edward

This article may interest the readers. Amazon is becoming the NINE hundred pound gorilla and is still very hungry:

http://www.nytimes.com/2011/12/13/opinion/amazons-jungle-logic.html?_r=1&ref=books


December 14, 2011

re: Jim

Yes you can still publish to Kindle without doing the Select program… no worries

Jim


December 14, 2011

Edward,

That is a great article … thanks for sharing… I guess I missed a bunch while out on the Jim Boat 5… and that is a bit extreme what Amazon is going there… not good at all (“not cool” as my 5-year-old grandson would say)!

Jim


December 14, 2011
Jim

Thanks Jim.


December 15, 2011
Sybal Janssen

Read and reread your post as well as the highllighted material straight from the Amazon’s horse’s mouth. Great that your pointed out the fine print, but “I gotta tell you” that I wouldn’t be loaning any of my ebooks to anyone. Except for my family members, who might or might not get free copies of my books, the only people who would be interested in a loaner copy of my ebooks would be those in the market that I am selling too, and they can shell out the $2.99 that I am charging. In general, people are only going to be interested in “borrowing” copies of the latest best sellers. I sort of wonder if that disclaimer has not been put into the Amazon contract because purchase of the Kindle version of the books may give your the same ownership rights as a hardcopy, and potentially the right to distribute.


Jim,

I just skimmed something about this Kindle book lending program the other day, but didn’t get into the fine print. Thanks for bringing this to our attention. I will definitely steer clear of the lending program. As a consumer, it sounds like a good, economical thing. As an author, not so much.

Thank you again,
Deb


December 16, 2011
Brit

Hi Jim I have been looking at this offer from Amozon and have ask will my ebook get advertising from them out of all the other ebooks they sell. (no answer yet) I was going to put my website and another other inside my ebook. I don`t see any way in amozon that says this can not be done. If books on this program are given top placing seems a good idea. What do you think? Brit UK


December 17, 2011

Hey Jim,
As always you are the canary in the coal mine!
I got an email from Amazon re that “special” “exclusive” “opportunity”….. and it just didn’t feel right, kind of like saying hey come over, let us let everyone have a sample of your fresh baked cookies and we will pay you with the “sound” of our money after all don’t you want people to know you??? …… kinda like making “legal” piracy of copyright…. imagine if movies were released that way….. there would be an outcry and then guess what… NO MORE MOVIES….

It is just another example of the devaluing of intellectual/creative pursuits in the drive to supply “content”….
In a “real” library licensing agreement (at least in the old days) the library would pay a higher than suggested retail price for the book to the publisher to compensate for the lending (distribution) rights…. I think it was called a “distribution CONTRACT”…..
In television distribution, you would sell a program based on number of minutes, number of episodes, audience size, how many times it would be shown in a certain number of years etc.
This “offer” is so insulting to authors there are no words.

Pluyeeeze….. what a bunch of hooey.

I am so glad you said what you said. Hopefully there there others who are saying something!
Check out other sites like http://www.smashwords.com they may not have the ranking but a fiasco like this could make these guys an attractive option. If anyone else knows some other ebook sites please let us know in this forum.

Veeeeeee


December 17, 2011

Re: Brit

You can definitely put your web address and other information inside your book!

Jim


December 17, 2011

Re: Deb Gallardo

I think you hit the nail on the head with a perfect summary :-)

“As a consumer, it sounds like a good, economical thing. As an author, not so much.”

Jim


December 17, 2011

Re: Vee

I hear you loud and clear :-)

Jim


December 17, 2011

Re: Sybal Janssen

Hey Sybal,

I think you’re right… I’d rather go for the sale than the lend… only reason I wouldn’t would be if it was an Amazon-only strategy I was trying out and attempting to get people to buy another book in a series or take some other specific action ON AMAZON itself.

Jim