The NYTimes reported yesterday on Random House’s rights grab on their backlist.
We’d like to point out to authors and agents that our royalty rate on ebooks is 50% of the net.
On the somewhat typical $9.95 ebook Small Beer Press receives 50% of the retail, so call it $5. So the author receives $2.50. Not bad. That’s more than the 7.5-10% of retail that we can do on paperbacks and equivalent to 10% of retail on a $25 hardcover.
On the small percentage of ebooks sold directly from our site the math goes like this:
Author receives: $4.68