A group I’m a part of is in the process of assembling a publication directed straight to Kindle, so I found this analysis timely…
The amount of revenue each publisher earns for their Kindle newspaper/magazine is calculated thus:
(Price – delivery costs) x 70%
“Delivery costs?” I hear you cry. This is the wonderful world of electronic publishing: Amazon hasn’t got an army of paperboys popping the newspapers through letterboxes each morning.
It does, however, pay for “free” 3G connections in the souped-up version of the Kindle, and someone has to pay for that data. And that someone is largely (70%) the publishers, particularly those who want to include anything other than plain text in their periodicals.
I’m not sure how applicable it is, as 1) we’re not doing a periodical, and therefore 2) not going to worry much about images. But it deserves revisiting my own analysis of the matter.