ROYALTIES & DISTRIBUTION...& TYPOS. OH MY!
In this kinda final episode, I'll try to explain how CreateSpace calculates royalties (ie, how much money you're going to make on each book) and a little about their standard distribution vs. the Expanded Distribution Channel.
ROYALTIES:
How much you make on each book will be affected by the price you set, the cost to print the book and the percentage the 'store' takes.
The cost to print the book is spelled out clearly
here under "fixed charges". For most middle-grade books (black & white interior), this will be $1.50 per book plus 2 cents per page. (This is valid for any book between 108 and 828 pages in length). If you decide to go with the
Expanded Distribution Channel, that puts you into what CreateSpace calls a ProPlan. With the ProPlan, you pay $39 upfront and $5 each year after that, but your book costs go down and you have access to more sales outlets (more on that later). With the ProPlan, the cost for the same book outlined above would be 85 cents per book and 1.2 cents per page. For my book, the cost was $4.98 per book with the standard plan OR $2.94 per book with the ProPlan. I went with the ProPlan.
The percentage the store takes depends on the store. Amazon.com takes 40% of the list price. CreateSpace has an eStore that sells all the books it prints. The CreateSpace store takes only 20% of the list price. Entities on the Expanded Distribution Channel (bookstores, libraries, etc) take the standard 60% most bookstores take for traditionally published books.
So, the royalty for the sale of my book (which is priced at $9.99)...
at Amazon.com would be $9.99 - ($2.94 + 40% of $9.99) = $3.05 per book.
at CreateSpace would be $9.99 - ($2.94 + 20% of $9.99) = $5.05 per book.
at a bookstore would be $9.99 - ($2.94 + 60% of $9.99) = $1.05 per book.
I haven't been through the sales portion yet, but it appears that royalties are paid monthly and tracked on your CreateSpace user profile page.
DISTRIBUTION:
I should say first, my understanding of book distribution is pretty thin. I do know that CreateSpace uses Lightning Source to print their books. Lightning Source is a print-on-demand company linked with Ingram, one of the fastest growing distributors in the publishing industry. Ingram is an established book distributor and Lightning Source's relationship with them makes your book available to retailers, bookstores, libraries, academic institutions, wholesalers and distributors....*if you pay for the ProPlan.
Distribution to stores, libraries, etc is only available with the Expanded Distribution Channel. Without the ProPlan, your sales channels are through CreateSpace's eStore and Amazon.com. The expanded distribution channel also gets your book listed in some wholesale catalogues. This is where I get a little lost, so I'm pasting the verbiage from the CreateSpace website below:
Most online retailers, bookstores, and libraries find books through purchasing relationships with large wholesalers. If your book is not listed with these wholesalers, some retailers may not be able to buy your book, even if a customer specifically requests your title. Through the EDC you can make your title available to these wholesalers who in turn make your title available to thousands of online retailers, bookstores, and libraries.
It seems to me, just getting listed in the wholesale catalogue isn't that great. I mean, you're stuck in there with thousands of other books with nothing to set you apart. But, it is good to be available to bookstores through Ingram in case someone asks a bookstore to order your book or if the shops in your town would like to keep a few in stock.
ONE LAST THING...
If you decide to self-publish, whether you use CreateSpace, Lulu, Xlibris, Lightning Source, etc, please get some help with your editing. Nothing says 'unprofessional' more than a book full of typos.
This wraps up my thoughts on self-publishing through CreateSpace. In case you missed the first episode on
WHY, you can find it here, and the second episode on
HOW is here. Have any of you self-published? If so, I'd like to hear more about your experience. Who did you use? What made you decide to go that route?