🚨 Audible’s New Royalty Model Screws Authors

What looks like a 50% royalty increase is actually a payout cut hidden in fine print.

Audible is at it again. They have announced a shiny new royalty model that looks good on paper: 50% for exclusives and 30% for non-exclusives. But there is a catch, and it is not what you think.

Right now, this model is still in beta and has not rolled out to everyone distributing to Audible. If you publish through ACX, you are unaffected for now. However, Audible has a long history of abuse, and what is to stop them from flipping a switch once it is ready?

Remember Audiblegate back in 2020, when they clawed back author royalties on books that had already been listened to? Thousands of authors stood up, and Audible gave ground but only barely. That lack of transparency never really went away.

Now they are doubling down with a system that quietly drains money from the very authors who keep their catalog alive. One insider shared exactly how it works: Robin Sullivan, the wife and business manager of bestselling author Michael J. Sullivan. She has already met with Audible leadership, she has already done the math, and she is sounding the alarm before this becomes a nightmare for every author.

Audiblegate Revisited

Are we looking at a new iteration of Audiblegate?

Back in 2020, Audible tried pulling one of the dirtiest tricks in publishing. Their return policy let customers send back an audiobook for up to 365 days, even if they had listened to the entire thing. When a return happened, Audible clawed back the royalty directly from the author or narrator.

Authors had no idea how much they were losing because Audible hid returns in vague reports. The truth only came out after a glitch exposed massive deductions, with some authors realizing they had lost a significant portion of their income.

That sparked the movement known as Audiblegate. More than 12,000 authors signed a letter demanding change, with groups like the Authors Guild and the Alliance of Independent Authors backing them. The outrage was loud enough that Audible finally responded.

Their fix? Instead of a full 365-day return window, authors would keep their royalties if a title was returned after seven days. That sounded like progress, but in reality, seven days is more than enough for a customer to binge a book and send it back. Authors were still stuck covering the bill.

Audiblegate showed the world exactly how Audible operates. They talk about supporting authors, but behind the scenes they create systems that shift costs away from the company and onto the creators. They gave up just enough to quiet the noise, but the core problem remained. Lack of transparency. Lack of fairness. And royalties that are far below industry standards.

Sanderson’s Stand and Optimism

Authors felt hopeful after Brandon Sanderson shared a new royalty structure was in development at Audible.

In 2022, bestselling author Brandon Sanderson made headlines for refusing to put his books on Audible. He called Audible ‘a good company doing bad things’ and said their royalty structure was unconscionable. At the time, exclusives earned 40%, non-exclusives just 25%. Compared to the 70% other digital platforms pay creators, Audible’s deal was insulting.

Sanderson took a stand. He launched his Secret Projects without Audible and instead partnered with Spotify and Speechify, both of which offered far better terms. His decision cost him sales, but it sent a message.

Then, in 2024, Audible presented him with a new royalty structure. It promised monthly payouts instead of quarterly, better transparency with spreadsheets, and higher minimum rates. Sanderson admitted it wasn’t perfect, but he felt it was progress.

He told fans this was a victory. He said the new model was better, that change was possible, and that every author would soon see improved royalties. With that, he agreed to put his books on Audible after all.

I do not believe Sanderson set out to harm authors. He took Audible at their word, hoping they were serious about change. In Daniel Greene’s new video, Sanderson says, “So this was my worry, that they used something they were planning to placate me. I hoped it was not the case and felt it more important to meet them at the table and try their model for a year. But after a year, I am unfortunately not surprised to hear this. Expect more from me in the future.” That turns the optimism of 2024 into disappointment and sets up what Robin Sullivan uncovered next.

The New Audible Royalty Model

Robin Sullivan, author business manager

Robin Sullivan, the wife and business manager of bestselling author Michael J. Sullivan, began analyzing this new royalty model in detail. What she found should worry every author in this industry.

Here is the basic breakdown. Under the old system, Audible paid authors of Plus titles with a one-time buyout. Whether a book was streamed once or a million times, the author got the same flat payment. The new model promised to fix that by introducing ongoing royalties for those titles. On the surface, that sounded like a win.

But here is the catch. When a Premium member spends a credit on a book, you would expect that credit’s full value to go to the author of that book. Under this new system, if that same listener also streams titles in the Plus catalog, part of that credit is siphoned away and redirected to other authors in the Plus pool.

That means the author who sold a book for ownership is suddenly subsidizing Audible’s all-you-can-listen catalog. Robin put it bluntly: you cannot opt out of the economic effects of Plus. Even if you never put your books in that program, you are still losing money when listeners mix a credit purchase with Plus streaming.

And here is where it gets worse. Audible also produces its own titles and puts them into the Plus pool. Which raises the question: when they siphon money from credits, are they also paying themselves? Audible has never given a clear answer.

Robin has been pressing Audible executives for a fix, but so far they are not budging. Her proposal is simple. Keep the Premium pool and the Plus pool separate. If a reader buys a book with a credit, 100% of that money should go to the author of that book. Period. Plus royalties should come from Plus memberships, not from siphoning money from Premium credits.

To get Audible’s attention, Robin launched a petition. As of August 19, 2025, it has over 8,000 signatures with a goal of 10,000. Her aim is to convince Audible to make this tweak before the new model rolls out to everyone.

Because remember, this system is still in beta. It is not hitting ACX authors yet. But if Audible decides to expand it, every indie author distributing through ACX could face these same losses.

Daniel Greene reports that an inside source confirmed Sanderson’s team was never shown the full details of how the royalty split actually worked. In other words, the optimism Sanderson expressed may have been based on only part of the story.

That same source also told Robin that Audible promised to keep the Plus pool small, so the cut taken from authors outside of it would remain minimal. But even that does not hold up, with major premium titles like The Lord of the Rings already appearing in the Plus catalog. The concern is obvious: if Audible keeps expanding this pool, the cut to Premium authors will only grow larger.

What This Means (and What It Doesn’t)

Audible is offering 50% but it comes with a whole lot of fine print!

Let’s be clear. This new royalty model is still in beta. Right now, it does not affect authors publishing to Audible through ACX, Voices by INAudio, Author’s Republic, or other distributors. But if Audible rolls this out, it will touch every platform tied to them, with ACX authors likely feeling it first since Audible and Amazon own ACX.

But that does not mean you can ignore it. Audible has a long history of testing systems quietly, then rolling them out on a larger scale once the groundwork is set. Audiblegate started with a hidden return policy. This time it is a hidden redistribution of credits.

If Audible flips the switch, it will ripple across every platform that feeds titles into Audible. And because ACX is owned by Audible and Amazon, it is reasonable to assume ACX authors would be the first to feel the impact.

Robin Sullivan is sounding the alarm early because she has seen where this leads. Authors who never opted into Plus could still see their royalties drained by the Plus catalog.

The point is not to panic, it’s to pay attention. Audible has a history of making changes look like improvements on paper while quietly shifting the cost back onto authors.

So while this may not be hitting your dashboard today, the groundwork is being laid. And if authors do not push back now, tomorrow it could be too late.

Even Brandon Sanderson admits he is not surprised anymore. This is the moment for authors to stand together. Robin Sullivan’s petition is the clearest way to push back. It calls on Audible to separate Premium credits from the Plus catalog so authors get the full payment they deserve. Thousands have already signed, and the goal is 7,500. Add your name today. The link is in the description.

And if you want to stay ahead of issues like this, subscribe to the channel. I will keep you updated on this story and every other change that affects indie authors.

In the meantime, check out this podcast where I originally covered the Audiblegate fiasco or catch the deep dive coverage from Daniel Greene. I linked all the sources below, so please browse all of them so you’re fully informed about this issue.

-Dale L. Roberts, that bald guy with the orange shirt on YouTube

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Sources:

• Convince Audible to revise it's New Royalty Model –

  https://www.change.org/p/convince-audible-to-revise-it-s-new-royalty-model

• Daniel Greene: Audible Is Broken -

• Daniel Greene: Audible Exploited Brandon Sanderson -

• Writer Beware: #Audiblegate: How Audible-ACX Returns Policy Penalizes Authors - https://writerbeware.blog/2020/11/20/audiblegate-how-audible-acx-returns-policy-penalizes-authors/

• State of the Sanderson 2022 - https://www.brandonsanderson.com/blogs/blog/state-of-the-sanderson-2022

• Regarding Audible - https://www.brandonsanderson.com/blogs/blog/regarding-audible

• The Ugly Truth Behind Publishing Audiobooks on Audible -