Amazon this morning announced that it has set up a $6 million annual fund dedicated to independent authors and publishers. Dubbed KDP Select, the fund aims to let indie authors and publishers “make money in a whole new way”.
Here’s how it works: if a KDP author or publisher chooses to make any of their books exclusive to the Kindle Store for at least 90 days, those books are eligible to be included in the Kindle Owners’ Lending Library and can earn a share of the KDP Select fund.
The Kindle Owners’ Lending Library is a collection of books that Amazon Prime members who own a kindle can borrow once a month, with no due dates.
Amazon says it expects the fund to be at least $6 million for all of 2012, but has also already allocated $500,000 for December 2011 (the new option is available starting today).
Under the terms of the program, independent authors and publishers can enroll anything from a single, self-published book or their entire catalog (if applicable).
From the press release:
The monthly royalty payment for each KDP Select book is based on that book’s share of the total number of borrows of all participating KDP books in the Kindle Owners’ Lending Library.
For example, if total borrows of all participating KDP Select books are 100,000 in December and an author’s book was borrowed 1,500 times, they will earn $7,500 in additional royalties from KDP Select in December.
Enrolled titles will remain available for sale to any customer in the Kindle Store and authors will continue to earn their regular royalties on those sales, Amazon adds.