Smashwords store royalties change from 1 January
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R. S. Breed Founder
Jane Friedman reports that the Smashwords store is changing its royalty rates from 1 January. Books priced at $2.99 and up will earn 75%. Anything below $2.99 will earn 40%.
https://www.janefriedman.com/smashwords-store-adjusts-royalty-rates-for-2026/
This is about sales through the Smashwords store itself. If you use them to reach other retailers, read the post for how it applies to you rather than assuming.
The number to pay attention to is the 40%. If you have 99-cent books, cheap box sets, or a first-in-series at $1.99 as a way in, the store is telling you fairly clearly it would rather you didn't. That's their call to make, but it changes the maths.
My take: $2.99 is becoming the floor for any ebook you actually want to earn from, and below that, free is looking like the only low price that still makes sense as a funnel. If you have titles under $2.99 there, December is a good time to decide what to do with them, before the new rates land.