Old POD revenue models
From MPublishing
Revision as of 13:51, 3 March 2011
Contents |
Setup and manufacturing cost
For selling print-on-demand copies of an item through CreateSpace, there's a one-time fee to purchase an ISBN (from Bowker, the official ISBN agency for the United States). There is also a fixed charge for printing each copy, which covers the cost of printing the cover, and per-page costs for monochrome and color pages. In addition, Amazon charges a delivery fee for mailing copies after printing.
These costs are covered through a combination of a set-up fee and/or the retail price of the volume, set through one of the two options described below.
Interested in the costs? MPublishing pays Bowker $1.75 per ISBN and Amazon publishes its US shipping fees and international shipping fees.
Sale price
There are two options for setting the retail price of each copy.
A. MPublishing sets the price
MPublishing will set the retail price, based on estimated sales, in order to attempt to recover costs involved in setup and administrative overhead. The publishing partner does not receive any revenue from sales, and MPublishing will not attempt to profit from the sales. If MPublishing determines that sales do not offset setup costs, MPublishing may stop setting up new issues for sale with 60 days' notice.
B. Publishing partner sets the price
MPublishing will calculate the cost of manufacturing a single copy and provide this information to the publishing partner, who will then decide the retail price at which they wish to sell copies. The publishing partner may change this price at any time by notifying your contact at MPublishing, who will adjust the price in Amazon.
MPublishing charges a setup fee of $45 per item made available for sale. This fee is subject to change with 60 days' notice. Once a year, MPublishing will calculate the profit made selling items for the publishing partner, minus any setup fees incurred that year. MPublishing will notify the publishing partner of the account balance. If the publishing partner owes MPublishing, MPublishing will produce an invoice; if MPublishing owes the publishing partner (for royalty dividends), MPublishing will inform the publishing partner of the total royalties. The publishing partner invoices MPublishing for this amount, and MPublishing pays this dividend.
