With KU raising prices and lowering author royalties, many indie authors and supporters of indie books are considering leaving the program. I mentioned on Twitter that this is a great moment for indie authors (and the folks who want to support us) to switch to Kobo and its subscription program, Kobo+, and was met with a question that honestly surprised me: what is Kobo?
So I decided to write an article explaining what Kobo is, how it works, and how you can be part of it. And I asked my Twitter followers for their questions, which led to people asking so many questions that I realized I need to write a series on this subject.
In this first article, we’ll explore:
- What is Kobo?
- My experience with Kobo
- Kobo FAQ
- The pros and cons of publishing via Kobo
- Should you publish with Kobo?
I’m also planning three more articles about Kobo: how to publish on Kobo, how to publish to Kobo through third-party sites (like Draft2Digital), and how to use the Promotions tab within Kobo. If you want to make sure you’re alerted when those articles come out, join the Author Marketing Club newsletter (you may need to pause AdBlock to see the form on mobile devices).
For now, let’s dive into the basics of how this publishing platform works!
What is Kobo?
The first question we need to address is the simplest one: what is Kobo?
Kobo is a Canadian company (owned by Tokyo-based Rakuten) that sells ebooks. Originally, Kobo devices and ebooks were sold through Borders, and they’re now sold through the Kobo website, in various electronics stores, Walmart, and in Canada, at Chapters/Indigo.
Kobo+ is the company’s answer to Kindle Unlimited, a book subscription service available for $9.99 per month (or $12.99 per month if you want access to audiobooks). The big advantage of Kobo+ is that you do not need to publish your books exclusively with Kobo to put them on Kobo+. This can be a massive benefit for authors as it allows you to publish in a variety of places and build more diverse income streams, whereas KU forces you to rely on Amazon for the entirety of your publishing income.
You can publish books directly to Kobo or publish through a site like Draft2Digital and enable Kobo distribution. Personally, I recommend publishing directly through Kobo, as this gives you access to the Kobo Promotions tab (I’ll talk more about that in the next part of the series).
My experience with Kobo
Both my novel and my recent nonfiction release are available through Kobo and have been since their earliest publication date. The publishing process is simple and I find the Kobo Writing Life interface more pleasant to work with than the KDP process.
What isn’t so easy is building an audience on Kobo. As someone whose primary audience is American, I make a fraction of the sales on Kobo that I do on Amazon. The only time this shifts is when I manage to get into one of the Kobo Promotions, which are sales and free days that highlight indie books.
That said, I have gotten more sales on Kobo in the past couple of months than I had since my initial release of Moonshadow’s Guardian, and I expect to see more Kobo+ reads now that the program is available in the US and many readers are looking for KU alternatives due to the recent price change.
Kobo FAQ
One of the biggest challenges Kobo used to face is that it used the .epub format, which wasn’t compatible with Kindle devices for many years. However, in 2021 Amazon shifted towards using .epubs. This means that new Kindle devices are able to read books bought on Kobo.
Kobo can’t send ebooks directly to your Kindle, but you can get books purchased from Kobo onto your Kindle by emailing the files to your device.
As well as the proprietary Kobo ebook readers, Kobo offers reading apps that can be used on desktop or mobile.
Kobo offers a 70% royalty rate on original works listed above a certain price point ($2.99 in the US; the amount varies by region). Original works with lower prices will receive 35% royalties. Public domain works receive 20% royalties.
Every month, Kobo calculates the total revenue from Kobo+ and divides it by the minutes Kobo+ readers spent reading to determine the value of each minute of reading. Kobo+ authors then earn 60% of the income earned from their books based on the minutes read. So if the value of a minute is $0.10, you’ll earn $0.06 for every minute people spend reading your books.
This model is variable based on how many Kobo+ subscribers exist and how much they’re reading, so it can make your income hard to predict. However, this also means that royalty amounts can increase as Kobo+ becomes more popular – and with Kobo+ expanding into new countries, this could make a significant difference in your long-term income.
Unfortunately, Kobo doesn’t list the number of users currently subscribed to Kobo+, so there’s no way to estimate the current royalty range.
Kobo also doesn’t pay authors when their books are read during a member’s free trial. This means new users can theoretically read your entire library for free
Kobo+ reads aren’t listed in your regular Kobo Writing Life dashboard. Instead, you can view these reads in your sales reports. The sales report for each month is published on the first of the following month (so your sales report for March will be available on April first).
Kobo used to only send payments in USD and CAD, but you can now get paid in several currencies: USD, CAD, GBP, EUR, JPY, AUD, NZD, and HKD. If your region’s currency is not supported, you’ll be paid in USD.
The Kobo payout threshold is $50CAD, which can be a major drawback for new authors as it can take a while for you to get that first payment.
Pros and cons of publishing with Kobo
Pros
- There’s no exclusivity clause, so you can publish on Kobo and Kobo+ without taking your books off of the main Amazon market, plus you can add your books to other retailers
- You can apply to be part of free days, sales, and other promotions through the Promotions tab
- Kobo actively works to support indie authors with resources like a blog, podcast, and author services
- Kobo has large audiences in Canada, Japan, and other international markets
- There are a variety of high-quality Kobo ebook readers and reading apps
- Walmart’s ebook market is powered by Kobo, so Kobo books can be sold through Walmart
Cons
- You can’t put your books on KU if you publish through Kobo
- Kobo has a much smaller share of the US market than Amazon; exact numbers are hard to find, but reputable sources state that the market share is around 3%
- The payout threshold is $50 so it can take a while to earn enough to receive your first payment
So, should you publish with Kobo?
Like many decisions in publishing, whether or not you should use Kobo depends on your goals and the existing state of your business and audience. You may also want to factor in your location.
How to make the decision based on your publication status:
If you’re publishing for the first time, you have two choices: you can experiment with KDP Select (the author program that enrolls your books in KU) or go straight to publishing with Kobo. As much as I love Kobo, I recommend that you try publishing through KU first to determine how well your books will do there, as this can make it easier to find a large audience and it’s easier to put your book on more sites later than it is to pull your book from other platforms later on. KU runs on 3-month terms, so you can have your book on it for 3-6 months and then switch to publishing wide if you’re not getting much traction.
If you’re already published in KU but not getting many page reads, I recommend pulling your book(s) out of KU and publishing on Kobo. You may not earn much from Kobo, especially in the beginning, but if you’re only earning a few cents (or even a few dollars) a month from KU you really don’t have much to lose on this front. Plus you’ll gain the opportunity to publish your book on other sites like Draft2Digital.
If KU is a significant part of your income, stick with it. Kobo is a great company, but the truth is that it doesn’t have the same reach as Amazon, especially in the US. While I hope to see that change, and in fact have already seen many people (both authors and readers) say they’re switching to Kobo due to the changes to KU, it will likely be a while before Kobo has a comparative market share.
How to make a decision based on your audience:
If your audience is mostly in the US, sticking with KU might be worthwhile even if you’re not getting many page reads yet. However, I suggest paying close attention to your statistics and to changes happening at both Amazon and Kobo. As Amazon grows less friendly to authors and readers and Kobo expands its reach, it might become more valuable to publish with Kobo.
If your audience is mostly outside the US, and especially if you have large audiences in places like Canada, Japan, and The Netherlands, I recommend publishing with Kobo.
How to make a decision based on your location:
Kobo only offers payments in certain currencies. If you live in a country with a currency not currently compatible with Kobo payments, it may not be worthwhile to publish on Kobo as you might lose money from the exchange rate.
What is Kobo: final thoughts
Kobo is a much smaller company than Amazon, and getting your books seen there/building an income on it can be a serious uphill battle. However, Kobo’s entire business is built around selling books, so the company is always working on new ways to sell books. Moreover, Kobo offers a variety of supports specifically for indie authors.
The other factor to consider is that Amazon is actively alienating readers by raising prices without offering any new features or benefits. With Kindle Unlimited now costing $11.99/month and the base plan of Kobo+ priced at just $7.99/month (prices based on US listings), Kobo is well-positioned to draw in readers fleeing KU.
If you’re interested in switching to Kobo or publishing your first book on Kobo, subscribe to the Author Marketing Club newsletter (you may need to pause AdBlock to see the form on mobile devices) to be notified when the next part of this series comes out!