In this week’s episode, we look at five tips and tricks for optimal ebook pricing.
This coupon code will get you 25% off the ebook versions of my Tower of Endless Worlds series at my Payhip store:
TOWER25
The coupon code is valid through June 30, 2025. So if you need a new ebook this summer, we’ve got you covered!
00:00:00 Introduction and Writing Updates
Hello, everyone. Welcome to Episode 254 of The Pulp Writer Show. My name is Jonathan Moeller. Today is June 5, 2025, and today we are looking at ebook pricing strategies. Before we get into that, we will do Coupon of the Week and have an update on my current writing and audiobook projects.
First up is Coupon of the Week. This week’s coupon code will get you 25% off the ebook versions of my Tower of Endless World Series at my Payhip store, and that is TOWER25. And as always, the coupon code and the links to the store will be in the show notes. This coupon code is valid through June the 30th, 2025, so if you need a new ebook series to read this summer, we have got you covered.
Now for an update on my current writing projects. As of this recording, I am 53,000 words into Shield of Power, which will be the sixth and final book of my Shield War series, and that puts me on Chapter 13 of 29. I feel like the book is going to be between about 105,000 to 110,000 words in rough draft, but we will see when I get there. I’m hoping to have it out before the end of June, but there’s a good chance it may slip to July, so listen to this space and watch my website for updates.
I am also 104,000 words into Stealth and Spells Online: The Final Quest, which as the name implies, will be the third and final book of the Stealth and Spells trilogy. I am right in the middle of writing the climactic scenes of the story and because of the length and how far I’ve gotten and I’ve been chipping away at this since October, it will come out very quickly after Shield of Power, possibly even in the same month. I’m also 5,000 words into Ghost in the Siege, which will be the sixth and final book of the Ghost Armor series, and that should probably come out towards the end of summer, if all goes well.
In audiobook news, Brad Wills is recording Shield of Battle and Hollis McCarthy is recording Ghost in the Corruption right now. I know they’re hard at work at it because both of them sent me emails with questions about pronunciations today. Hopefully we’ll have some exciting new audiobooks for you later this summer.
00:02:12 Main Topic: Ebook Pricing Strategies [Note: All Prices Referenced are USD]
And now let’s move right into our main topic, ebook pricing strategies, which is often a contentious topic for indie authors. We’re going to go over five different ebook pricing strategies to look at when they’re the most effective or why you might want to try them. I’ll talk about when I have used each of them and why I chose to do so or not to do so, as the case might be.
As I said, this is often a contentious topic for indie authors, especially newer indie authors who often have in their head an idea that their book is worth X amount of dollars because the amount of work they put into it, like for example, “my novel should be a minimum of $9.99 or $14.99 because of all the work I put into it. It was a year’s worth of work, and if you can buy a fancy latte at Starbucks or $6 or $7 or whatever, then you should be able to pay $9.99 for this novel upon which I toiled for a year.”
And that is a nice sentiment, but in reality it doesn’t work that way for a couple of reasons. For one thing, people are only willing to drop that kind of money on authors that they’ve known for a long time, like hardcore Stephen King or James Patterson or Jack Reacher fans dropping $20 or $30 for the novel in hardcover when comes out the first time. That kind of loyalty has to be earned over the long term, and if you’re brand a new indie author or a newish indie author, charging $9.99 for your ebook is something of an ask.
For the second thing, an ebook is not a physical object, and there is a point where people blanch at paying a lot of money for an item that is essentially electronic and digital. If you’re paying $9.99 for a paperback, at least you’re getting the paperback, the physical object. Paying $9.99 for something utterly intangible like an ebook is a much harder sell. Because of that, the optimal price point for ebooks tends to be a bit lower than that.
For the sake of not adding too many caveats to each point based on genre and format, let’s assume for each of these strategies, the ebook we are pricing is a fantasy novel of about 90,000 words without any maps or images and is not being traditionally published by an established author. In an interview, Smashwords founder Mark Coker presented data from Smashwords that showed most indie authors selling full length fiction will see the most success setting their ebook prices at either $2.99, $3.99, or $4.99 (depending on genre). That is still the case, generally speaking. However, there are some special pricing strategies that may increase your sales, and that is what we’ll be focusing on this episode.
#1: The first of the five pricing strategies we will look at is permafree, and permafree means that the book is permanently set to free instead of just for a short period of time. Why does this work? People like free things. People will eagerly take something that’s free while something that’s even $2 or $3 will lead to hesitation on their part, especially for an unfamiliar author, and that is true of $0.99 as well.
However, permafree is a strategy only makes financial sense if the book is the first book in a series and there are at least a few books in the series already published. If you have one book and make it permafree, that’s fine if you want to give away the book to readers so it’s read, but it will not make you any money. It makes more sense to make the first book in a series free when there are like four or five or more books in the series.
Just setting a book to permafree is not enough on its own. You still need to spend money on ads and marketing, so you’re relying on sales from the next several books in the series to subsidize the free book and marketing cost. Very often I will advertise the free first book in one of my series and then calculate whether the ad was successful or not based on how many copies of the rest of the books in the series that I have actually sold.
There also needs to be a strong hook at the end of the first book to lure readers on to the second book to inspire readers to continue, but not an outright cliffhanger, which will annoy most readers and could hurt your reviews. If you’re going to make your first book in the series free, it is a generally bad idea to end that book with a cliffhanger or to end that book with an unresolved main plot. People will get mad at you and accuse you of trying to nickel and dime them on the rest of the series.
It’s also a good idea to put the link to the second book right at the end of the first book in order to help the reader continue on in the series. You also need to accept that most of the attention for permafree titles often comes from so-called book hoarders. This strategy is not a great one for trying to get reviews as there is a significant segment of readers who blindly grab whatever is free and then they never get around to reading it, much less finishing it.
In the same vein, you have to accept that the percentage of readers converting from the free ebook to the rest of the paid series will be much lower than the conversion from a paid book to the next paid book in the series normally would be. What kind of conversion rate am I talking about? If you have say, a conversion rate from the free first book to the paid second book of 5-10%, you are doing very well.
How have I used the strategy? I’ve made almost all of my series starters permafree, and since I write fairly long series, it’s easier for me to do that than for people with a series with only two or three books. Making books permafree has been a major part of my indie publishing efforts over the last 14 years, and I found it’s pretty much the most consistent low effort thing I can do to drive sales. It’s like a constant trickle, though it does work better on the non-Amazon stores than it does with Amazon today.
#2: So now we will move on to our second pricing strategy, which is the $0.99 price. Some authors will temporarily set the $0.99 price at launch in order to gain some reviews and then raise the price once that has happened. Others will price the first book in the series at $0.99 and then price the subsequent books in the series higher, in a similar strategy to permafree. This strategy gets a higher percentage of the people reading the book than permafree and authors have reported a higher percentage of read through continuing to the next book as well.
This price does well with BookBub deals and could be used temporarily for that. BookBub customers are extremely price sensitive and they expect steep discounts. The biggest downside of the strategy is that on sites like Amazon, you’ll be paid a lower royalty rate of 35%, so any ads or marketing costs will effectively eat most of your profits. However, if your book is wide in all the stores, many of them offer better royalty rates than Amazon for books at $0.99.
For myself, what I’ve done for long series is that I make the first book free and then the second book $0.99, and then all the books after there are full price. Obviously, you take a bit of a hit on the first few books in the series, but if you have a long series like I do, then you can definitely make up the lost costs with sales of the rest of the books. I’ve also used $0.99 to pretty good results with BookBub deals over the years.
#3: The third pricing strategy we’re going to look at is the box set. This strategy applies to a series since you’re packaging multiple full length novels together and sometimes throwing in a short story or other special content. The important thing about pricing box sets is that it should be a substantial discount over buying the full length books in the sets separately. The price will be a bigger hook than adding special features.
You might want to make the first box set less expensive than the subsequent ones in order to motivate readers to begin the series. This strategy is great for Kindle Unlimited (KU) since readers are getting multiple books but only have to take one of their allocated book spots in the KU Library. Longer books also lead to bigger payouts, since KU operates on pages per read system, which means that the longer the book is (and assuming someone actually reads it), you’ll then get a bigger payout. This also applies somewhat in a more limited way for Kobo Plus, in the way that it calculates page reads. They use minutes read instead of page reads.
How have I used this? I have many box sets, and because of the limitations of Amazon pricing, most of my box sets aren’t above $9.99, but if the three novels in the box set are individually $4.99, that is a savings of 33% as opposed to buying the books individually.
So I mostly did the box sets to provide a base for doing the box sets in audio, but they do also generate some income on their own because of the savings.
#4: The fourth pricing strategy we’re going to look at is coupons. The most common way to provide coupons in Indie Author World is either through Smashwords or a direct sales page, such as My Payhip store, which I mention frequently on this podcast. Coupons are a convenient way to make a book free to only a select group of people, such as newsletter subscribers or contest winners. It is by far the easiest and most flexible way to discount your books temporarily. For example, on Payhip, it only takes a couple minutes to set up a coupon and then it will be ready to use instantly or for whatever specific dates and times you have set the coupon to run.
They are the most effective when they are short term to create a sense of urgency to buy the book, but not so short term that readers miss out on the deal. The biggest downside is that most buyers are not as familiar with using Smashwords or a direct sales page, so they may be hesitant to use a new site, especially if they have a large ebook collection on another platform like Kindle.
How have I used this strategy? For years, I’ve used the Smashwords coupon strategy to give away a free short story when I publish a book (with Ghost in the Corruption, it was Ghost Spells, and when I finish Shield of Power, the short story for that will be called Consort of Darkness and newsletter subscribers will get a Smashwords coupon code they can use to get a free ebook copy of the short story). I also frequently do Coupon of the Week through my Payhip store, where I offer 25% off a featured ebook or series or 50% off an audiobook.
Since the royalty rate on Payhip is higher than on Amazon or Audible, I’m able to offer generous sales prices without losing money on a discounted sale. So once you have a large enough catalog, coupons through direct sales can be an effective strategy.
#5: And the fifth and final sales strategy we’ll look at this episode is Kindle Countdown Deals. If your book is in Kindle Select/Kindle Unlimited, Kindle allows you to run a limited time discount on it. Readers will see a countdown clock showing how long they have to buy it at the price. To be eligible to run a Countdown Deal, your book must have been enrolled in KDP Select for at least 30 days, and your book’s list price must have been unchanged for 30 days before and 14 days after the deal runs. There are some other requirements, so read Amazon’s documentation page very carefully before you decide to run a Countdown Deal.
The biggest advantage of a Countdown Deal is the royalty rate for the book during the deal will be based on the book’s regular price and not what it’s discounted to during the sale, so this is a nice way to try a lower price for your book. For example, if the book is usually $4.99 and during the Countdown Deal it is lowered to $0.99, you’ll still get 70% of the sale rate. Now granted, 70% of $0.99 is not as good as 70% of $4.99, but you may be able to make it up in sales volume. This strategy gets a lot more viewers than a coupon with Smashwords or your direct sales page would. However, it’s not nearly as flexible as those options. It requires some advanced planning. This method is most effective when paired with a marketing push, such as an increase in ad spending or a newsletter notifying your newsletter subscribers about the deal.
The biggest downside of this strategy is that you have to be exclusive with Amazon in order to take advantage of the deal. If your books are wide, you can’t do a Kindle Countdown Deal for them. I’ve used this strategy intermittently with limited success, I have to admit, because generally I don’t have that many books in KU at any given time. That said, when I have had books in KU, I’ve tried Kindle Countdown deals and had moderate success with them. Overall, I do think the other methods I’ve already mentioned on this episode are more effective, but if you have books in KU, it is definitely worth trying a Kindle Countdown Deal in combination with some ads and a newsletter push.
So hopefully these five pricing strategies will help you make sense of the pricing of books in Indie Author World and will be helpful to you as you decide how to price your own books.
So that is it for this week. Thank you for listening to The Pulp Writer Show. I hope you found the show useful. A reminder that you can listen to all the back episodes on https://thepulpwritershow.com. If you enjoyed the podcast, please leave a review on your podcasting platform of choice. Stay safe and stay healthy, and we will see you all next week.
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