Here are the pros and cons of self publishing on Amazon:

Self publishing on Amazon has its fair share of pros and cons, but unfortunately, this business model has generally become more difficult in recent years. Apart from the downsides mentioned above, you also have to keep in mind that traditional publishers are taking the KDP world by storm, and Amazon itself has 17 imprints which produces print books regularly. With that being said, you'll have to compete with millions of KDP authors, established traditional publishers, and Amazon itself in the KDP market. 

In this article, we will be looking at the pros and cons of Amazon self publishing, the harsh truth about KDP that gurus aren't telling you, and an online business I would recommend over Amazon KDP.

The Harsh Truth About KDP That Gurus Aren’t Telling You

Amazon Kindle Direct Publishing, or simply Amazon KDP, is a self publishing platform that's helped thousands of people all over the world collectively generate millions of dollars ever since it was created.

Because of this, hundreds of coaches, gurus, and course creators are claiming that becoming a self publish author on KDP is the best way to make money online and achieve financial freedom. They make all these promises that Amazon KDP is easy and any aspiring author can make $1,000 to $20,000 on a monthly basis. Here are some examples:

Unfortunately, all these self proclaimed coaches and gurus are simply not painting the entire picture for you. Their claims are either exaggerated, twisted, or simply not true. Self publishing on Amazon is extremely saturated, highly competitive, and is not a good way to attain financial freedom anymore. Being a self published author simply isn't enough to make you quit your job.

There are a few reasons why all these coaches and gurus are making all these promises and telling you what you want to hear:

• They own a course that teaches Amazon KDP and they want you to purchase that course.
• They want to grow a following on YouTube or any other social media platform.
• They're an affiliate of Amazon KDP.

While there are successful authors out there that have a genuine desire to help others become successful on KDP, most of them found success years ago, when KDP was not as competitive and saturated as it is now. As of 2023, there are over 1 million authors and publishers on the KDP platform, and the number of authors that live solely off of writing and publishing books is somewhere around the lower hundreds. You also have to understand that most authors that make $5,000 to $10,000 per month have been writing for a very long time already, even before they became self publishers on KDP.

Amazon KDP is simply not as profitable as it once was. As an indie author, you could still make money by self publishing, but it will take a lot of effort, dedication, and even money to make it work.

Self Publishing on Amazon: Pros and Cons

1. It's easy to self publish

It's easy to self publish on Amazon because the self publishing route is very straightforward process that's easy to follow. In simple terms, all you have to do is:

• Create a book
• Publish your book on the KDP platform
• Advertise your book so it can be seen by Amazon's massive customer base.

While these steps don't include the specifics, you can do a quick Google search and see hundreds of tutorials that teach you how to get started as an independent author on Amazon. Overall, Amazon KDP is a business model that's very easy to start. Technically, you can even make money immediately once you publish your first book.

2. The world is your market

Amazon holds a large portion of all book sales in the world, which is good news for anyone looking to self publish on Amazon. Here are some numbers that back this up:

Not only does Amazon own a huge chunk of all book sales in the world, it also has an established brand and reputation that helps in attracting readers and customers. Whenever a potential buyer browses through your publications, they'll have an added sense of security knowing they're purchasing on the Amazon platform.

3. You can publish both digital and print books

With Amazon, self publishing authors have the option to publish both digital and print books, which opens up more money making opportunities and income streams. You can publish:

• eBooks
• Hardcover books
• Paperback books

Being able to publish both eBooks and print books puts you in a position to effectively market your publications to all kinds of people. More and more readers are beginning to fully embrace eBooks, especially in a world that is rapidly evolving technologically. However, there are still readers that prefer to keep it old-fashioned.

4. There are higher royalties

Unlike traditional book publishing, where you can only make anywhere between 5% to 15% in royalties per book sale, Amazon KDP offers 35% to 70% in royalties. Not only does this translate to higher profit margins, it also allows authors and publishers to focus on quality over quantity, since it eliminates the need to mass produce all kinds of books just to make more money.

For the 35% royalty option, there are pricing requirements depending on the file size of your eBook:

• For eBooks less than 3 MB (Megabytes), it should be priced anywhere between $0.99 and $200.
• For eBooks with a file size of 3 MB to 10 MB, it should be priced anywhere between $1.99 to $200.
• For eBooks greater than 10 MB, it should be priced anywhere between $2.99 to $200.

In order to be eligible for the 70% royalty option, your eBook should be priced anywhere between $2.99 to $9.99.

For paperbacks and hardcovers, royalties are fixed at 60% of your book's price. However, printing costs are deducted from your royalties before they are credited to your account. Here are Amazon's printing costs to help you calculate your royalties.

5. You have the rights to your books

With self publishing, you are simply giving Amazon the rights to distribute copies of your self published book, not the rights to your book itself. Whenever you self publish a book on Amazon, your book will be published as is. Amazon also does not dictate when your book will be published, which means you can publish your book anytime you want.

Working with a traditional publishing house, on the other hand, means giving up full ownership of the rights to your book. This means they can do anything they want with your book, such as changing the content inside of your book, repurposing the design, adding or removing sections, and deciding when to publish the book. Overall, traditional publishing is simply transferring the ownership of your book to the publisher and giving them full creative control, which can be discouraging to anyone looking to publish their first book. 

6. Inventory won't be a problem

As a self publisher, Amazon takes of care of inventory and order fulfillment for you. When a customer orders a hardcover or paperback book from you, Amazon takes of all the logistics, such as printing and shipping. You won't have to worry about storing any of your books because Amazon prints book on-demand. 

The same can be said for eBooks. Your eBooks are digitally stores on Amazon's servers, so you don't have to. Amazon charges eBooks depending on their file size in order to maintain the servers and keep them up and running. If you avail of the 70% royalty option, you will be charged $0.15 per megabyte (MB). If you avail of the 35% royalty option, storage fees will be waived.

7. You can use Amazon's established brand reputation to your advantage.

Amazon's online reputation precedes them, especially since they're one of the biggest eCommerce platforms in the world. Studies show that 87% of buyers prefer Amazon over any other eCommerce website. 56% also claim that they look through Amazon first before going to other platforms. 

As a self-publisher, you can use the power of Amazon's stellar brand name to your advantage. Selling through Amazon allows you to market your books internationally, since Amazon is a global eCommerce platform that's used by hundreds of millions of customers. You also have access to that kind of market, which then translates directly to more potential customers that you can reach out to.

8. Access to Amazon KDP Select

Amazon KDP Select, or simply Kindle Select, is a free service that allows Kindle users to read as many books as they want for 90 days or 3 months. As a self published author, this service gives you access to a variety of tools that are extremely helpful in helping you sell your books. Here are some examples:

• Kindle Create: Kindle Create is a powerful formatting tool by Amazon that lets authors and publishers turn their manuscripts into eBooks or print books. While it can take some time to get used to, there are thousands of tutorials online to help you get started.
• Kindle Unlimited: Kindle Unlimited is a feature that gives readers access to million of eBooks and thousand of audiobooks, magazines, and comics. As a KDP author, your books are automatically enlisted under Kindle Unlimited, where you get paid for each page that is read.
• Prime Reading: Prime Reading is a relatively new service by Amazon that gives Prime users access to Kindle's library. For authors, this means approximately 170 million prime users have access to your books, and you get paid for each page that is read.

Other tools you can use outside of KDP Select:

• Amazon Expanded Distribution: Amazon Expanded Distribution is a wide distribution service by Amazon that allows you to enlist your paperback books to be distributed to bookstores, libraries, academic institutions, and many others. This helps you reach more potential readers both in and out of Amazon.
• Kindle Countdown Deals: Kindle Countdown Deals allows authors to sell their books at a discounted price, while retaining their original royalty percentage. 

9. You can outsource everything

As a KDP author, you have the option to outsource all the work needed to create a book, which means you won't have to do as much. Outsourcing is the process of hiring someone to work for you, typically in a remote setup. Here are the costs of outsourcing the creation of your book:

• Writer: $0.01 to $2 per word
• Proofreader: $0.15 per word
• Copy editor: $0.21 per word
• Book cover design: $200 to $1,000

If you plan to hire one person to do everything for you, expect to pay anywhere between $500 to $2,000. Some common outsourcing websites include OnlineJobs PH, Fiverr, or Upwork. 

10. It can become passive

Self publishing is a business model that can become passive in the long run. As long as you publish enough books that generate a substantial amount of income on a regular basis, KDP can become a lucrative source of passive income. However, it's important to understand that KDP is not a get rich quick scheme that's guaranteed to become passive within a few months. In fact, there's no guarantee that your KDP business will become passive at all.

As a beginner, you can expect to make anywhere between $50 to $100 during the first six months. It will take a lot of work before you even break the $500 mark. 

Once you understand the inner workings of the KDP industry and have already published a couple of profitable books, you can make anywhere between $1,000 to $5,000 within a few years' time. This is with the assumption that you have dedicated a lot of time and effort into making your KDP business work and did not just sit around doing nothing.

Eventually, if you become an established KDP author with multiple best selling books and titles, you can expect to make anywhere between $5,000 to $20,000 on a monthly basis. Once you reach this level, you can slowly shift your KDP business into something more passive.

11. Amazon takes care of customer service for you

One of the perks you get when you self publish your books on Amazon is not having to worry about handling customer service, because Amazon takes care of customer service for you. This includes:

• Receiving customer complaints
• Issuing out refunds
• Managing product returns

This allows you to focus more on creating, designing, and publishing your book since it eliminates the need to attend to customer queries and concerns.

1. Finding a unique and profitable niche is nearly impossible

Amazon KDP was launched in 2009, and since then, thousand of authors have written million of books across almost every genre known to man. To further help you understand, here are some numbers to show you how saturated KDP already is:

With that being said, finding a unique and profitable niche is easier said than done. Not only will you have to conduct extensive niche research and analysis, you'll also have to find a way to stand out amongst millions of other books on Amazon.

2. The market is extremely competitive

As of 2023, there are at least 1 million authors and publishers on KDP. While this number might not sound too overwhelming, reality sets in quickly once you see the ratio of publishers on the platform and the number of eBooks Amazon publishes through KDP every year. You also have to keep in mind that there 1 million authors on KDP alone, which means you also have to consider that there are thousands of traditional publishers that sell their own books on the Amazon marketplace.

Amazon reportedly pays over $520 million in royalties to approximately 1 million KDP authors every year. Studies also show that Amazon releases over 1.4 million eBooks through KDP annually. By taking a closer look, we begin to realize that the author to book ratio on KDP is a measly 1 to 1.4 only. Not only does this indicate just how saturated the KDP market really is, it also shows the reality that thousands of authors that publish on KDP are struggling to make money. 

To make matters worse, you'll have to compete with Amazon itself, as they have 17 imprints that produce at least 1,000 books every year.

3. Book marketing costs can quickly accumulate and eat up your profits

On average, publishers pay $0.81 every time their eBook ads are clicked. You can spend as low as $5 on your ads, but that's not enough for your books to gain significant exposure on the market. Most authors allocate anywhere between $100 to $300 per day for book marketing and advertising. Bigger and more established authors allocate over $1,000 to $5,000 to aggressively market their books. 

Unfortunately, despite Amazon's huge customer base, market saturation and extreme competition will inevitably cause your marketing to eat up your hard-earned money, if you make any money in the first place. As discouraging as it may seem, you may have to put up your own money just to advertise your books on Amazon, even though there's absolutely no guarantee that anyone will click on your book, let alone read it.

4. You're more than just an author

Being a KDP author doesn't just mean writing your own books and publishing them. As a KDP author, you're in charge of formatting, proofreading, editing, designing, and marketing your own book. This entails weeks, or even months of working for hours on end. Just like any other business, you need to put in a lot of work to become successful. Sadly, even if you put it all the work needed, there's still no guarantee that your hard work will bear fruit in the end.

You can argue that outsourcing is an option you can take so you won't have to do everything, but you also have to understand that not everyone has money to hire someone to write, edit, or design for them. Outsourcing can be expensive for most people in today's economy, and most people enter the KDP market to make money, not spend it.

5. Building a relationship with your customers can be difficult

Building a relationship with your customers isn't easy because Amazon was designed to be a marketplace first before anything else. It doesn't have social media features where you can talk and interact with your clients at any time. The closest thing you have to being able to interact with your clients is by including a "Thank You" note every time a customer orders a print book from your store, but even that is not an effective way to reach out to your customers since there is no way for them to respond to your attempt at interacting with them.

The reason for this is that Amazon takes care of customer service for you. They handle all kinds of feedback, such as complaints, returns, and refunds. This might sound like a good thing since it allows you to focus more on your book without allocating a portion of your time tending to clients. In reality, however, this is a double edged sword since it forces you to rely on Amazon to handle customer concerns and feedback instead of being able to provide personalized customer service to each client.

6. You're at the mercy of Amazon's system

Self publishing on Amazon means following their rules, abiding by their regulations, and complying with whatever changes occur in their system. This means submitting to their terms, even if it leads to losing out on some revenue, facing customer service issues, or worse, having your account completely shut down for no reason at all.

Here are some complaints most people have against the Amazon KDP platform:

You can appeal against any changes or adjustments made to your account by Amazon, especially if you feel that they are unfair. Unfortunately, this is all you can do because Amazon will still have the final say when it comes to any appeals or complaints against them.

7. Royalties are fixed

Amazon's royalty packages look appealing at first, especially since it offers much more in comparison to traditional publishing royalties. As discussed earlier in this article, traditional publishers typically pay anywhere between 5% to 15% in royalties, while Amazon KDP offers 35% and 70% royalty packages. For print books, such as hardcovers and paperbacks, the royalty percentage is fixed at 60%.

Self publishing on Amazon also means abiding by their pricing requirements, no matter the circumstance. For instance, if you avail of the 70% royalty package but feel that your book deserves to be priced at $50, you will have no other option but to go for the 35% royalty package instead, which immediately slashes your royalty by 50%.

On the other hand, even if you put a lot of effort into your book and feel that it deserves a price tag of $250, you have no other choice but to follow Amazon's listing requirement and price your book at $200 maximum. Simply put, Amazon's royalties are simply designed to help Amazon make money, not you.

8. You need lots of positive reviews to gain exposure

As frustrating as it is, not being able to interact with your customers means your entire reputation on KPD relies solely on the number of positive reviews you have. Research indicates that 95% of customers read the reviews of a product before making a purchase. Amazon's algorithm favors authors that have lots of positive reviews over those that have little to none. Unfortunately, getting positive reviews is easier said than done because of these reasons:

• Lack of organic reviews: Studies show that only 5% to 10% of consumers actually take the time to leave reviews on a product they purchase. 
• Fake reviews: Back in 2020, 42% of all reviews on Amazon were proven to be fake. There have been reports of KDP authors offering incentives, products or discounts in exchange for positive reviews. While this practice is obviously unethical and illegal, lots of authors get away with it. On the flip side, if authors can pay for positive reviews, they can also pay for negative reviews to be left on other author's pages. 
• Minimal public trust: According to an analysis conducted by Review42, only 17% of consumers in America actually trust reviews posted on Amazon, whether they are positive or negative.

At the end of the day, your best bet is to publish a book that will leave a lasting impact on your readers, which will then move them to leave a genuine, positive review.

9. Outsourcing is expensive

As mentioned above, outsourcing is an option you could go for if you don't have time to create a book from scratch and market it to the public. But in reality, most aspiring entrepreneurs don't have the money to outsource employees to do the work for them. Outsourcing will cost you anywhere between $500 to $2,000 if your goal is to produce a high-quality book that will attract customers. If you hire employees that offer cheap labor, you will inevitably be putting the quality of your book at risk, which could negatively affect sales and revenue in the long run.

10. There will be delays in payments

KDP releases payments every 60 days, which means you won't be able to receive your money immediately at the end of the month. Instead, you will have to wait 2 months before the money makes it to your account. For instance, if you made $500 dollars in March, you will have to wait until May before you get that $500.

To add insult to injury, Amazon has a payment threshold of $100 that you have to meet before they release your earnings. If you fail to make $100 in a single month, Amazon will hold all your money until you actually earn $100, which isn't particularly beneficial to KDP authors who are just starting out.

What is Self Publishing on Amazon?

Self publishing on Amazon is the process of publishing your own books through the use of Kindle Direct Publishing, also known as KDP. Unlike traditional publishing, self publishing allows you to publish anything you want at any given time. You also have the potential to earn more money since KDP offers higher royalty rates compared to traditional publishers.

How much does it cost to self publish on Amazon?

Generally, it costs nothing to self publish on Amazon. You can publish a book for completely free, but you need to invest at least $50 to $100 in ads if you want your book to gain exposure. Selling print books will also require you to pay for an ISBN, which typically costs anywhere between $20 to $30. Overall, self publishing on Amazon will cost you anywhere between $20 to $150.

If you decide to outsource the creation of your book, you will need at least $500, which includes writing, proofreading, editing, and designing your book. If you plan to hire separate employees for each task, here's a quick overview of how much they might cost:

• Writer: $0.01 to $2 per word
• Proofreader: $0.15 per word
• Copy editor: $0.21 per word
• Book cover design: $200 to $1,000

The cheapest way to publish a book is to do everything yourself and not spend any money on marketing or advertising. This way, you'll only be paying for "delivery" or the storage fees that Amazon charges to keep their servers running. Unfortunately, while this route might be the cheapest, it's also the least profitable one. Without marketing and advertising, the chances of people seeing your books are very slim.

Keep in mind that these figures are simply rough estimates to help you have an idea on how much it costs to self publish on Amazon. 

Is self publishing on Amazon legit?

Self publishing on Amazon is legit. It's a proven business model that hundreds of thousands of aspiring authors, publishers, and entrepreneurs have used. Millions of dollars have been made using this business model, and thousands of authors make thousands of dollars on a monthly basis. To further solidify this claim, self publishing on Amazon is a business model by Amazon itself, which is arguably one of the biggest eCommerce platforms on the entire planet, if not the biggest.

Is it profitable to self publish on Amazon?

It's still profitable to self publish on Amazon, but it's not as easy as you might think. The idea of making thousands of dollars on a monthly basis entices most entrepreneurs today, but they refuse to put in the time, effort, and dedication needed. KDP is not a get-rich-quick scheme that's guaranteed to make you money within the first few months. Thousands of authors had to wait a full year before making their first $100.

As mentioned earlier, Amazon KDP is also a business model that's competitive and saturated. Not only will it be difficult to find a unique and profitable niche, you will also have to compete against hundreds of thousands of authors, traditional publishers who are entering the KDP market, and Amazon's 17 imprints that publish print books regularly. Self publishing on Amazon can be worth it, but there's absolutely no guarantee that you will make money and be successful.

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Conclusion: Why Local Lead Generation Is Better Than Self Publishing on Amazon

An online business I would personally recommend over self publishing on Amazon is local lead generation. Unlike self publishing on Amazon, local lead generation does not suffer from market saturation because you can potentially explore up to a hundred niches in every city. You also won't have to worry about competing with thousands of people because local lead generation requires a certain set of skills and expertise to become profitable, making it a business model that cannot be easily duplicated.

Here's how local lead generation works:

The best part about local lead generation is it has the potential to become completely passive in the long run. I have websites from 2014 that still generate over $2,000 on a monthly basis, and I barely even visit them.

Looking for a way to attain financial freedom and be able to spend more time with family and friends? Check out local lead generation.