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Kindle Unlimited scammers on Amazon

627 points| monkeyprojects | 10 years ago |annchristy.com | reply

188 comments

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[+] cstross|10 years ago|reply
This scam isn't victimless.

First, it depletes the pot awaiting actual no-shit real hard-working authors who supply a product people want.

Secondly, Amazon react by trying to engineer algorithmic anti-scam measures, which end up catching the aforementioned hard-working authors instead of the scammers. For example:

http://www.walterjonwilliams.net/2016/03/amazon-may-they-cho...

(TLDR: Walter Jon Williams is a respected author, who has been bringing out his backlist of out-of-print novels as ebooks. Amazon's anti-scam measure yanked all his books off sale -- right after he'd released them and run a marketing campaign -- for the crime of having a table of contents at the end of the books. Because that was easier to automate than, say, collecting actual pages-viewed metrics as a basis for payment instead of just checking the last-page-bookmarked.)

[+] caseysoftware|10 years ago|reply
> First, it depletes the pot awaiting actual no-shit real hard-working authors who supply a product people want.

It doesn't just deplete the pot, by driving the per-page price down, it discourages legitimate writers from making their books available via Kindle Unlimited.. which makes the overall program less attractive to customers.

Amazon needs to address this one before it enters the death spiral stage..

[+] coldcode|10 years ago|reply
Amazon apparently won't care until it affects their bottom line and so far it appears not to.

Clearly they built the simplest possible model (pay based on the last page seen) and fixing it is too much work for the little they make. KU is just another bullet point (look here, we have unlimited books) and the money is immaterial so investing as little as possible makes business sense. Why anyone would use KU knowing is is beyond my understanding.

[+] spullara|10 years ago|reply
Based on that article having your table of contents at the end of the book is probably trying to scam more pages. Obviously Amazon needs to fix their page accounting system but taking advantage of it in this way is pretty awful and his books should be removed until they are fixed.
[+] monkeyprojects|10 years ago|reply
That's get little to do with this issue and more to do with Amazon insisting of formatting rules being met.

Especially as none of Walter Jon Williams books seem to be in kindle unlimited

[+] delecti|10 years ago|reply
> Amazon's anti-scam measure yanked all his books off sale -- right after he'd released them and run a marketing campaign

That part probably seems far more relevant as an Amazon customer than it does to me as an Amazon employee. It'd be like saying "I got a parking ticket the day after I filed my tax return."

It's a shitty coincidence, but only that.

[+] pink_dinner|10 years ago|reply
It's really no different than file sharing and the music industry (and how it devalued mp3s and music to $0 over the last decade).

The technology is now just coming around to the book industry.

[+] kcorbitt|10 years ago|reply
I don't think the right solution is to track pages read better. That would make the scam a bit harder (because scammers would have to either manually turn pages or fake the client software), but is still pretty easily defeatable.

A couple of things that Amazon could do to fix this behavior:

1. Instead of putting all KU subscriptions in a big pot and then dividing the pot among all authors by page read, divide the income from each individual subscriber among the pages he/she reads (so a read from a user who reads less would effectively be worth more). That way spammers who join collectives to read each others' giant books are just taking money from each other instead of stealing from the larger pot.

2. Don't pay out revenue for pages read until 2-3 months after the fact, and if a book is determined to be spam during that time withhold all revenues. This admittedly affects legitimate authors as well, but maybe Amazon could soften the blow by contributing the spam-attributed portion of the KU revenue back to the author pot so all the legitimate authors get a nice little bonus for their patience.

Note that either/both options might require renegotiating contracts with KU program authors, but if the spam problem is as bad as it sounds I can't imagine most legitimate authors objecting.

[+] kbenson|10 years ago|reply
> Instead of putting all KU subscriptions in a big pot and then dividing the pot among all authors by page read, divide the income from each individual subscriber among the pages he/she reads (so a read from a user who reads less would effectively be worth more).

There's a few side-effects to this, some may be beneficial depending on your point of view, others not.

- People who read more are paying less to each author than those who read less. I might find an author I like, and voraciously consume thousands of pages of her works in a month. My total payout to her would be the same monthly fee. Popular and/or good authors shouldn't be penalized.

- What happens to the monthly fees for people that don't read anything that month? Does Amazon get to keep it?

- It runs the risk of incentivizing click-bait titles and synopsis, which may cause readers to think most the content on the platform sucks, and leave. Everybody is worse off if the platform fails entirely.

In the end, Amazon wants a market where good authors can get paid, so they'll come, and they want good authors because that will attract subscribers, which is how Amazon gets paid. Pairing subscribers with authors they like, and allowing an exchange of money for services as frictionless as possible is in the best interest for all the legitimate actors here, so hopefully Amazon will find a better solution soon.

[+] kevincox|10 years ago|reply
Exactly, if you divide the pot per-user then a scammer who opens an account can only make their own money back (minus amazon's cut) making a scam like this a non-starter.

Next they can try to trick legitimate readers, which was mentioned in the article. But that can be mitigated by actually counting pages read. Because tricking a legitimate reader is click through pages of garbage is going to be a hard sell.

Next you have to worry about account hijacking but that's a whole different kettle of fish.

[+] astrodust|10 years ago|reply
How about a manual review of any anomalously high payouts? Someone who showed up out of nowhere and starts pulling down $70K a month should at least be given a cursory investigation. Based on the description here it wouldn't take five minutes to uncover the problem.
[+] nateberkopec|10 years ago|reply
Ouch. I wrote a travelogue as a side project/on a bit of a lark, and I enrolled it in "KDP Select" (Kindle Unlimited). I make far more money, it seems, from full-price purchases than my per-page royalties from Kindle Unlimited. It really seems that it doesn't make sense for most authors, since the revenue-per-page is diluted by these scammers.

EDIT: To put some numbers on it, here's my KDP dashboard: http://imgur.com/lDWoQQ6 The book is $4.99, of which I receive 70% ($3.50). I sell about 3 copies per day (making about $10), and generally get ~350 pages read per day (making $1.50). So I make 10x on regular sales what I do on Kindle Unlimited. If it matters, it's a short book of ~300 Kindle-normalized pages.

While writing this up, I realized Amazon charges authors $0.15 per megabyte of book file size per download. My book was 10 MB thanks to a bunch of photos. After extreme JPEG compression I was able to get it down to ~2MB or so. I wonder how many authors, like me, are losing 20% of their royalty without realizing it.

On AWS, you're charged ~$0.09/GB of bandwidth out. How Amazon thinks 1000x pricing is fair here is beyond me.

[+] robhu|10 years ago|reply
I would guess the high megabyte charge is there to encourage authors to keep their file sizes down, and the reason for this is presumably because Amazon have to pay for book downloads run through their 'Whispernet' (3G) Kindle service.
[+] extra88|10 years ago|reply
> Amazon charges authors $0.15 per megabyte of book file size per download

But they don't charge you anything to store the book, right? Charging something for the download is presumably necessary to discourage gaming the system and the rate chosen is meant to encourage books they consider the right size which may penalize (intentionally or not) image-laden books.

I'm not arguing that that Amazon's policies are right or that "Unlimited" makes sense for authors (or readers), just that there are good reasons to charge something.

> On AWS, you're charged $0.15/TB of bandwidth out

Where did you get that? Data out starts at $0.09/GB, goes down to $0.05/GB for big customers and presumably can go down even further for even bigger customers but not 300x cheaper.

https://aws.amazon.com/s3/pricing/ https://aws.amazon.com/ec2/pricing/

[+] smnrchrds|10 years ago|reply
I guess the per megabyte charge is how they recoup the cost of free 3G on Kindle devices.
[+] newman314|10 years ago|reply
Market opportunity? =) BSO (Book Size Optimization)
[+] kbenson|10 years ago|reply
> On AWS, you're charged ~$0.09/GB of bandwidth out. How Amazon thinks 1000x pricing is fair here is beyond me.

Do Kindles still use whispersync, where they get to use cell network connections for free but at very low rates? Even if it's no longer in use, maybe the pricing is still a holdover from that which people haven't noticed.

[+] amazon_not|10 years ago|reply
> On AWS, you're charged ~$0.09/GB of bandwidth out. How Amazon thinks 1000x pricing is fair here is beyond me.

$0.15 per MB is to cover "free" 3G downloads also when roaming.

[+] searine|10 years ago|reply
Just curious. How do you go about advertising your book?
[+] steve19|10 years ago|reply
Can you share a link to your book?
[+] Gratsby|10 years ago|reply
This is very interesting. My son like most kids in his age range is a minecraft junkie. He blew through a series of Minecraft diaries - very short pages, very simple reading, but it entertained him. He read more than 20 of them in a week before I went and got Kindle Unlimited, and blew threw another 20 of them once I did.

It was obvious to me that the books were spam of sorts - but I figured it was to make money on $2-$4 purchases. It wasn't just one author, there was a series of similar book series.

Now I have an understanding of what's taking place. They are targeting kids like my son who can churn through pages like it's his job because it basically is. I'd rather him be reading ANYTHING than nothing. Once you develop a love for it, it turns into a lifelong joy instead of a punishment that you have to suffer through during school.

I really don't like how kids are targeted as revenue streams these days. I feel like there needs to be an awareness campaign targeting soccer moms so they are made aware of all the channels that are aggressively focused on making money off of elementary-school aged children. (endless youtube channels, video games, addictive mobile games, web games, etc.)

There is a giant hole in the marketplace for engaging and fun educational experiences that can be had for an annual subscription that doesn't try to monetize kids throughout the day. There are a lot of "free" educational options that don't have the quality or engagement that kids want. There are a handful of quality ones, but there really needs to be a market-leading presence that small/startup businesses can emulate and aspire to. The money is there in the market but nobody is attacking it properly.

[+] jandrese|10 years ago|reply
Is that really any worse than the dime store pulp novels of old?
[+] ilamont|10 years ago|reply
Self-published authors who went “all in” with KDP Select/Kindle Unlimited are furious about this. You can see the discussion on Kboards:

http://www.kboards.com/index.php/topic,234330.0.html

A few days ago someone shared a link that showed the free KU books in one of the categories filled with scam books, but it looks like a lot of them have been removed:

http://www.amazon.com/gp/search/ref=sr_pg_97?rh=n:283155,n:!...

The other issue this brings up is how Amazon has been pushing authors to join KDP Select/Kindle Unlimited and the Spotify-style payout structure. It’s a raw deal for most authors, the exception being prolific/well-known authors (and the scammers). Anyone joining the program gets some nice marketing tools, but they have to remove their books from other marketplaces (Google Play, iBooks, etc.) and end up cannibalizing the sale of digital downloads which pay more (typically 70% of list for titles priced $2.99 and above).

Like Spotify, Kindle Unlimited is great for audiences and the platform owner. The publishers/creators who can scale do OK. Everyone else gets the scraps.

[+] wmeredith|10 years ago|reply
>Like Spotify, Kindle Unlimited is great for audiences and the platform owner. The publishers/creators who can scale do OK. Everyone else gets the scraps.

Meet the new boss... same as the old boss.

[+] mfoy_|10 years ago|reply
Isn't this payment scheme similar to Spotify's model? I thought that was broken too, considering some artists have 10min "silent" songs that they encourage their fans to play over and over during the night so they can get some more revenue.

Why are services like this using such a fundamentally flawed model to pay their content creators? Why not just allocate funds based on users usage? Is it that much harder to implement?

---

For those who aren't familiar with spotify, they also have a "pot" they pay out of, and they pay out based on your content's consumption (measured in minutes) as a percentage of all content consumed that payout period. So you could have one single Spotify subscriber who listens to your music 24/7 causing you to be paid more than than subscriber pays Spotify. Alternatively you could have a couple subscribers who listen exclusively to a single artist a few times a week and the artist will receive substantially less than those subscribers share of money, since other artists may have a more voracious fan-base.

[+] ar0|10 years ago|reply
I think services are using such models because honestly they don't care very much. As the original article states itself, in a first iteration it's not Amazon who suffers but the legitimate author (same with Spotify, it's the legitimate musician who receives less due to this).

These flatrate plans, where the authors receive a 'part of the pie' are actually a great deal for these companies, because a lot of business risk is transferred to the authors / musicians.

[+] nathancahill|10 years ago|reply
By "some artists" you mean Vulfpeck's Sleepify album? A stun/statement about the flawed music royalties model, used to fund a free tour?
[+] cwyers|10 years ago|reply
With Spotify, the trouble is that paid listeners subsidize free listeners. Artists and labels are not going to consent to a plan where free listens cost less than paid listens.
[+] kbenson|10 years ago|reply
This is a very old scam. Twenty years ago, my little brother did something essentially the same with pay-per-click ads and an IRC chat room of people that would all click on each others ads (or more likely there was a bot that did it for them). My little brother was getting multiple checks each week for $50-$150 until his account with most the ad networks was terminated five to six weeks in.

He was 13 or 14 at the time.

[+] domador|10 years ago|reply
Reward systems of any kind need to be very, very carefully designed, otherwise they are vulnerable to perverse incentives. Unfortunately, there can't be a single chink in the armor.
[+] underwater|10 years ago|reply
I dabbled in subscribing to Kindle Unlimited, but quickly realized that most of the material there was just trash. It was like the literary equivalent of tuning out to some cheap reality TV show. Hearing that authors are paid per page explains a lot.
[+] jff|10 years ago|reply
It was full of trash back when it was paid per "borrow" too. People would crank out dozens of 30-page erotica shorts per month, and each time one of those was read they got paid as much as the author of a 300-page novel. More, in fact, because IIRC the criteria for "user has read enough of the story, time to pay the author" was set as a percentage of the length... so the guy spamming shorts got paid after a page or two, but the novelist didn't get paid until the reader stuck it out through a couple chapters.
[+] nissehulth|10 years ago|reply
I read the whole article and didn't find any explanation what "KU" was. Now I find here that it means "Kindle Unlimited" but I still have no idea what it is. Some kind of subscription service?

I buy a lot of Kindle books but never seen any "Unlimited" offer, perhaps something that is US only?

[+] nateberkopec|10 years ago|reply
Kindle Unlimited is Amazon's "Spotify/Netflix for Books" product. $10/month to read any book enrolled in the Kindle Unlimited program.
[+] klagermkii|10 years ago|reply
I guess this is one version of what a micro-transaction powered Web could look like. Potentially even worse forms of click-bait becoming dominant.
[+] AJ007|10 years ago|reply
If this is correctly documented, there is no reason why Amazon would not have to pay out all the truly owed royalties to authors.

Fraudulent methods of measurement are a real issue in online marketplaces and you can't just say oops when you are sued.

[+] djrogers|10 years ago|reply
Wouldn't it make sense for Amazon to hold payouts for 30-60 days on new accounts, and require books to be available for 30-60 days before a payout?

It seems a huge part of this scam is pulling your book from the store before you get caught - make that part impossible and he scammers will have to work a lot harder.

There are ways around anything for a determined scammer, but those all have an associated cost, and if you make the costs high enough many of the scammers will go away.

[+] AndrewUnmuted|10 years ago|reply
I was a founding member of the ACX service, which is a partnership of sorts between Amazon's Audible and KDP properties. It allows self-published authors to have audiobooks made by voice actors of _highly_ varying degrees of talent + expertise, which then get sold on Amazon/Audible.

As the manager of the Audio QA team and its related internal technology services, I saw this kind of scammery on a daily basis. Amazon has actually a very weak policy against these kinds of scammers, because getting someone kicked off of the service for this kind of thing requires a lot of expensive and time-consuming legal work. Amazon likes avoiding this consequence whenver possible.

And yes, audiobook voice actors would try to turn all kinds of scams on us - from robo-voicing entire narrations, to resubmitting a prior-recorded audiobook under a different title and author credit.

When you open your media library to the dastardly UGC (user-generated content) world, these things will happen. The fact is that Amazon has become successful in monopolizing both book and audiobook distribution because they have figured out how to devalue the experience _just_ enough to extract as much scale as possible to out-perform the competition.

[+] sireat|10 years ago|reply
What is ridiculous that while these kind of KU scams abound a legitimate publisher is still unable to publish on KDP (where people pay real money for a real e-book whole) unless your language is one of the chosen few: https://kdp.amazon.com/help?topicId=A9FDO0A3V0119

It took forever to get Welsh added to the list and after that no change for the past 4-5 years on Amazon KDP.

Finnish is fine, but Estonian is not. Polish, Latvian, Lithuanian are deemed unreadable by Amazon KDP despite rendering just fine sideloaded on my Kindle. It is beyond infuriating.

I have edited multiple books for a non-profit organisation to publish on Amazon Createspace, that is the print-on-demand division.

No problem on Amazon print-on-demand you can publish in Klingon if you want, but every time I choose to publish the same book on KDP(KDP is half-assedly integrated into Createspace Dashboard) my books get thrown back programmatically after a few days because too much of the text is in an unsupported language.

The official Amazon reason for refusal to publish these same books on Kindle is because they feel the user experience in unsupported languages would be substandard.

In other words Amazon are either incompetent and understuffed or mostly just do not care about publishing in niche languages. I suspect it is the latter since I doubt the former.

This is despite the book rendering just fine on my Kindle privately I just can't publish it on KDP.

I apologize for the rant, but it irks me that Amazon a company which is supposed to care about book publishing is so blase about it.

[+] kirykl|10 years ago|reply
Paying per page and requiring exclusivity seem like a recipe for terrible content.
[+] Practicality|10 years ago|reply
It doesn't seem like it would be that hard to add a time on page metric before counting pages, especially when you own the hardware. I am honestly quite surprised this was missed.
[+] fpgeek|10 years ago|reply
Even easier (or as a first step), Amazon could count the pages that were actually displayed, not the ones that were skipped past. I'm pretty surprised they're not doing that already since it would be a good way to account for books of short stories where a reader might skip over some stories naturally.
[+] awqrre|10 years ago|reply
Would that be user-generated data?
[+] obsurveyor|10 years ago|reply
Who is writing these horrible systems for Amazon? From the article, the way they detect page reads sounds like the simplest use case that a novice developer would come up with. Kindles can definitely record information and upload it later when there's a chance to sync; I use it all the time to submit corrections for books. There's no reason that it should be this simple to game.

Of course, the scammers would just move on to using actual device farms but at least there would be some physical obstacles.

[+] feintruled|10 years ago|reply
In summary - Amazon pays all Kindle Unlimited authors out of a shared pot, the size of your share determined by the metric of "pages read" (and you thought your Kindle just reported that back for syncing purposes!). Enter the scammers - who make 3000 page fake books, page one containing an enticing link to the final page. This counts as having read the whole book!