So you've opted in to the KWL Promotions Tab beta program. Cool! We want to make sure you know how the cost breakdown works - remember that by submitting to these promos, you are agreeing to a flat fee or a reduction to your standard royalties as outlined in our KWL Terms & Conditions. Here's how it works:
Percentage Sale by Promo Code: How you get paid
If you choose to submit your title to this type of sale, Kobo customers will be able to purchase your title at a discount by using a promo code. As you are supporting this sale you will be paying for this discount, but don't worry you won't have to pay for it up front! During the month following the promotion you will receive an invoice for your monthly sales as usual, and those titles that were purchased during the sale will have a reduced royalty rate in two ways.
First, your royalty will be reduced by the promo code percentage (e.g. 30%). Second, your royalty will be reduced by the participation cost for the sale, which is usually 10%, as outlined in the “dates and cost” section during the submission process.
Buy More Save More Sale: How you get paid
There are a number of Buy More Save More sales that you might participate in. In this example, we are outlining the payment process for a Buy 2 Get 1 Free sale (3 eBooks for the price of 2).
When a customer buys 3 books in this sale (let’s pretend one of these books is yours), the cheapest title is discounted by 100%. As you are supporting this sale you will be paying for this discount, but don't worry you won't have to pay for it up front! During the month following the promotion you will receive an invoice for your monthly sales as usual, and those titles that were purchased during the sale will have a reduced royalty rate. The discount is divided amongst all eBooks purchased at one time, so no one eBook takes the penalty as a "free" book. In this case, because the offer is Buy 2 get 1 Free, each eBook purchased will have their royalty reduced by 33%. For each book purchased during the sale, there will also be an extra 10% participation reduction, as outlined in the “dates and cost” section during the submission process.
The Participation Cost: How it works
In the “dates and cost” section of the promo page for a particular promotion, you will see the dates during which the promotion will take place, as well as the participation cost. There are two participation cost options: A percentage of your royalties, or a flat fee.
The flat fee option is pretty self-explanatory. We send you a link which you can follow to pay for your feature spot.
The percentage option is good for authors, because you only have to pay for your participation in the sale if your title sells. If it does, we shave off 10% of your royalty payment for each sale. So, instead of your usual royalty rate of 70% or 45%, you will receive 60% or 35%.
It is important to note that this royalty shaving takes place for the entire time period of the promotion, and ALL SALES of your title during that time period will be effected, not only those generated by the promotion itself. So, if your title is bumped into a “trending now” list on the Kobo site and a customer finds your title there are buys it, the 10% royalty reduction still applies. Please keep this in mind when applying to our promotions.