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
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