There has been a lot of confusion about the author royalty percentage Amazon will pay to writers who receive a publishing contract under the new Kindle Scout program. I suppose that’s par for the course with any new program, but as money is important to starving authors (and the rest of us) who want to buy groceries and an occasional beer, I did some checking.

Here’s what I found out.  In Amazon’s Submission and Publishing Agreement, the Author Royalty is stated as 50% of eBook sales (25% for audiobook, 20% eBook translation), net revenue. It’s the term “net revenue” that has been the source of confusion. In fact, I’ve read on numerous blogs recently that this “net revenue” clause will mean the royalty payment to an author will actually be in the 25% – 35% range, with Amazon doing the math.

When I queried Amazon on this issue, their response was as follows: “With regards to the 50% eBook royalty rate, the 50% is exactly the way KDP (Kindle Direct Publishing) calculates royalties. It’s 50% of sales price. The only things we deduct are electronic delivery costs, and any returns from customers or any bad transactions by customers (who use bad credit cards, etc.) – again the exact deductions KDP makes.”

So if you’re already publishing on KDP, the only Kindle Scout royalty difference will be that you will receive 50% vs. 70% of net revenue, as usual. Fair enough. No hidden pitfalls there.

Next question: Is being a Kindle Scout author worth it? Although I’m not advising anyone to enter his or her work in the Scout program, I’m figuring it is for me. With Amazon’s potential promotion behind an eBook, 50% of increased sales might work out well. I submitted my latest thriller, L.A. Sniper, to the Scout program a week ago. Since then L.A. Sniper has been in the “Hot and Trending” category, and although I’m not exactly sure what that means, I guess it’s better than being “new.”

Visit the site and see what you think. You might find a new author you like, and maybe get a free eBook as well.

Have you checked out the Kindle Scout site yet? Find any authors you like? If you’re a writer, have you submitted anything, and if so, what do you think? Please leave a comment (click here) and join the conversation!