There’s two options when publishing a Kindle story. First, you can charge $2.99 or above and select a royalty rate of 35% or 70%. I don’t know why you would pick a 35% royalty rate when a bigger option is available. Maybe you’re very grateful to Amazon and want them to have a bigger cut? I have no idea.
When pricing below $2.99, the royalty rate is fixed at 35%. This means it’s more profitable to price stories at $2.99. However, 2.99 is a bit pricey for a short story. On KU, reading a 10-30 page story nets .5-.15 cents. I’ve heard that some authors worry about pricing their stories at 99 cents anyway as this might devalue their work, and people might think their work is poor quality or cheap.
Plus, authors should value their work and not sell themselves short. In this vein, I had been pricing all stories at $2.99. I’ve heard this is a good price for stories of at least 7,500 words, but some of my work is shorter than that. I’ve begun thinking that $2.99 is a little steep for stories of around 2,500 words.
Even with the smaller royalty rate, pricing some stories at 99 cents might make sense. When someone reads a 20 page story on KU, the author gets ten cents. If someone buys a story for 99 cents, the author receives 35 cents. This seems like a reasonable amount as its more than the KU rate and is more equitable to readers.
So, I’m trying it out. For at least a little while my shortest stories are only 99 cents. This is a great time to get some summer reading material for a low price.