Pricing Strategies
Price your books strategically to maximize revenue and reader reach. Learn about launch pricing, promotions, and finding your optimal price point.
Why Pricing Matters
Price affects everything:
- How many people buy
- How much you earn per sale
- How readers perceive quality
- Which royalty rate you receive
- Whether you can advertise profitably
There is no single "right" price. The best price depends on your goals, genre, and business model.
Royalty Tiers
On Amazon KDP, your price determines your royalty:
| Price Range | Royalty Rate | Notes |
|---|---|---|
| $0.99 - $2.98 | 35% | Lower royalty, higher volume |
| $2.99 - $9.99 | 70% | Best margin (for KDP Select) |
| $10.00+ | 35% | Premium pricing |
Note
70% royalty on Amazon requires enrollment in KDP Select (exclusive to Amazon) or meeting specific delivery cost requirements. Check Amazon's current terms.
Common Pricing Strategies
Permafree First in Series
Make book 1 permanently free to attract readers:
- Removes the purchase barrier
- Builds email list through book
- Relies on read-through to later books
- Works best with longer series (4+ books)
Tip
Amazon does not let you set a book to free directly. You need to have it free elsewhere (Apple, Kobo) and request a price match.
$0.99 First in Series
Low price for book 1, higher for sequels:
- Still attracts price-sensitive readers
- Generates some revenue (35% royalty)
- Easier to set up than permafree
- Common starting strategy
Full Price Everywhere
All books at $4.99, $5.99, or $6.99:
- Maximum revenue per sale
- Requires stronger marketing
- Signals quality to readers
- Works better for established authors
Wide vs KU Pricing
Different strategies for different distribution:
- Wide — Often higher prices since no KU page reads
- KDP Select — Can price lower because KU readers add revenue
Launch Pricing
New book launch options:
Launch Sale
- Price at $0.99 or $2.99 for first week
- Encourages immediate purchases
- Builds ranking momentum
- Return to full price after launch week
Full Price Launch
- Launch at your target price
- Your super fans will buy anyway
- Maximize revenue from early sales
- Save sales for later visibility boosts
Pre-Order Pricing
If you use pre-orders, your pre-order price is locked. Plan your launch pricing strategy before setting up pre-orders.
Promotional Pricing
Temporary price drops to boost visibility:
Countdown Deals (Amazon)
- Time-limited discount with countdown timer
- Maintains 70% royalty during sale
- Only available in US and UK
- Limited to once per quarter
Price Drops
- Simply lower the price temporarily
- 35% royalty if under $2.99
- Available anytime, anywhere
- Can combine with promotion sites
Promotion Sites
Sites that feature discounted books:
- BookBub — Most powerful, hard to get
- Freebooksy — Free books
- Bargain Booksy — $0.99-$4.99 books
- Robin Reads, BookGorilla, etc.
Stacking Promotions
Combine a price drop with multiple promotion sites on the same day for maximum impact. This is called "stacking."
Pricing by Genre
Different genres have different norms:
| Genre | Typical Ebook Price |
|---|---|
| Romance | $2.99 - $5.99 |
| Thriller/Mystery | $3.99 - $6.99 |
| Fantasy/Sci-Fi | $3.99 - $6.99 |
| Literary Fiction | $4.99 - $9.99 |
| Non-Fiction | $4.99 - $14.99 |
Note
Research your specific sub-genre. Billionaire romance might price differently than cozy mystery. Look at comparable bestsellers.
Pricing by Format
Ebook
- Most flexible pricing
- No printing costs
- $2.99 - $9.99 for most fiction
Paperback
- Must cover print costs
- Typically $10.99 - $17.99
- Price 2-3x ebook is common
Hardcover
- Premium format, premium price
- $18.99 - $29.99 typical
- Often for special editions
Audiobook
- Higher production costs
- $14.99 - $24.99 for direct sales
- Audible uses credit-based pricing
Testing Prices
Find your optimal price by testing:
- Start at your best guess price
- Run for 30-90 days
- Change price and run again
- Compare revenue (not just units)
- Find the price that maximizes total revenue
Tip
Revenue = Price × Units. Selling 100 books at $4.99 ($499) beats selling 150 books at $2.99 ($449).
Best Practices
- Know your genre norms — Do not price far outside expectations
- Consider your series — First book can be loss leader
- Factor in ads — Higher prices give more margin for advertising
- Be consistent — Readers notice if prices fluctuate wildly
- Test and learn — Data beats assumptions
- Value your work — Do not race to the bottom