This is a recurring theme, as I’ve already posted twice on the subject: Pricing your ebook: Is free the new paid? and How to price your Indie book both deal with this.

I’m writing about it again, as Written Word Media recently published an excellent post on pricing one’s e-book. As Taylor, its author, points out, the answer depends on whether your immediate goal is to reach new readers and generate sales (along, presumably, with reviews), or to make a profit.

Price your e-book at $0.99 to maximize readership

If you’re looking for ways to increase your book/author rank and generate reviews, This graph explains why $0.99 is the best price to reach new readers, with $1.99 not far behind:

From the blog of Nicholas C. Rossis, author of science fiction, the Pearseus epic fantasy series and children's books

Image: Written Word Media

Price your e-book at $4.99 to maximize revenue

Amazon skews the results here by offering authors 35% of the earning for prices under $2.99, and 70% over that. As a result, you should price your e-book at $4.99 to maximize your revenue. You will have far fewer sales, but far more revenue.

From the blog of Nicholas C. Rossis, author of science fiction, the Pearseus epic fantasy series and children's books

Image: Written Word Media

Price your e-book at $2.99 if you want it all

If you’re like me, you’re already looking for the sweet spot where you can both reach new readers and make a small profit out of it. In this case, all you need is the graph below.

From the blog of Nicholas C. Rossis, author of science fiction, the Pearseus epic fantasy series and children's books

Image: Written Word Media

In summation…

The main takeaway from all this is:

  • To reach as many readers as possible, go for $0.99.
  • To have some revenue and acquire new readers, go for $1.99.
  • If you want to maximize revenue more than you want to acquire new readers, price your book at $2.99.
  • If you just want the money, price your book at $4.99