From the AuthorsGuild article:
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A standard deep discount clause looks something like this: “On copies of the Work sold by the Publisher at a discount of greater than 55% from the publisher’s retail price through channels outside of ordinary retail trade channels, the author will be paid a royalty of 15% of the Publisher’s net proceeds.”
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Originally Posted by fjtorres
That is is how Amazon, Costco, B&N, etc can offer 40-50% discounts on books. No, they are not selling below cost (as the DOJ confirmed) but rather getting discounts that *boost* the publisher's take take so that the discount comes out of the author's hide. Generally, those deals (with Amazon, at least) include no returns clauses so the publisher's take is free and clear.
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Originally Posted by artifact
Am I correct in assuming that the Kobo super coupons fall under these discounts and could be hurting authors in the end? Or since the BPH doesn't do coupons the little guys aren't so bad and the authors aren't (as) shafted? I've always had concerns about this.
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I don't know about Costco, but how could selling a book through Amazon, B&N or Kobo be considered "outside of ordinary retail trade channels"?