Author Topic: How are they making money?  (Read 395 times)

idontknowyet

How are they making money?
« on: September 09, 2021, 08:09:13 AM »
I think i hit the  :icon_think:  :shocked:  :n2Str17:  :dizzy stage with amazon.

So i was setting up an ad and came across a recommended bid between $3.23-13.28

This is for books that sell between .99 and 7.99 how in the world are they making a profit? Even on 3 clicks per sale you have to sell multiple books to make a penny.
 
The following users thanked this post: R. C.

Eric Thomson

Re: How are they making money?
« Reply #1 on: September 09, 2021, 08:51:47 AM »
Which "they" do you mean?

If they=Amazon then mucho moola
If they=Publishers willing to pay that much for a bid, then they'd better be best-selling household names
 

idontknowyet

Re: How are they making money?
« Reply #2 on: September 09, 2021, 11:08:13 AM »
Sorry i meant authors. How can any author afford to pay $13 a click?
 

Eric Thomson

Re: How are they making money?
« Reply #3 on: September 09, 2021, 11:16:29 AM »
Sorry i meant authors. How can any author afford to pay $13 a click?
They exist, but on a different plane than you or I. The math is $90,000 in ad costs for $130,000 in revenues per month.
« Last Edit: September 09, 2021, 09:41:48 PM by Eric Thomson »
 
The following users thanked this post: idontknowyet

j tanner

Re: How are they making money?
« Reply #4 on: September 09, 2021, 04:09:21 PM »
1. Bid isn't necessarily what you pay.
2. Amazon recommendations are overpriced.
3. The high bidders aren't selling a single book--they're selling all the readthrough of an entire series.
 
The following users thanked this post: Post-Crisis D, sliderule, R. C., idontknowyet, alyson

DmGuay

Re: How are they making money?
« Reply #5 on: September 09, 2021, 10:18:08 PM »
Many of the experts in the indie ad field say--and amazon has said--that the suggested bids were never meant for low-priced items such as ebooks. The system was designed for all the people selling electronics and other high priced items on Amazon.

So never pay attention to the suggested bids. Ever. They're useless/ inaccurate for authors.
« Last Edit: September 10, 2021, 05:49:47 AM by DmGuay »
 
D.M. Guay | Web site
 
The following users thanked this post: R. C., idontknowyet, alyson, Greg Dragon, Cabbages and kings

Crystal

Re: How are they making money?
« Reply #6 on: September 10, 2021, 05:42:24 AM »
The recommended bid is meaningless. You should ignore it.
 
The following users thanked this post: idontknowyet, alyson, Cindy303

TimothyEllis

  • Forum Owner
  • Administrator
  • Series unlocked
  • ******
  • Posts: 4841
  • Thanked: 1817 times
  • Gender: Male
  • Earth Galaxy core, 2618
    • The Hunter Imperium Universe
Re: How are they making money?
« Reply #7 on: September 10, 2021, 11:23:50 AM »
The recommended bid is meaningless. You should ignore it.

How do you know what is a realistic bid then?
Genres: Space Opera/Fantasy/Cyberpunk, with elements of LitRPG and GameLit, with a touch of the Supernatural. Also Spiritual and Games.


Timothy Ellis Kindle Author page. | Join the Hunter Legacy mailing list | The Hunter Legacy series on Facebook. | Forum Promo Page.
 
The following users thanked this post: idontknowyet

LilyBLily

Re: How are they making money?
« Reply #8 on: September 10, 2021, 12:58:42 PM »
The recommended bid is meaningless. You should ignore it.

How do you know what is a realistic bid then?

Experience.

How much a particular keyword costs is what establishes a realistic bid for that keyword.

Everything else is gamesmanship. You can up the bid in order to attain better ad placement, or you can up the budget to sustain a position, or you can fine tune the keyword bids themselves to be the best ever imagined. (Yeah. Dream on.)





« Last Edit: September 11, 2021, 04:45:30 AM by LilyBLily »
 
The following users thanked this post: idontknowyet

oganalp

Re: How are they making money?
« Reply #9 on: September 11, 2021, 02:56:47 AM »
They usually suggest starting with $0.35 or lower for the US market and launch a new set of keywords (100-150) x 5 per week.

Then round up the better working ones and target phrase instead of broad with the same bid.
 
The following users thanked this post: idontknowyet

Crystal

Re: How are they making money?
« Reply #10 on: September 11, 2021, 09:37:42 AM »
Trial and error.

It's not as simple as "this bid is realistic for this keyword." It depends how relevant your book is, as well. If you have a higher CTR than a similar book with a higher bid, you can still "win" the placement.

Start your bid low. If it isn't spending, keep raising it, a few cents at a time. You'll find the sweet spot. It might not be where you want it, but it will be somewhere.

Some books are a good match with AMS and some aren't.
 
The following users thanked this post: idontknowyet, alyson, Cabbages and kings

LilyBLily

Re: How are they making money?
« Reply #11 on: September 13, 2021, 01:45:40 AM »
An Amazon ad I created a week ago has had a decent number of impressions but almost no clicks. My starting bid was 53 cents although Amazon recommended 74 cents. I've just added a ton of author names into the targeting to see if that makes a difference. Otherwise, I suspect the bids have to go up, and that's a problem. At 6 clicks to get 1 sale--which would be a decent response although not spectacular--that would wipe out any profit on the sale. If it takes 10 clicks, instant loss of several dollars per sale.

 
The following users thanked this post: idontknowyet