freemium

The Strategic Use of Book Giveaways and How They Can Increase Earnings Potential

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This post by Jane Friedman originally appeared on her site on 1/30/15.

Over the last few months, I’ve observed a lot of chatter regarding the use of giveaways, especially for indie author book marketing and promotion. A summary of the most recent conversation can be found over at Porter Anderson’s post, ‘Who Decided Our Worth?’ Do Free Books Give Away Authors’ Value?

So, do free books hurt authors (or publishers, for that matter)? The short answer is no. For the long answer, keep reading.

 

What’s Your Funnel?

This is the key question that every strategic author needs to ask. The funnel is the path that readers take from becoming aware of you to becoming a fan.

Giveaways (or freebies) are popular for good reason; they’re a classic, frictionless way to make people aware of your work. Just about every industry has some way of using “free” to their advantage, particularly game, software, and app developers. If you can get a sufficient number of people in the door, and they like your stuff, you can sell them other things once you have some kind of trust or relationship in place.

If you’ve seen the famous Alec Baldwin speech in Glengarry Glen Ross—it’s a favorite of mine—it’s the same idea being expressed. A-I-D-A. First, get people’s attention—whether through an ad, a freebie, traditional media coverage, whatever. That creates interest. And if all goes well, you have desire and action to make a purchase later.

I don’t find it useful to discuss (or demonize) giveaways in the abstract, because unless we can tie it to a particular strategy for a particular author at a particular time, it’s impossible to evaluate it properly. If the giveaway leads to paying fans down the road, it’s smart. If the giveaway leads to no further action, then it should be reconsidered.

 

Read the full post on Jane Friedman’s site.

 

‘Who Decided Our Worth?’ Do Free Books Give Away Authors’ Value?

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This post by Porter Anderson originally appeared on Thought Catalog on 1/28/15.

‘There’s Something Badly Wrong’

For those following the industry! the industry! in its digital melodrama, tossing books to the crowd free is not new.

But the question of whether today’s plethora of free offers may devalue books and/or authors in readers’ minds is not going away as easily as some folks wish it would.

The London-based author Roz Morris (both traditionally and self- published) became concerned enough about the issue this week to write Free book giveaways – when do they work? When don’t they? In it, she writes:

I’ll admit that I worry we give away our work too easily. If we create a culture where a book costs less than a sheet of gift-wrap and a greetings card, there’s something badly wrong. An ebook may not have material form, but it does give you more time and experience than something you glance at and throw away. And tellingly, the people who get cross with me for speaking out are the ones who say they refuse to spend more than a couple of dollars on a book, or berate me for not putting my books into Kindle Unlimited.

Indeed, the question of her headline — when do free books work? — is not the interesting part.

 

Read the full post on Thought Catalog.

 

Breaking Free – What Happened When I Left KDP Select

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This post by Nick Stephenson originally appeared on his site on 6/6/14.

“KDP Select is evil”. “Free promotions are pointless”. “Nick, you’re an idiot”. These are things I hear on a daily basis, the latter usually being something I say to myself when I’m looking in the mirror. As for the first two, I talk to a lot of authors who have a strong opinion on the relative merits of signing up for 90 days of exclusivity with Amazon, and the words “shackled” and “dungeon” come up a lot. It’s the same for free days – half of authors think they’re a God-send, the other half would rather cut off their own limbs with a rusty spatula than offer their work gratis. And that’s cool, I don’t have anything against people having wildly different opinions – and there are plenty of authors making a decent income without touching free promotions, and there are plenty who swear by them. But I like to look at the cold, hard numbers before coming to a conclusion, as everybody’s mileage seems to vary.

The two main strategies for free books I see most often are:

1. A variety of titles signed up to KDP Select, with rotating free promotions on each book. This is pretty easy to do with the 5 free days you get to play with under the KDP Select contract.

2.Titles NOT in KDP select, and up on other vendors, with the first book in the series permanently free. This is also pretty easy to do.

There are pros and cons for both approaches, but last month was the first time I’d tried option number (2). I’ve had a bunch of emails and comments asking for me to report back on the results, so here’s the skinny:

Income Report: All Books in KDP Select

 

Click here to read the full post, which includes sales graphs and detailed analysis, on Nick Stephenson’s site.

 

Is Kindle Countdown the new Free? Keeping Books Visible in 2014

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This post by M. Louisa Locke originally appeared on her blog on 2/25/14.

For the past year there has been a good deal of hand-wringing over the question of KDP Select free promotions. Have they de-valued fiction, do they attract negative reviews, do they even work anymore? As anyone who regularly reads my blog posts knows, I have been a strong proponent of offering ebooks free for promotional purposes, and free promotions have been very good to me in terms of increasing my reviews and keeping my books visible and selling.

However, I also believe one of the distinct advantages we have as indie authors is our ability to use our own sales data to respond innovatively to changes in the marketing environment. As a result, in the past year I followed a number of different strategies to keep the books in my Victorian San Francisco Mystery series visible, including beginning to experiment with the new promotional tool, the Kindle Countdown, that has been introduced as part of KDP Select.

In this post I am going to:

A. Review how successful the strategies I pursued last year were for selling books in 2013.

B. Address whether or not Free is failing as a strategy.

C. Compare the Kindle Countdown promotions to Free promotions.

D. Assess whether or not Kindle Countdown promotions can replace free-book promotions as my primary promotional strategy for 2014.

 

Click here to read the full post on M. Louisa Locke’s blog.

 

Playing with Permafree Books – The Results

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This post by Nick Stephenson originally appeared on his site on 1/9/14.

I’ve been experimenting with a permafree book over the last few weeks – admittedly, I’m a little late to the game, but with so many indie authors using this approach, I figured it was time to dip my toes in the water. I chose my shorter title, “Paydown” (a 95 page novella) as the guinea pig for this little experiment. The book has been well received, with a 4.2* rating on Amazon over 15 reviews at the time the title first went free. A few weeks later, reviews are still good, averaging 4.1* over 28 reviews. But I’m far more interested in measuring the ROI, so here’s the breakdown for y’all:

Price of Paydown prior to permafree = $0.99c
Average daily revenue for Paydown prior to permafree = $2.20
Average daily unit sales for Paydown prior to permafree = 6

Granted, I only had the book up for sale for 2 weeks before going free, but that gives you a rough idea. Essentially, for every day the book is free, I’m losing $2.20 off the bat (I figured I could live with that). So how did jumping on the permafreebie bandwagon help sales across my other titles? Here’s a lovely graph:

 

Click here to read the full post, which includes a breakdown of the sales figures, detailed analysis, and conclusions, on Nick Stephenson’s site.