Last Updated on August 23, 2022 by Ben Oakley
The title should probably read, why you should not buy a KDP business or book on Flippa or anywhere else.
Flippa is an online marketplace to buy and sell online and digital assets. These usually fall under websites, domain names, and apps.
In recent years, a number of authors and publishers have sought to sell their books or book businesses on Flippa.
One example is a self-help book by an author who has zero online presence, and whose name and book title won’t be shared here.
There are some fascinating red flags, not only with this book but with all KDP businesses for sale.
Here’s why you should not buy a KDP business
The listing in question is for a single book with an estimated $400 profit per month. But already the red flags are flaring up.
It might be relevant to note I’m also an intrepid investor who has been involved in stocks and shares for years. I know, bite me later! Still, I know how to invest in value, and when not to invest.
The first red flag of many is the price of the ‘business’, and I when I say business, I mean a single solitary book.
The price for this book is $8,942 USD. For. One. Book.
FOR. ONE. BOOK.
Excuse the capitals, I’m simply blown away by that entry price.
Not only will Amazon NOT transfer the book to another account, which we’ll come onto shortly, but the price is much too high.
There is no value to investing in a single solitary book
From a simple investment perspective, which is what this is, the numbers do not add up.
That $400/month profit mentioned up above is the average in the two years the book has been available to buy.
In the last three months, the trend has been downward, with the monthly royalties between $172 and $121.
Of course, it is possible with the right adaption and marketing strategy to hit that $400/month average again.
But the risk, from an investment perspective is too high. The average current trend is less than $200/month with diminishing returns. Something not worth almost $9,000 USD.
You would have to maintain that $200/month simply to break even in 3 years and 9 months.
Instead of spending $9,000 on a book with diminishing returns, spend a month or two writing and producing your own.
The author of the book in question admits in the Q&A section to producing the book using a ghost-writing company.
The current Amazon ranking for the Kindle book is a little over 140,000 on the bestsellers list. The paperback which is listed as ‘independently published’ is around the same mark. Meaning that $200 is already dwindling.
My suspicion is that the entire sale is a shot in the dark in the hope an amateur investor will stump up the funds.
Amazon will not transfer a book between KDP accounts
In Amazon’s own words:
We cannot move specific titles/draft titles from one account to another.
A screenshot from the listing on Flippa:
I’d rather believe Amazon. However, there is precedent for it. You can merge KDP accounts, but this results in the other account being closed.
Changing publishers on IngramSpark is a little easier but still comes with an uphill battle.
There is a real risk of messing up your own KDP account and landing yourself in hot water with Amazon. The high risk is the main reason not to buy a KDP business.
If you have never had a KDP account, then the process is simply a case of changing access and details. The only thing putting you off then would be the excessive profit/purchase ratio.
The point of this post is to warn you of the dangers involved when acquiring ownership of an already published book.
The decision whether or not to buy a KDP business is down to you and your own risk strategy.