Smashwords, the largest ebook self-publishing and distribution platform for independent authors, has access to a large chunk of sales data for ebooks that the company shares each year. The company examines real sales data each year to extract potential insights about best practices to indie authors and publishers improve their practices to reach more readers and increase sales.
If you are an independently published author or small publisher producing and selling ebooks, you can use the information in Smashwords’ yearly report to improve your strategies. After reading the report, I found four nuggets that I think are worth sharing.
1. The Power of Free has Fallen
In the four years that Smashwords has conducted an annual study of sales figures, free downloads decreased dramatically. In 2012, Smashwords found that free books were downloaded 100 times more than paid books. In 2013, free books were only downloaded 91 times more than paid books. In 2013 that number was down to 39 times, and in 2015, the result was up to 41 times. Blame the glut of free ebooks. However, free is still an option when trying to reach new readers for your books, especially if you have a series.
2. Best Price
Smashwords reports that $3.99 is the sweet spot for fiction ebooks. For the third year in a row, authors sold more units and earned more overall income with books priced at $3.99. However, if you are going to price your ebook below $5.00, then avoid the $1.99 price. Pricing at $2.99 or $.99 is better. You will reach more readers and sell more books.
3. Building Sales
Smashwords found two powerful tools for building sales: preorders and offering the first book in a series free. While not many Smashwords’ authors offered preorders, those that did earned the about three and one-half times more income than those authors who simply put a book up for sale the day of its release. Preorders with an aggressive marketing campaign are a powerful tool for building sales. Smashwords also found that those authors offering the first book in a series free to readers earned 66% more than those who did not. So, if you have a series of books, offer the first one free to hook readers.
4. Building Readership
All the best-selling authors on Smashwords are active on Facebook and Twitter and have a blog. Enough said.
As we move into 2016. Consider how you can begin incorporating free offers, pricing, preorders, and more social media presence into your overall marketing strategies for your ebooks.
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