The per-borrow payout has been a [little] over $2 for months, now, slightly more than the royalty on a $3 eBook purchase. Amazon has offered a 30-day free trial, so I expect that August is going to push down that payout quite a bit (my guess: it will be around 50¢) despite Amazon increasing the fund by 66%. For some authors, the increased borrows will more than offset the depressed per-borrow payout. Others will hate it—perhaps enough to yank their books out of Select.
Amazon is walking a tightrope. At current payout levels, an average of four borrows per member per month (about one per week) will nearly wipe out the monthly subscription fee. But if the payout drops too far, authors will pull their most popular books, making the service much less attractive.
Oddities, and it would get a borrow or two every other month. That changed little; November was the first month I got any borrows since KU started, but I got two. Woohoo. I also said things would be a little more clear by the end of September… it took a couple more months than that.
Okay, now to the last part, the part I got right: Amazon is walking a tightrope, and it’s wobbling. For some writers, including some top indie sellers, KU has been a disaster. The Bookseller blog, engaging in a little hyperbole, wonders if the honeymoon is over. H. M. Ward, a highly-popular romance writer, yanked her books out of KU saying, “I… lost approx 75% of my income [counting bonuses] … The number of borrows was higher than sales. They didn’t complement each other, as expected.” Top borrowees like Ward got “All-Star” bonuses on top of the monthly pot, but it wasn’t enough to make up for the plunge in sales. (The Bookseller claims that Howey “expected to pull most of his work out of [KU]” but did not furnish a link. You toss a potential bomb like that, you ought to cite it.) Anyway, there’s a lot of good info in this very long article. If you feel the urge to TL;DR out of it, skip to the bottom for some meaty stuff.
Meanwhile, I’ve been seeing reports on the KDP forums about “writers” who throw together what amount to sales pamphlets, upload them by the dozens, then borrow them through sock-puppet accounts. At $1.40 per borrow, they need only borrow eight of these junk “books” to recoup their KU subscription fee, and they often have fifty or more books on offer. And who knows how many sock puppet accounts they have going? Some forum members estimate that the scammers are pulling down the per-borrow payout by 30¢ or more.
I don’t see a viable way forward for KU, defined as something Amazon, top authors, and subscribers can agree upon. If Amazon adjusts the pot enough to bring the payout back up to $2 per borrow, they stand to lose money as avid readers grab one book after another. But if they don’t, and the most popular authors continue to jump ship, KU subscribers will drop out as well. Some of the “name” authors suggest changing KU so members subscribe to authors, which translates to auto-purchasing books as they come out. I can see where mischief could be made there, though.
On the other hand, authors with $1 or $2 books, or first-of-series titles that they might otherwise try to make free, could still benefit from KU. A $2 book (like Oddities) under the current system earns about 70¢ per purchase—and around twice that per borrow. Instead of making the first book of a series free, put it in KU and encourage people to check it out. The author still gets a payday, and a potential new fan who buys the other books.
The question is still the same: come spring, will there be enough books in KU—and the right kinds of books—to keep enough people interested in subscribing? Floor’s open, tell me what you think!