I’m writing about it again, as Written Word Media recently published an excellent post on pricing one’s e-book. As Taylor, its author, points out, the answer depends on whether your immediate goal is to reach new readers and generate sales (along, presumably, with reviews), or to make a profit.
Price your e-book at $0.99 to maximize readership
If you’re looking for ways to increase your book/author rank and generate reviews, This graph explains why $0.99 is the best price to reach new readers, with $1.99 not far behind:
Price your e-book at $4.99 to maximize revenue
Amazon skews the results here by offering authors 35% of the earning for prices under $2.99, and 70% over that. As a result, you should price your e-book at $4.99 to maximize your revenue. You will have far fewer sales, but far more revenue.
Price your e-book at $2.99 if you want it all
If you’re like me, you’re already looking for the sweet spot where you can both reach new readers and make a small profit out of it. In this case, all you need is the graph below.
The main takeaway from all this is:
- To reach as many readers as possible, go for $0.99.
- To have some revenue and acquire new readers, go for $1.99.
- If you want to maximize revenue more than you want to acquire new readers, price your book at $2.99.
- If you just want the money, price your book at $4.99
[tweetthis]How to Price your E-book to Both Get New Readers and Make a Profit[/tweetthis]