I think this discussion has commuted into something quite interesting.
1) Most people are happy for Amazon to take 90% of royalties so long as their net result ends up higher than they would otherwise of gained on a level playing field.
90% is a bit much. Most of the figures I've seen are closer to 50%
By the way, back in the mid-90's I worked for a fairly large home improvements company which spent about 40% of turnover on ads. The rest was wages and other incidental expenses. At least indies don't face those costs as well.
2) Many authors are beginning to see themselves as business people. I just hope they have, or can learn, business practices as well and as quickly as they can write. Certainly before they run out of money.
Like it or not, an indie author IS running a business. The good thing is, you can be a roadside flower stall selling blooms you picked from your own garden, or a nationwide retailer with thousands of stores... along with the far greater expenses that entails. There's a lot of freedom
3) People can see the benefits of Amazon, but cannot see, or don't believe those same benefits can be achieved in the wider marketplace.
I've been doing this for over 20 years. Since 2011, I've only had one three month period where half my work (6 books at the time) was exclusive to KU. The rest of that time I've been wide, because that's what I believe in.
I still remember when people treated Myspace like it was going to be around forever. Also the Soviet Union.
4) Everything is perspective. Many here are [or appear to be] subject to success or failure within Amazon. Going wide isn't an option, or they've tried and failed with item 3. Reasons for failure? Unknown, but possibly lack of understanding of item 2, but probably more a case of item 3.
Wide is hard, especially if you flip-flop between being in KU and not. Wide is also a better choice if you have visibility outside Amazon - a blog, website, a newsletter with thousands of readers... anything that can drive traffic. If you're unknown outside the Amazon ecosystem, then KU is probably a better choice.
5) Everyone here hopes to emulate the success of some of the others on here.
Doesn't apply to me. I have my own goals, my own to-do list, my own strategy. I love being a full-time author, but I'm not a big spender and I take pleasure in making what I do earn go a long way.
Have you ever played a computer game where you grind away, slowly making progress, until eventually you own everything and there's nothing left to do? For me, the grinding and slow steady progress is the fun part, not the own everything and bored part.
Advertising is a very expensive game. If you get it right, you win. If you get it wrong, you're generally out of pocket. Like all speculation your investment can go down as well as up. All bets placed at your own risk and all that...
As a footnote to this I really admire the determination of many people to make AMS work for them. I love to hear the success stories. Just keep an eye on the end goal.
Cobbah
I strongly disagree about advertising being expensive. I'm not just being argumentative, I genuinely think that's the wrong way to look at it.
When I get a Bookbub it costs me around US$700. To many, that's hugely 'expensive'. But it isn't, it's like having a machine that returns $2 every time you insert $1. How much money would you shove into that machine?
I've had three bookbubs in the past 12 months, and each time I've netted approximately US$2000-$3000 in total over the subsequent weeks, above and beyond my long-term average royalties. In other words, directly attributable to the immediate sales boost AND the long-term increase in visibility. I'd spend $700 on a bookbub every day if I could, and others are spending money on AMS ads because they know they can achieve similar results.
They're not gambling or risking money, they're paying for a service (AMS) which gives them a measurable result. If their ads stop working they know immediately, not after they've spent, say, $45000.
