Draft2Digital Drops Minimum Payment for PayPal & US Direct Deposits

eBook distributor Draft2Digital sent its clients an email this morning with the news that it now offers automatic monthly royalty payments:

We are excited and proud to announce that there will no longer be a minimum payment threshold for PayPal or US Direct Deposit payments from Draft2Digital!

This means that if you are using either of these payment methods, you will receive any funds due to you on the very next payment period, each month.

Like many distributors, D2D had previously set a minimum threshold for royalty payments, and that meant that authors with less popular books may go months, or even a year or more, without getting paid.

That policy might not have made authors happy but it did reduce costs. Fortunately, it is less common than it used to be. Amazon, for example, dropped the minimum payout requirement from KDP in December 2013 and now pays authors by EFT on a monthly basis.

Coincidentally, have you considered what distributors are saying when they change payment terms like this? Or when Pronoun increased its royalty rate from 100% net to "burn, money, burn"?

D2D and Pronoun are competing fiercely for authors' business, and that tells us that they don't think this segment of the industry is growing anymore. D2D and Pronoun are trying to recruit authors away from competitors

D2D and Pronoun are trying to recruit authors away from competitors by offering better terms because they don't think new authors are entering the industry at the same rate as before.

Do you think they're right?

image by aronbaker2

About Nate Hoffelder (10620 Articles)
Nate Hoffelder is the founder and editor of The Digital Reader:"I've been into reading ebooks since forever, but I only got my first ereader in July 2007. Everything quickly spiraled out of control from there. Before I started this blog in January 2010 I covered ebooks, ebook readers, and digital publishing for about 2 years as a part of MobileRead Forums. It's a great community, and being a member is a joy. But I thought I could make something out of how I covered the news for MobileRead, so I started this blog."

9 Comments on Draft2Digital Drops Minimum Payment for PayPal & US Direct Deposits

  1. Draft2Digital has also been hit by no longer being able to offer CreateSpace distribution. Authors are having to take down their CreateSpace titles listed through D2D and re-list them them directly with CreateSpace or via the KDP-CreateSpace option in the KDP dashboard.

  2. Smashwords is still holding out with the ridiculous $75 threshold for those of us unable or unwilling to touch Paypal.

    With Pronoun only offering Paypal, this means D2D is probably in the stronger position as this plays out.

  3. From http://www.smashwords.com/about/beta:

    “January 22, 2017 – Quarterly payments went out Friday. Starting this pay period we eliminated the prior $10.00 payment thresholds for PayPal which means we sent out payments as low as a penny. We made this change ahead of our other big news for February – our move to monthly payments as previewed in my year in review post a few weeks ago. We hope you enjoy our faster payments!”

    Apparently the TOS is not updated yet?

  4. how some one in Nigeria will get pay? because this paypal is not working in nigeria.

  5. Hi @Amodiq! AC from StreetLib here. We have offices in the US and are offering payment (monthly with no threshold) via Payoneer, would that be an option working for you? We have been experimenting with Payoneer and proposing it only to US publishers for now but if it can be a way for you to have better publishing conditions, we’d be happy to work with you to see if we can set this up for you! Don’t hesitate to contact me by answering back to this comment or directly via email to acdefombelle AT streetlib DOT com

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