Draft2Digital Drops Minimum Payment for PayPal & US Direct Deposits

Draft2Digital Drops Minimum Payment for PayPal & US Direct Deposits Self-Pub 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

Nate Hoffelder

View posts by Nate Hoffelder
Nate Hoffelder is the founder and editor of The Digital Reader: He's here to chew bubble gum and fix broken websites, and he is all out of bubble gum. He has been blogging about indie authors since 2010 while learning new tech skills at the drop of a hat. He fixes author sites, and shares what he learns on The Digital Reader's blog. In his spare time, he fosters dogs for A Forever Home, a local rescue group.

9 Comments

  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.

    Reply
  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.

    Reply
    1. Bill Smith8 February, 2017

      No longer true, effective this month Smashwords has no minimum threshold. Also going to monthly payments very soon.

      Check out http://www.smashwords.com/about/beta

      Reply
      1. Bill Smith8 February, 2017

        That is for PayPal payments … don’t know what checking account requirements are.

        Reply
        1. Nate Hoffelder8 February, 2017

          According to Smashwords’ TOS, they still have a minimum threshold of $75.
          https://www.smashwords.com/about/supportfaq#Royalties

          Reply
  3. Bill Smith9 February, 2017

    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?

    Reply
    1. Nate Hoffelder9 February, 2017

      Er, I misunderstood the terms. That $75 threshold applies to paper checks, not Paypal payments.

      Reply
  4. Amodiq17 February, 2017

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

    Reply
  5. AC de Fombelle27 April, 2017

    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

    Reply

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