How to Price Your Ebook
The complete guide to ebook pricing strategy for indie authors — covering the $0.99 vs $2.99 vs $4.99 debate, Kindle Unlimited, permafree, and price testing.
Get your pricing right, then back it up with social proof.
Get Amazon Book ReviewsEbook Price Point Analysis
Every major price tier, its KDP royalty rate, and what it's best used for.
| Price | KDP Royalty % | Royalty per Sale | Best For |
|---|---|---|---|
| $0.00 (permafree) | 0% | $0.00 | Series Book 1 reader acquisition, wide distribution |
| $0.99 | 35% | $0.35 | Impulse buys, price promotions, new author trust-building |
| $1.99 | 35% | $0.70 | Rarely optimal — falls between 35% tiers with no clear advantage |
| $2.99 | 70% | $2.09 | Series Book 1, short fiction, debut authors entering 70% tier |
| $3.99 | 70% | $2.79 | Mid-series books, novellas, established genre authors |
| $4.99 | 70% | $3.49 | Genre fiction sweet spot — full novels, series books 2+ |
| $5.99–$7.99 | 70% | $4.19–$5.59 | Nonfiction, longer fiction, strong platform/brand authors |
| $9.99+ | 70% | $6.99+ | Premium nonfiction, workbooks, authors with large existing audiences |
Core Ebook Pricing Strategies
The 70% Royalty Floor
Price at $2.99 or above to unlock Amazon's 70% royalty tier. Below $2.99 you earn only 35%, meaning a $0.99 book earns $0.35 vs $2.09 at $2.99 — almost six times less per sale.
Permafree Book 1
Setting Book 1 of a series permanently free maximises reader acquisition. It works best with 3+ books in the series and a strong read-through rate. Wide distribution (Draft2Digital, Smashwords) enables permafree outside KDP Select.
Series Staircase Pricing
Price Book 1 at $0.99–$2.99, middle books at $3.99, and the finale at $4.99. This creates a natural value ladder that rewards loyal readers while extracting full margin from committed series fans.
KU Pricing Strategy
In Kindle Unlimited, page reads matter more than unit sales. KU authors often price higher ($4.99–$7.99) because KU subscribers never pay — the listed price only signals quality to non-KU buyers browsing organically.
Launch Discount → Ratchet Up
Launch at $0.99 for the first 7–14 days to accumulate reviews and rank, then ratchet the price up to your full rate. This exploits Amazon's "Hot New Releases" window without permanently discounting your work.
Price Testing with Countdown
KDP Countdown Deals allow temporary discounts while maintaining the 70% royalty rate (US and UK only). Use them to test price sensitivity — run a $1.99 Countdown and compare unit velocity against your standard $4.99 baseline.
Great Pricing Needs Great Reviews
The right price point gets readers to click — but reviews close the sale. iWrity helps indie authors build their ARC team so every launch lands with social proof already in place.
Start Building Your ARC Team