Latest / 🧭 The Ease Equation Podcast / Book Pricing and Royalties

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Book Pricing and Royalties · 🧭 The Ease Equation Podcast

• 0:00
  SPEAKER_00: Welcome to The Explainer.
• 0:01
  SPEAKER_00: All right, let's jump straight in, shall we?
• 0:03
  SPEAKER_00: Today, we are breaking down the brilliant insights from Chapter 8 of
• 0:07
  SPEAKER_00: the Canadian Self-Publishing Blueprint.
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  SPEAKER_00: Specifically,
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  SPEAKER_00: we're focusing on pricing,
• 0:12
  SPEAKER_00: royalties,
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  SPEAKER_00: and financial strategy for Canadian indie authors We're taking you from
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  SPEAKER_00: a creative writer who just happens to have a book to the CEO of a publishing startup
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  SPEAKER_00: who has completely mastered their financial strategy.
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  SPEAKER_00: So go ahead and grab your notebook because we're really getting into the numbers today.
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  SPEAKER_00: Listen, you really have to understand
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  SPEAKER_00: that every single pricing decision you make directly impacts your sales volume,
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  SPEAKER_00: your perceived value in the market, and your access to distribution channels.
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  SPEAKER_00: Writing the book, well, that was the art.
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  SPEAKER_00: Pricing the book, that's the business.
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  SPEAKER_00: And honestly,
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  SPEAKER_00: if you treat pricing as an afterthought,
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  SPEAKER_00: the system will absolutely take advantage of your lack of preparation.
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  SPEAKER_00: So let me ask you this right now.
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  SPEAKER_00: Are you leaving money on the table?
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  SPEAKER_00: If you're just guessing at a price tag because it kind of feels right,
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  SPEAKER_00: or maybe because it's what a friend charged for their book,
• 1:00
  SPEAKER_00: You are almost certainly missing out on compounding revenue.
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  SPEAKER_00: A miscalculated price doesn't just cost you a few pennies per sale.
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  SPEAKER_00: It can literally lock you out of crucial royalty tiers and bookstore shelves.
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  SPEAKER_00: Here is what we're going to cover today.
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  SPEAKER_00: E-book strategies,
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  SPEAKER_00: print margins,
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  SPEAKER_00: the audiobook longtail,
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  SPEAKER_00: Canadian taxes,
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  SPEAKER_00: series and bundles, and we'll wrap it all up with the pricing checklist.
• 1:22
  SPEAKER_00: Okay, starting off with section one, ebook strategies.
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  SPEAKER_00: This is really the base of your profit pipeline.
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  SPEAKER_00: Let's look at the stark mathematical reality of Amazon KDP.
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  SPEAKER_00: To unlock their massive 70% royalty tier,
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  SPEAKER_00: you absolutely must price your book between $2.99 and $12.99 Canadian.
• 1:40
  SPEAKER_00: If you drop it to $1.99 or say you get a bit ambitious and price it at $14.99,
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  SPEAKER_00: Amazon effectively throws you right into the penalty box.
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  SPEAKER_00: They'll slash your royalty down to 35%.
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  SPEAKER_00: Think about that.
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  SPEAKER_00: You do the exact same amount of work, but suddenly you're taking half the cut.
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  SPEAKER_00: Understanding this sweet spot is your very first major financial lever.
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  SPEAKER_00: But hey, even within that sweet spot, you still have a strategic choice to make, right?
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  SPEAKER_00: A lower price,
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  SPEAKER_00: let's say $2.99,
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  SPEAKER_00: drives high volume, because frankly, it's an impulse buy for a reader.
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  SPEAKER_00: On the flip side, a higher price like $9.99 builds prestige.
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  SPEAKER_00: It increases the perceived value,
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  SPEAKER_00: basically signaling to the reader that this is a premium experience.
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  SPEAKER_00: But of course, that might slow down your initial sales volume.
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  SPEAKER_00: You have to actively balance your desire for wide reach against your need
• 2:27
  SPEAKER_00: for sustainable income per unit.
• 2:29
  SPEAKER_00: Moving right along to section two, print margins.
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  SPEAKER_00: We're talking physical realities and wholesale economics here.
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  SPEAKER_00: Now, unlike digital ebooks, print books have fixed physical costs.
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  SPEAKER_00: Paper and ink cost real money,
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  SPEAKER_00: and that money absolutely must be paid before you see a single dime.
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  SPEAKER_00: Think of it kind of like renting shelf space.
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  SPEAKER_00: Your print royalty is only what survives after the physical materials and
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  SPEAKER_00: the middlemen take their share.
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  SPEAKER_00: It's simply the net margin left over from your list price.
• 2:59
  SPEAKER_00: Let's actually break down the exact math on this.
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  SPEAKER_00: Let's say you list a paperback for $20 on a wholesale distributor like IngramSpark.
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  SPEAKER_00: First off, it costs $6 just to physically print the book.
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  SPEAKER_00: Then, to get bookstores to even glance at it,
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  SPEAKER_00: you have to offer a standard wholesale Now,
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  SPEAKER_00: I know you might look at that $11 wholesale cut and feel totally robbed.
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  SPEAKER_00: But listen, that isn't lost money.
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  SPEAKER_00: It is the necessary cost of infrastructure.
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  SPEAKER_00: You're paying that 11 bucks to get your book into the catalogs
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  SPEAKER_00: that independent bookstores, huge retail chains, and libraries actually order from.
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  SPEAKER_00: You are intentionally trading a high per unit margin for massive institutional
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  SPEAKER_00: and retail reach.
• 3:48
  SPEAKER_00: Section 3, the audiobook long tail, which is all about expanding accessibility.
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  SPEAKER_00: Audiobooks are a totally different beast.
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  SPEAKER_00: Unlike print or digital,
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  SPEAKER_00: your audiobook pricing is largely dictated by platform policies,
• 4:01
  SPEAKER_00: not your direct control.
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  SPEAKER_00: Platforms like Audible or Findaway Voices decide the ultimate price based on
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  SPEAKER_00: the length of your book in finished hours,
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  SPEAKER_00: and your royalty percentage can fluctuate wildly.
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  SPEAKER_00: Going exclusive with one platform might grant you a 40% royalty,
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  SPEAKER_00: while distributing wide to multiple retailers might drop your per sale cut,
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  SPEAKER_00: but it'll vastly increase your global footprint.
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  SPEAKER_00: Because of all these platform rules,
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  SPEAKER_00: you have to think of audio not as some quick launch spike,
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  SPEAKER_00: but as a steady, long-game asset.
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  SPEAKER_00: Audiobooks are long-tail revenue.
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  SPEAKER_00: They just sit there working for you 24-7,
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  SPEAKER_00: building this incredible compounding income stream over years,
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  SPEAKER_00: all while elevating your brand's prestige.
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  SPEAKER_00: Okay, Section 4, Canadian Taxes and Administrative Infrastructure.
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  SPEAKER_00: As a Canadian author, you are literally dealing in international commerce.
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  SPEAKER_00: So let's talk about everyone's absolute favorite topic, the IRS.
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  SPEAKER_00: If you don't submit a W8BEN form to US-based platforms like Amazon,
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  SPEAKER_00: they are going to automatically withhold 30%
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  SPEAKER_00: Filing this one simple form drops that withholding to zero under the U.S.-Canada Tax Treaty.
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  SPEAKER_00: And hey, don't forget the CRA back home.
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  SPEAKER_00: The moment your global sales cross $30,000 Canadian in a single year,
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  SPEAKER_00: you are legally required to register for a GST slash HST number.
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  SPEAKER_00: You also need to protect your long-term sustainability
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  SPEAKER_00: by tracking every single essential deduction.
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  SPEAKER_00: The money you drop on professional editing,
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  SPEAKER_00: a killer cover designer,
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  SPEAKER_00: website hosting,
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  SPEAKER_00: software subscriptions,
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  SPEAKER_00: and Facebook ads,
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  SPEAKER_00: those are all legitimate business expenses that lower your taxable income.
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  SPEAKER_00: Solid bookkeeping is exactly how you protect your art.
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  SPEAKER_00: Seriously, keep those receipts.
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  SPEAKER_00: Section 5, Series and Bundles.
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  SPEAKER_00: This right here is how you multiply your revenue.
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  SPEAKER_00: A truly successful indie author doesn't just sell a book, they sell a layered experience.
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  SPEAKER_00: By coordinating a $12 ebook for the late night digital binge reader,
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  SPEAKER_00: a $20 to $25 paperback for the bookstore browser,
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  SPEAKER_00: and a premium audiobook for the daily commuter,
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  SPEAKER_00: you are capturing every single type of reader at their preferred price point.
• 6:02
  SPEAKER_00: You aren't leaving any segment of your potential audience behind.
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  SPEAKER_00: Now, if you write a series, your whole pricing strategy evolves.
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  SPEAKER_00: You might intentionally sacrifice your upfront margin on the first book,
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  SPEAKER_00: pricing it at 99 cents or even giving it away for free to act as a loss leader.
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  SPEAKER_00: Why on earth would you do that?
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  SPEAKER_00: Because it drastically lowers the barrier to entry,
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  SPEAKER_00: pretty much guaranteeing you acquire a loyal reader who will
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  SPEAKER_00: then gladly pay full price for books 2, 3, 4, and 5.
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  SPEAKER_00: And those?
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  SPEAKER_00: Those are your high-margin assets.
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  SPEAKER_00: Finally, Section 6.
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  SPEAKER_00: The Pricing Checklist.
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  SPEAKER_00: Executing your business plan.
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  SPEAKER_00: Running through this final checklist shifts you from an author
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  SPEAKER_00: who just blindly uploads a file and crosses their fingers into
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  SPEAKER_00: a professional operating a highly sustainable business.
• 6:48
  SPEAKER_00: So before you hit publish, have you verified your ebook is in that 70% tier?
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  SPEAKER_00: Have you actually done the math on your IngramSpark wholesale discount?
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  SPEAKER_00: Do you have your W-8BN filed?
• 6:58
  SPEAKER_00: You need to check these off one by one.
• 7:02
  SPEAKER_00: It's time to take complete control of your catalog.
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  SPEAKER_00: Stop guessing,
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  SPEAKER_00: crunch the actual numbers,
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  SPEAKER_00: and build a publishing infrastructure that truly pays you what you are worth.
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  SPEAKER_00: So take a hard look at your current project.
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  SPEAKER_00: Are you treating it like a fun hobby, or are you pricing it like the CEO you are?
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  SPEAKER_00: Let that dictate your very next move.
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  SPEAKER_00: Thanks so much for joining me on this explainer, and I will catch you in the next one.