If you’re not familiar with ebook distributor Pronoun [editor’s note: now defunct], you’re not alone; they’ve so far been overshadowed in the indie author community by competitors such as Smashwords, Draft2Digital, and BookBaby. But you’re likely to start hearing much more about them in 2017 because of their newly announced royalty rates and terms for Amazon sales, so far unmatched by other ebook distributors.
Pronoun first launched in 2015 as a kind of mash-up of several other companies (Vook, Booklr, and Byliner), and was acquired by Big Five publisher Macmillan in spring 2016. To date, Pronoun charges authors nothing for its distribution service and takes no sales commission. This begs the question of how they earn money and will be sustainable over the long term; they’re backed by Macmillan, and Pronoun director of marketing Justin Renard says, “We work with a number of paid enterprise publishers and count our own digital nonfiction imprint Byliner in our business mix.”
When Macmillan first acquired Pronoun, there was indication of future paid services for authors. In ALLi’s Watchdog Report from May 2016, Pronoun’s marketing rep mentions the possibility that high-performing authors may give up a share of their royalties for more enhanced services—and presumably some of those services will be traditional in nature, given Macmillan’s ownership. Also—of course—there’s nothing to stop Pronoun from changing the terms in the future and taking a cut of sales. One might even consider it an inevitability.
Here’s an overview of the more favorable terms authors can now obtain through Pronoun:
- 70 percent royalty on ebooks priced below $2.99 at Amazon
- 65 percent royalty on ebooks priced above $9.99 at Amazon
- The ability to make an ebook available for free at Amazon at any time, without being exclusive or waiting for price matching
Amazon KDP pays 35 percent royalties on books priced below $2.99 or above $9.99. Both Pronoun and KDP offer 70 percent royalties on books priced between $2.99 and $9.99.
Furthermore, Pronoun sits on over five years’ worth of tracking data for over six million books, recording information like sales ranks, ratings, prices, keywords, and categories; they provide authors with free tools to help them make better decisions on ebook metadata and pricing. Even authors who do not distribute through Pronoun can sign up for an account and add their books to their profile to receive suggestions and sales rank alerts.
Finally, Pronoun has dropped its exclusivity requirements. In the past, an author had to be all in with Pronoun and agree to allow for distribution to all five retailers that Pronoun reaches: Amazon, NOOK, Kobo, Apple iBooks, and Google Play. Now, authors can cherry-pick which retailers they would like Pronoun to service.
Bottom line: Pronoun is going to be very tempting for authors, especially for distribution of new titles and short, promotional works typically sold for 99 cents. However, despite the very juicy carrot it dangles, Pronoun doesn’t yet have the trust of the indie author community, especially since authors don’t see how the current terms are sustainable. One look at a recent KBoards thread reflects the skepticism—and even conspiracy theories—surrounding Pronoun’s business model. We don’t see anything sinister going on; rather, we see a Big Five publisher looking to stake out territory in what it sees as an important and permanent segment of the overall publishing landscape. Pronoun captures more data in working with a large number of authors, and may provide Macmillan (if patient) with an ability to identify up-and-coming authors and offer them traditional publishing partnerships—which isn’t so different from what Amazon does with its own house imprints.
Jane Friedman has spent her entire career working in the publishing industry, with a focus on business reporting and author education. Established in 2015, her newsletter The Bottom Line provides nuanced market intelligence to thousands of authors and industry professionals; in 2023, she was named Publishing Commentator of the Year by Digital Book World.
Jane’s expertise regularly features in major media outlets such as The New York Times, The Atlantic, NPR, The Today Show, Wired, The Guardian, Fox News, and BBC. Her book, The Business of Being a Writer, Second Edition (The University of Chicago Press), is used as a classroom text by many writing and publishing degree programs. She reaches thousands through speaking engagements and workshops at diverse venues worldwide, including NYU’s Advanced Publishing Institute, Frankfurt Book Fair, and numerous MFA programs.
