KDP Select Prize Fund – August 2014 Update

Kindle Unlimited

Kindle Unlimited

People who sell Kindle book on Amazon as members of the Kindle Digital Publishing Select program (KDPS) are always interested in how much money they got paid per “borrow“. In the past, Amazon Prime members were allowed to “borrow” books as a benefit of their Prime subscription, and if they “borrowed” your Kindle book, it was worth money to you, the author.

Amazon “announces” the value of a borrow indirectly when they publish the author’s reports around the 15th of each month. Quickly, the value of the previous month’s borrows is discussed on the various Kindle forums along with celebrations or gnashing of teeth, depending on the number. Amazon calculates the number by declaring the value of a giant “KDP Select Prize Fund” for any given month, then dividing that amount by the total number of borrows. Each author gets a share of the prize fund equal to the number of borrows they had that month.

With the launch of Kindle Unlimited in the USA, the amount of borrows has soared, and, almost certainly, the number of sales has fallen, which means authors are spending a lot more time fretting about the value of a borrow. Neil Shearing has taken a close look at the numbers, and what they mean for Kindle authors, at his blog. Take a look.

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