Introduction
Gone are the days when publishing a book meant waiting endlessly for a traditional publisher’s approval. With the rise of digital publishing, indie (independent) authors now have direct access to readers and revenue. But while writing and publishing are big parts of the journey, understanding how you earn money is just as crucial.
In this guide, we’ll explore the top royalty structures and revenue models available to indie authors. From platforms like Amazon Kindle Direct Publishing (KDP) and Apple Books to subscriptions, direct sales, and beyond, you’ll discover how to choose the model that best aligns with your financial goals and creative freedom.
Amazon Kindle Direct Publishing (KDP)
Amazon KDP is the most popular platform for indie authors. It offers:
- Global distribution
- Access to millions of Kindle readers
- High royalty rates (depending on price and region)
Royalty Options
- 70% Royalty: For eBooks priced between $2.99–$9.99, with delivery costs deducted.
- 35% Royalty: For eBooks priced outside that range or not meeting Amazon’s delivery/location criteria.
Pros:
- Massive reach
- Fast publishing
- Simple royalty tracking
Cons:
- Delivery fees apply (based on file size)
- Limited pricing flexibility outside the $2.99–$9.99 range
- Exclusive terms if you enroll in KDP Select
Example: A $4.99 eBook under the 70% model gives you around $3.44 royalty per sale, after delivery fees.
Kindle Unlimited & KDP Select
If you enroll in KDP Select, your eBook becomes part of Kindle Unlimited (KU) and the Kindle Owners’ Lending Library (KOLL). This means readers pay a monthly subscription and read your book at no cost—you’re paid based on pages read.
Revenue Model:
- Paid from a monthly KDP Select Global Fund.
- You earn based on the number of pages read (KENP – Kindle Edition Normalized Pages).
- For example, if 1,000 pages are read and the per-page payout is $0.0045, you earn $4.50.
Pros:
- Discoverability via subscriptions
- Passive income from long reads
- Great for series authors
Cons:
- 90-day exclusivity (your eBook can’t be available on other platforms)
- Lower payout compared to outright sales
Apple Books, Barnes & Noble Press, Kobo Writing Life
Beyond Amazon, other platforms offer great opportunities for indie authors.
Apple Books
- Royalty: 70% flat rate (no matter the price)
- Wide international audience
- Apple ecosystem loyal readers
Barnes & Noble Press
- Royalty: 65% for eBooks, 55% for print
- Strong U.S. base
- In-store visibility for print titles
Kobo Writing Life
- Royalty: 70% for $2.99–$9.99, 45% for other prices
- Strong in Canada, Australia, and parts of Europe
- Distributes to libraries and partners
Pros of Going Wide (Beyond Amazon):
- No exclusivity requirement
- Diversified revenue streams
- Access to unique audiences
Cons:
- Requires more marketing effort
- Slower traction compared to Amazon
Tip: Use tools like Draft2Digital or Smashwords to manage multiple platforms from one dashboard.
Selling Direct via Your Website
More authors are turning to direct-to-reader sales through platforms like:
- Payhip
- Gumroad
- Shopify
- WooCommerce (for WordPress users)
Revenue Model:
- You keep 90–95% of the sale price
- Some platforms charge 2–10% transaction fees
Pros:
- Maximum revenue per sale
- Build your email list and customer base
- No platform restrictions
Cons:
- You handle fulfillment (e.g., sending eBook files)
- Requires marketing to drive traffic
Example: Sell your eBook for $9.99 on your website. After a 5% fee, you keep $9.49, much higher than Amazon’s cut.
Print Books (Paperback & Hardcover)
Even in the digital age, print books still sell. Platforms like Amazon KDP Print, IngramSpark, and BookBaby offer print-on-demand services.
Revenue Model:
- You set a list price
- Printing and distribution costs are deducted
- You receive the rest as royalty
Example: If you price a paperback at $14.99:
- Printing cost: $4.00
- Distribution cut: $5.00
- Your royalty: $5.99
Pros:
- Reach print-preferring readers
- Makes your book feel more “real” or premium
- Great for events and signings
Cons:
- Higher production costs
- Lower royalty margins
- Slower shipping and delivery
Audiobooks with ACX or Findaway Voices
Audiobooks are booming—and authors can earn handsomely by turning their eBooks into audio.
ACX (Audible Creation Exchange)
- Royalty: 40% (exclusive) or 25% (non-exclusive)
- Revenue is split with the narrator if using royalty-share model
Findaway Voices
- Distributes to 40+ retailers
- You keep 80% of the royalties after retailer cut
Example: For a $9.99 audiobook:
- Audible exclusive = $3.99 royalty
- Findaway = ~$4.80–$6.40 depending on partner fees
Pros:
- Tap into growing audio market
- Multiple distribution options
- Audiobooks command higher prices
Cons:
- Higher upfront cost if hiring a narrator
- Revenue split if using royalty-share
Subscription & Membership Models
For authors with ongoing content or a strong following, creating a membership community can bring predictable recurring income.
Platforms:
- Patreon
- Buy Me a Coffee
- Substack (for serialized eBooks/newsletters)
Revenue Model:
- Monthly subscription ($3–$10/month or more)
- Offer exclusive content, early releases, bonus chapters
Pros:
- Steady, recurring income
- Deep connection with superfans
- Freedom from retail platforms
Cons:
- Requires ongoing content delivery
- Not suitable for all genres or audiences
Licensing and Rights Deals
Some indie authors explore additional revenue by licensing their content:
- Foreign language rights
- Audiobook rights
- TV/movie adaptation rights
- Merchandising
You can sell or license these rights directly or through an agent.
Pros:
- Big potential earnings
- Reach new markets
- Increase brand value
Cons:
- Requires negotiation/legal work
- Rare for first-time authors without traction
Example: A successful indie author may license translation rights for $3,000–$10,000 per language.
Choosing the Right Model for You
| Revenue Model | Best For | Earning Potential | Ease of Use |
|---|---|---|---|
| Amazon KDP | Most indie authors | High | Easy |
| Kindle Unlimited (KU) | Fiction & series authors | Moderate | Medium |
| Wide Distribution | Authors who want full control | High (long term) | Medium |
| Direct Sales | Tech-savvy authors, list builders | Very High | Medium-Hard |
| Print Books | Non-fiction, event authors | Moderate | Easy |
| Audiobooks | High-quality narrators or wide audience | High | Medium |
| Membership Models | Authors with strong audience/community | Moderate to High | Medium |
| Licensing Deals | Popular books, niche experts | Very High | Hard |
Conclusion
There’s no one-size-fits-all model when it comes to earning money as an indie author. Your ideal royalty and revenue structure depends on:
- Your genre
- Your audience
- Your marketing strategy
- Your comfort with technology and platforms
Many successful indie authors use a hybrid approach—selling on Amazon, distributing wide, building a newsletter, and even experimenting with audio or direct sales. By diversifying income streams and understanding each revenue model’s pros and cons, you can maximize your reach and your revenue.
Start with one model, track your performance, and expand over time. The digital publishing world is rich with opportunity—you just need to claim your share.
