Here’s their offer: If I agree to make my ebooks available exclusively in the Kindle store and participate in the Kindle Lending Library, I will earn fees from a fund they have set aside ($500,000 for the first five months).
Though this might seem like a good idea at first glance, the author worried that almost nobody would want to spend their one checkout per month on his $2.99 title when they could get a more expensive book free instead, and making it available would mean cutting off any and all revenue from other stores—B&N, Apple, Sony, Kobo, etc. And exactly how that $500,000 would be apportioned is hazy, to say the least.
The offer would have the benefit to Amazon of making a lot more books available for the lending library that the Authors Guild couldn’t kick up a fuss over. The question is whether it would benefit the authors. Self-publishing author Joe Konrath, who has his own publishing deals with Amazon, hinted in a comment to the story that the tipster had left out a few key points, and that “Amazon wants very much to make this a good deal for both customers and authors.” But he’s not at liberty to say how.