Smashwords Moves To Agency Model

Self-publishing online community Smashwords has moved to an agency pricing model for eBooks. This means that authors and publishers that use the site to publish eBooks can set their own retail prices for their titles. This also means an increase in royalties for authors, who will receive 60% of the retail price.

Founder Mark Coker explained in an e-mail: “We’ve renegotiated our ebook distribution agreements with Barnes & Noble, Sony and Kobo.  Effective yesterday, our 10,000+ Smashwords authors and publishers now determine their ebook prices at retail.  No more discounting.  The move also allows us to increase the royalty rates we pay authors and publishers to 60%retail price across the board.”

The agency model has been popularly adopted by major publishing houses in the U.S. and is beginning to be adopted in the UK. What do you think of the agency pricing model?

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