Kobo Plus payments are paid out from the pool of revenue earned from Kobo Plus subscribers. The payment rate for Kobo Writing Life authors is 60%.
The payout is based on a couple of factors. First, we take Minutes Consumed, which is the combined number of minutes read by paying subscribers in a given month. This is then used to calculate the value of minutes consumed.
Value per Minute Consumed = Monthly Kobo Plus Revenue / Minutes Consumed
Next, this value is used to calculate the payment that the author receives, based on the number of minutes that have been consumed for a specific title.
Kobo Plus Payments = Value per Minute Consumed X Minutes Consumed X 60%
Let's look at an example:
Total Subscribers: 25
Monthly Kobo Plus Revenue: $206.25
Book A: Minutes Consumed: 9,000
Book B: Minutes Consumed: 16,000
Value per Minute Consumed: $206.25 / (9,000 + 16,000) = $0.00825
Kobo Plus Payments, Book A: (9,000 X $0.00825) X 60% = $44.55
Kobo Plus Payments, Book B: (16,000 X $0.00825) X 60% = $79.20