Amazon Sales Rank – An Insider’s Guide

This is an excerpt from my web site – www.DogEarPublishing.net
- and our articles section

This page is a regularly updated, continual discussion of my most frequent
questions about book sales and how the market works – this one happens to cover
the “what in the world does my Amazon sales rank number mean?” question
- it works for any book, but I’m typically most interested in self publishing
works.

Very roughly, the Amazon sales rank can be taken as a measure of a book’s relative
success to now over 6 MILLION other books at Amazon.com. Every book that has
sold at least a single copy is assigned a rank.

The Amazon sales rank is a measure of how many books YOUR book sold compared
to all the other books on Amazon.com. Your rank is yours and yours alone – no
two books can share the rank at any one time (books that have sold the same
number have additional criteria applied). The period of time over which the
sales are measured is varHowever, the ranking is updated hourly.

Amazon applies some very complex (and apparently top secret) math to maintaining
rankings for their top 5,000 books. Sales are measured hourly, daily, and monthly
- and rankings are determined by even the amount of time BETWEEN sales. Books
in the top 5,000 keep their rankings very consistent – and Amazon enforces some
“averaging” of sales to keep your book from jumping up to number one
just because you got all your relatives in New Jersey to buy a copy at exactly
noon on Tuesday (but, do it if you can…for about 30 minutes you’ll have the
most incredible ranking!)

Changes in your Amazon sales rank is a great measure of the success of your
marketing efforts – hopefully a nice bump upwards in rank corresponds to a book
promotion or event. These are usually temporary, as it is consistent an concerted
effort to move the sales rank significantly. A general rule of thumb (first
proposed by Morris Leventhal of FonerBooks) is to note your rank twice a week
for four weeks, then divide by 8. This will show your “average” Amazon
sales rank. Checking any more than that is really meaningless, since these ranks
can change on an hourly basis. You’ll find that titles that sit within the top
5,000 do not usually fluctuate by more than 20% (and Amazon is trying to contain
even this level of fluctuation). Titles in the 10-20,000 range may jump or drop
by as much 50 or 60%. Titles under the 50,000 mark will swing wildly.

Amazon Sales Rank – by the “numbers”

So – what does all this mean? How MANY books am I selling?

Well, that’s a tough question, but here’s some very general numbers based on
average Amazon sales rank for our Dog Ear Publishing titles listed on Amazon.com:

Rank Weekly Sales
1,000 90 copies
10,000 60 copies
100,000 16 copies
300,000 12 copies
500,000 1 copy
1,000,000 1 copy per month

Now, this isn’t going to hold true all year long on a unit basis – sale rates
change per season – but it will hold in the RELATIONSHIP between sales ranks.

So, theoretically, Amazon sales ranks don’t change without some action having
occurred – meaning your rank won’t go up without a sale, and they don’t fall
unless some other book has more sales in the past 24 hours (though the numbers
get pretty funky in the “under 50,000″ range). Your titles rank will
drop if you have no sales, but the rate at which it will drop is dependent upon
how consistently strong your sales were BEFORE it stopped selling – sort of…
It’s a bit of a bell curve that hits the middle ground most severely – books
with long term, strong sales drop slowly, moderate sellers (under 50,000 to
about 250,000) drop faster, and weak sellers (500,000 and down) drop positions
very slowly. As we said, books ranks are calculated every hour of the day.

How can I apply this to my book?

Well, you really can only apply it in hindsight… use Amazon sales rank to
check your progress as a marketer. Think about what rankings of competitive
titles mean – are you moving up or down in relation? Use it to choose your next
publishing objective or marketing program plan. In the grand scheme of self
publishing, sometimes this vague data is the only thing we get – we don’t truly
have a ‘brick-and-mortar’ bookstore presence to measure.

Using Book Press Releases and New Book Announcements

I’ve been digging out the articles I wrote for my site – Dog Ear Publishing – here’s another classic on Book Marketing. The articles I’m posting here are pretty much in their entirety – I’m not trying to drag you over to the Dog Ear site – but please, feel free to visit!

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How to effectively market your self published book using Press Releases and New Book Announcements.

I come from the traditional publishing world – both working at the largest retail bookstore chain in the world and at the largest book publisher… and I spent years thinking that I (and others like me) knew the best ways to promote and sell books. All it took was tens of thousands of dollars in advertising, a hot spot on radio or TV, and an author who could be presentable in interviews. It wasn’t about the audience, topic, book quality, or even the author.

It wasn’t long before I saw how wrong I was! Boy did I learn some lessons after leaving the safe havens and hallowed halls of traditional publishing (I actually learned a bunch while I was there too). I am convinced that the author is the single most important and effective tool in promoting his or her book. You must promote your book as aggressively as possible. It is your efforts that will make the difference between your book becoming a successful and exciting seller or collecting dust and mold on damp shelves (those units that don’t get returned.)

Well, then – what to do? How can you go beyond just seeing your words in print and actually bring to life your dream of being a successful, selling author? It’s always risky to make broad statements about marketing and promoting books – because so often varying audiences and topics have very different needs. BUT – most of the mechanics are the same. Keep in mind the audience for which you wrote your book in the first place. NEVER, EVER forget that it’s far easier to sell your book to someone genuinely interested in your topic!

So we return once again to WHO WILL READ YOUR BOOK? Who is your target audience? Hopefully you’ve spent some time thinking about this – and you wrote your book with an audience in mind. Now we have to find ways to reach them…

1 – Magazines

One of the first items on the list is to identify the media sources that cater to your audience – look for the magazines that are read by the people who will be reading your book and search the Internet for newsletters. It goes like this – say your are Helen Corey – our author of Healthy Syrian and Lebanese Cooking, then her target magazines include Bon Apetit, Gourmet, and Cuisine magazines. Web sites would be Cooks.com, Epicurious.com and others. How about a book on real estate like our recent author Al Chapman – then maybe magazines like REALTOR, but also publications like Smart Money. Try and think outside the box!

But wait – now you need to do some research about each of those magazines! Spend some time identifying the editor that writes reviews about books or other materials – or the editor who is charge of covering your specific topic (ethnic food, or real estate investments for example). It’s far better to contact 50 highly targeted sources than sending 500 blind or blanketed press releases.

Now it’s time to write your press release (or review the one we’ll provide you in our Professional and Masterpiece packages). Two things have to occur for your Press Release to have ANY value – 1) it must truly reflect your book and the target markets needs, and 2) unless it actually gets to the desk of the RIGHT person to write about your book, there’s a fairly sure guarantee that the WRONG person will dump your hard won Release in the wastebasket. What’s this all mean? Research, research, research – hit the phones, scour the web sites, and go to the bookstore and read the mastheads and ferret out the name – or names – of the RIGHT person (or persons) at each magazine. Remember this, too – getting a review in a more nichŽ publication (think small targeted circulation vs. mainstream like Gourmet) is well worth your effort and time – the people reading and visiting specialty publications are already predisposed to be interested in your book.

2- Newspapers (small and large)

Now it’s time to hit the papers. Here some additional tricks can help you – and it’s even more important to target your press release to targeted individuals. Practically every paper around the country has an editor for specific topics such as science, health, sports, lifestyle, travel, etc. Get to the right person! But, don’t neglect the Book Reviewer or editor – just remember that there are quite likely many places in the paper that could possibly review your book (or even mention it as a resource for a story!) A “guerilla” marketing approach (if we don’t write your press release) – ask your targeted editor if he or she can recommend someone to write your press release. Many editors “freelance” their services – and it might be a way to get a wonderfully written press release, and a leg up in getting it printed!

3- I want to be a star on the RADIO (and TV)

Both the AM and FM dials are full of talk radio – and this is your target. Hit AM first (since there are so many, the chances of getting on the air are higher) and then follow up with the “big guys” on FM like NPR’s All Things Considered. Email, mail, or fax your Press Release to every single one that seems appropriate. We can assist you in purchasing a database of such stations, or you can hit the internet and look this information up on your own. Several companies make directories of the radio industry – including Gale Research – and many are available in the library. Don’t forget to start local and work outwards – you are more likely to attract attention in your own town than somewhere 500 miles away. While it’s tough to say how often it is successful, make sure to get your information to your local TV stations – quite often a slow news day may come up, or, you might be hitting on a hot and current topic – and you might get a call. Get the names of the producers who set up interviews, or the reporter who covers the subject that you’ve written about. Don’t forget cable television. Then fax AND email your information to them – and my experience is DON’T call… but be persistent with email and faxes every couple of weeks.

As I’ve said, pay particular attention to your local stations and papers – you’ll have a far greater chance of getting on a local show or in a local paper. Another strong outlet is your city’s multitude of “freebie” community newspapers. Most of the time, these outlets have a need for good material – and always love it when that information is free. Remember to contact the ones you wouldn’t normally think of – a book on real estate would be a great “editorial” in the local real estate or “homes for sale” magazine!

Well, I’ve sent all these Press Releases – Don’t I want to send a book, too? NO – for one, it’s VERY expensive; and two – most editors don’t want to read your book, they want to read a nice, short Press Release to get an idea of what your book is about. Your Press Release will be nicely written, one or two pages, and will direct the reader to either contact you or us for review copies and to set up an interview – pick one or the other. NO editor wants to call two places. Don’t make them do extra work!

4 -National Exposure – the BIG ONES

The Today Show, Regis, Oprah, Good Morning America – all the famous shows. Every single one of them should get a copy of your Press Release. Do your research again and get the names of the producers – watch a show or two and see who produces which segments (or even the ones you think you’ll like) and send them your Press Release. Mention what you liked about one of their shows and why you think you can present something of a similar level of interest to the audience. These shows are long shots for even the most successful of authors – but there are times you’ d be very surprised by who ends up on the air!

These four “Marketing Targets” cover the entire spectrum of media likely to review your book and give you “air time”. Between all these media outlets, the internet, and local interest, there is a very good chance that you’ll end up on at least one. One of the last bits of advice to increase your chances is to make sure the producers and editors understand that you are available 24 hours a day, 7 days a week. Many times complete unknowns have vaulted into stardom because of a big name last minute cancellation!

As a last thought – use the relationships you have. Authors MUST be fairly shameless self promoters – but do it with some level of dignity. Everyone you know should know that you have written a book and that you are on the Promotion & Marketing Warpath! Ask friends if they have friends who have friends at any of the above mentioned outlets – you’ll be surprised how close some of these “media makers” are –sometimes desperate reporters, television producers and radio hosts are just looking for guests to pop up out of the woodwork. Let everyone know that you are available.

Finally – promote, promote, promote – saturate the media with Press Releases and Announcements. It is a very rare book indeed that sells purely on it’s own “psychic” draw and no public awareness.

How Do I set the Retail Price for my book?

When the physical characteristics of your book (such as page count, covers, binding, size, etc.) are finalized, Dog Ear Publishing will calculate a single-copy printing cost (we’ll give you an Estimate far before this point however). This price is a function of trim size, binding, cover stock, colors, etc – all the “physical” traits of your book.You then need to decide the Retail Price. The retail price should be based on your appraisal of the target audience – this includes the value your product provides to the reader, as well as what price point OTHER competitive products are selling. The retail price should be at least 2.5 times the single-copy printing cost to allow for a reasonable margin (to cover our costs and your payments) after trade discounts are factored in. The Retail Price also helps establish the Net Sales Payment amount – the amount you, the author, make from each sale.

There is a point where we cannot afford to sell your book direct to consumers – and that price can be estimated by adding our handling charge (usually $2.00) to your
 
 
 

 

Book Printing Price

.You, are of course, completely in control and may price your book at whatever level you wish. At Dog Ear Publishing, the author sets his/her book’s retail price.We’ll say it again – it is recommended that this book retail price be at LEAST 2.5 times the “single-copy print cost” to allow for standard trade discounts to book stores and distributors and libraries, and leave enough “gross margin” remaining so the author will enjoy a reasonable Net Sales Payment (see
 
 
 

 

How Are My Sales Credited? for more on Sales Payments). We’ve included a handy chart (see Single Copy Book Costs for examples) to help illustrate the print cost (this is what YOU will pay for copies of your own book) and the corresponding MINIMUM retail price. If you wish to set a HIGHER retail price, your Sales return will rise significantly.

Here’s an example:

Your book costs $3.50 per unit to print

You want to get full representation in the chains and distributors, so you offer a 55% discount from RETAIL

You divide $3.50 by .45 (100 – 55% = 45%) and get $7.78 as your break-even point

To make a nice amount per sale, but to stay competitive, you price your book at $11.95

Here are some things to consider when setting your price point.Various discounts are allowed to libraries and college bookstores (15%-20%), independent bookstores (40%) and large chains and distributors (50%-55%). You may also want to offer volume discounts for individuals who buy more than 5 or more than 10 copies of your book at one time.

From the net sale amount (the retail price less the discount given) deduct the single-copy printing cost to determine the “gross margin.” The author’s Net Sales Payment is the gross margin MINUS the Dog Ear Publishing handling fee (if any). Your author services rep will calculate various price-point scenarios if you wish. You can also see
 
 

 

for more information.Dog Ear Publishing’s role and responsibilities:
Dog Ear Publishing calculates the single-copy printing cost, and publicizes the retail price set by the author. Dog Ear Publishing records payments accruing to the author on each sale.
Author’s role and responsibilities:

The author sets the retail price and, in so doing, establishes the Net Sales Payment
 
 
 

 

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