There have been so many negative posts about the Kindle Publishing for Blogs initiative by Amazon, mostly centering around -
- How Amazon gets 70% of the subscription amount.
- How Kindle users would never subscribe to blogs that are free online.
That I’d begun to feel these bloggers were signing up to the program themselves just to overwhelm it and cause it to break down so that Amazon could no longer steal 70% of their subscription fees (never mind that some portion of the 70% gets eaten up by hosting, maintenance, and bandwidth costs).
Surely, given that bloggers and other content creators like newspapers are making so much money online, getting their content on the Kindle would hold little value.
Wait a minute … no … that’s not right.
99% of Bloggers are making next to nothing online.
If we leave out the top 1% of bloggers and the top 10% of affiliate marketers (who’re making a lot), and Google (who’re making perhaps even more) we’re left with the vast majority of people who are adding value to the Internet and, because they are not specialists at monetizing, getting nothing in return.
Amazon is providing a channel for these bloggers to get value back, and they ought to see it and admit it.
Kindle Publishing for Blogs lets you make money – directly
Think about it – almost every online monetization channel is indirect i.e. if you can sell product x; if you can get your readers to visit our site; if you can endorse our product.
Your readers are coming to you for Reason X, and almost every currently existing monetization model depends on you upselling something else or advertising to them. With the KP4B program you can make money off of what attracts users to your blog in the first place i.e. your content.
And you can cut out the middlemen i.e. the advertisers, companies selling products, search engines, marketers, and so forth.
In direct contrast to complaints that Amazon shouldn’t get 70% and complaints about how its not going to work, every blogger is signing up for the program. There are now 4,400 blogs available on the Kindle.
Its because bloggers at some level are beginning to get it. They’re beginning to see how its a win-win situation.
Geek MBA Blog does a simple analysis (just suspend belief and go with it) -
Let’s say that you can attract 5% of the overall Kindle user base, which is 50,000. The total monthly revenue from your blog would be $100,000. Amazon will get $70,000 while you get $30,000. You get paid at a rate of $0.6/user.
Note: He also talks about an established blogger who gets about $0.2/unique user AFTER years of hard work and after monetizing his blog to ridiculous amounts.
Here’s the most important part of the analysis – for every kindle subscriber you can attract and retain, you get 60 cents per user, per month. Without trying to get that user to buy something else.
Kindle Publishing for Blogs lets you focus on Your Core Competency
Note: Consider the model in terms of when there will be tens of millions of Kindle users (whether it be through Kindles or iPhones or Blackberrys). You have to look at it from the long term perspective.
Every Kindle user you get to subscribe to your blog gives you 60 cents a month. You already have the RSS feed so thats zero cost. You already blog and you already have your web presence. You just add a new channel that lets you get paid for your work.
Get a thousand subscribers and that’s $600 a month. You don’t have to worry about finding an affiliate program, getting advertisers, running Google Ads, asking for donations.
You get paid for your core competency i.e. the value of your expertise and/or the value of what you write. And even more importantly –
You can focus on your core competency – writing/creating content you’re passionate about (and hopefully an expert at).
Kindle Publishing for Blogs is a good, good step by Amazon. Sooner or later bloggers are going to realize that letting them get paid for something that they’re currently giving away for free online doesn’t make Amazon the enemy. Discoverability is an entirely different problem and hopefully that gets sorted out soon.