E-book Pricing


What price to charge for an e-book? This is the great debate amongst Indie writers.

Hanging out on a few independent writer sites, I’ve noticed this issue cropping up. It is the one foremost in my own mind. Joe Konrath made a good case on Kindle boards (sorry can’t find the link) and has another blog post about pricing here. Zoe Winters has touched on the subject here and here. Joe and Zoe are only two people, but both are very visible.

Kindle and Smashwords are the two venues I’m the most familiar with, but there are more. Publishing through Smashwords opens up 4 other markets – Barnes & Noble, Apple, Sony and Kobo. (PubIt! just went live. As a reader, I’m excited. More books for my Nook!)

The Kindle store doesn’t allow Indie writers to give their work away. In fact, Amazon may have raised the royalty rate to 70% to bring the price of e-books UP to $2.99 as well as down to $9.99. While Smashwords hasn’t set a minimum price – they have “coupon codes” so a writer can price their book at a competitive level, yet still give away discounted or free copies as needed.

I want to point out is that many Indie authors are selling their books for $.99 or giving them away. Selling a book cheap (or free) was the way that Winters and Konrath got noticed. As the numbers of Indie authors have skyrocketed, cheap reads are very common. Perhaps too common, there is a lot of downward pressure on book prices.

There is a precedent for freebies on the ‘trade’ side, too. Ellora’s Cave and Harlequin give e-books away. Barnes & Noble gives away a book a week to Nook owners.

I’m kicking myself for losing the link for this – but I picked up the price list below from somewhere. (I’m so sorry, whoever you are!) I found this place from a link of Zoe’s, I’ve posted it here to give us a benchmark.

$0.99 Short Shorts: Under 3K
$1.99 Shorts: 3-7K
$2.99 Stories: 7-15K
$3.99 Novelettes: 15-35K
$4.99 Novellas: 35-50K
$5.99 Novels 50-70K
$6.99 Super Novels: 70-140K
$7.99 Super XL Novels: 140-250K
$8.99 Super XXL Novels: 250K +

Pricing by length makes sense to me. This list is from an e-publisher. Some would say a ‘professionally’ published e-book ratea more money than a lowly self-published book. Following this price schedule would be a huge step up – “Let’s Do Lunch” would sell for $6.99 just by word count.

A second point is that e-book length, as well as pricing, appears to go in two different directions. The women’s fiction/romance/erotica market is going shorter, while the fantasy side is getting longer. Hmmm…Does this reflect the free time available for each gender? I know that I don’t read modern fantasy anymore, because the darn books are too long. I digress – back on track.

Is this a textbook case of ‘the cream rises to the top?’-

Joe and Zoe – who gained their popularity with $.99 books, are vocal about raising prices in a time when more people are saying ‘Indie books are worthless crap.’ Since they are the ‘cream’ of the Indie world, they may be on the right track for themselves, but not for everyone.

I killed my sales by upping the price of Let’s Do Lunch” to $2.99. There are a number of caveats to that statement. The book is available in more markets than just Kindle, thanks to Smashwords, it even has an ISBN number. Having the sales drop from 4 a week to 0 was a big ‘oh shit.’

The reason that I’m ‘coming out’ on this issue is that I promised myself in the beginning that “Lunch” was an experiment. I could document the ‘ups and downs’ so other wannabe writers could check this blog for ‘real time’ results.

Back to pricing – Is $.99 the only answer?

I hate to say it, but the answer may just be ‘yes.’ Unknown, self-published authors may not have a choice. Is the market saying ‘if it costs more than a buck, forget it.’ to unknowns like myself?
Should I just wait it out – leave well enough alone until the Smashwords affiliate sales reports come in?

Should I drop the Kindle price back to $.99 because I’m desperate to see some sales? Or, raise the price to the charts ‘market levels’ to combat the pressure for cheap/free reads? Either way changes to Smashwords take weeks to trickle down, while my Kindle contract stipulates they will have the lowest price.

Splitting the price to the different markets could be a good way to test my pricing theory. I could drop my Kindle price to $.99 and leave the rest the same. This could also be an ugly can of worms that I don’t want to freaking open! I can see an price war – of my own doing – that will take months to clear up.

Kobo is already selling my book for 20% off the cover price. Amazon is sure to follow! Which may (or may not) knock me out of the 70% royalty. Currently the Smashwords price is $3.25 – because Kobo does this. It gave me some wiggle room.

Top it off – Apple & maybe Sony will round up the price to the nearest $.99. So my book could sell for $3.99 at either store.

Marketing is a pain in the tush – get on with it!

The ugly truth is that marketing is now the ‘make or break’ for a writer. It doesn’t matter if you are published by a ‘trade’ publisher, or if you self-published. New writers don’t get any marketing help. (I promise to write that post soon.)

Short of hiring someone to market the book, how should a writer work out some kind of marketing strategy? There are plenty of review sites, more ‘author interview’ sites. Neither of these made any difference in my sales. (Not even Authors on Show, though they gave me a week of phenomenal hits.)

Creating a marketing co-op could be an answer, if I decided I didn’t want to write and wanted only to market other writer’s books. In my case, joining a co-op would be a better idea. Yet when I look at the one co-op I’m familiar with, it doesn’t look so good.

Lebrary.com is the co-op I’m talking about – I see where they are trolling for authors – but not advertising their content. Book prices vary by length and the purchased package. Yet I don’t see them taking advantage of their content by marketing the site to readers. They have no brand. This mistake may kill the site.

Content is valuable – to simply charge authors for disk space is a waste of resources. Kindle is a brand. Barnes and Noble is a brand. Authors on Show has the right idea. (Go Team AoS!) Lebrary.com could learn a lot from AoS.

Even though my efforts at marketing (besides the $.99 price) have been futile, other writers are looking to me for advice, and/or help marketing their books.

Talk about the blind leading the blind.

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29 thoughts on “E-book Pricing

  1. zoewinters says:

    Hey, thanks for the shout out! While I do realize 99 cents helped gain me visibility, I also regret doing it for so long because I feel like it trains readers into entitlement. $2.99 is less than you pay for a coffee at starbucks. Since raising my prices, my sales rank has gotten worse, yes. But I’m to the point where I say “Screw it”. If someone doesn’t feel like my work is worth the cost of a cup of coffee, then I need to pick another business to get into. As much as I love writing I would seriously start to resent readers at the 99 cent price point.

    I raised my prices, in fact, due to one reader who flipped out about how she had to pay a whole 89 cents for Kept and thought because it was “short” it should be free. She was the final straw for me. LOL

    I figure I’m back at the beginning in some ways because it feels like I have to build my momentum all over again at the new price point. But I’m going to be patient and give it time so I can hopefully trickle into the customer base that is willing to pay more than 99 cents.

    We’ll see what happens in a few months when I release the next book.

    The pricing list that you quoted, I believe you got that from http://theselfpublishingrevolution.blogspot.com from a post by Selena Kitt. 🙂

    • K. A. Jordan says:

      Hi Zoe!
      I don’t want to sound like a stalker, or a fangirl, I’ve been running into you everywhere. I’ve noticed that you’ve gotten impatient with readers and pricing. “Shut up, Slave!” was a big hint. 😉 It has to feel odd to have perfect strangers looking over your shoulder…and voicing their opinions of your career. Yet, here I am, (Kat J.) again.

      I understand where you are coming from on the pricing issue. I’ve read the posts by you and Konrath – you both make your cases clear. What I’m wondering is if you both have ‘paid your dues,’ where it makes sense for you to raise your prices. “The cream rises to the top,” is what we hear, and it appears true. This may just be the next step for you – the rest of us are going to have to work harder to catch up.

      The $2.99 price point may not work for me, as an unknown. But I don’t know – because the only clue I have is my sales stopped the week I raised the price up from $.99. It still looks like the key is backlist.

      I’m working on a paranormal romance – so we will running into each other even more often when I release my PNR. Look for a book titled “Swallow the Moon” sometime before the first of the year. (I hope.)

      Thanks for stopping in.

  2. zoewinters says:

    haha Well, I put the stuff I put out there to gain readers/fans/attention so it would be silly for me to call someone a stalker for doing exactly what I want them to do. 😛

    LMAO yeah I think I hit my breaking point. Part of it is stress, but I really bust my ass trying to get ahead here and I did the 99 cent price point to be generous and gain reader trust and when people started to complain about that… I went over the edge. LOL. I mean really… do these people live under an underpass that they’d begrudge me 99 cents for three hours worth of entertainment? (And if they read faster than that… how is that my fault?)

    I *do* think you make a valid point. I mean it would be the height of hypocrisy for me to say… My stuff was 99 cents for forever and I gained more readers doing it… but you can’t do it because you’re undervaluing everyone else’s work. You’d look at me and say pffft. And you’d be right to.

    I actually think what is going to happen as more and more people price at 99 cents, is a lot of discerning readers are going to start assuming 99 cent ereads are crap. Because more established/trusted indies are going to start charging more. So it might be better (at some point… maybe not quite yet) for indies to start out at 2.99 to blend in with that price point.

    I think if the writing is really strong, readers won’t balk at 2.99. It just takes time. I *wish* everyone would collectively agree not to price under 2.99, but I know they won’t. I’m not sure how this will affect us all long term is all.

    Before things like the Kindle, well you saw Selena’s price list. This price sensitivity is because of this race to the bottom. And in the end I worry that we’ll all be screwed.

    By the same token, though… I don’t think most readers want to read random 99 cent ebooks just because they are cheap. I think if people want “your” work specifically… if you build that demand, they will pay higher to read your work instead of reading random authors they don’t already know and love.

    It’s the same principle behind why Kresley Cole can sell the crap out of Kindle books at a higher price point. She’s a name. People know who she is and they’ll pay the higher prices to read her.

    You might want to build backlist and then leave only one book at 99 cents to pull people in, then price the others at $2.99 or higher.

    Good luck on your book!

  3. zoewinters says:

    Oh and wow… so sorry I posted you a novel there! I didn’t realize it would be that long when I typed it.

  4. K. A. Jordan says:

    Good to see you back. You can write me a novel any day.

    Still in stalker mode (g) – I can see why you are stressing. I’ve been all over the boards behind you. I get the picture. From here, it looks like you’ve hit a crossroads and are ready to move up and move on. You are obviously busting ass and have been for a while. Give yourself permission to walk away from the dumb shit that is stressing you out. (I was a councilor in a past life.) Walking away from the idiots, who are expending a lot of energy trying to piss you off, is a healthy choice. An old boss of mine used to say “never argue with an idiot – you can’t win.” They aren’t smart enough to know they lost.

    On my other blog (this is my new one) I got over 50 hits in a day and a half on the issue of pricing. People from Australa and the UK as well as here in the US have seen the chart. I’m plugged in to a network of writers via face book.

    The price schedule is spreading. I should get a hundred hits in the next couple of days, from people who are serious about Indie publishing. Most of them have at least one book, some have several. (I know, its not a lot of hits, but they are hits from people from all over.

    Newbie Indies want to know what worked for you.

    Are you willing to be interviewed by me? They are going to be business side questions, not writing side. Think about it and get back to me.

  5. zoewinters says:

    HA @ “They aren’t smart enough to know they lost”. That’s priceless and true. Sure, I’d love to do an interview! You can send me questions to: zoegrace25 AT gmail DOT com

    And yeah, that’s cool. 🙂

  6. Hi Kat,

    I followed you over here from Kindleboards. I’m always interested in reading more on this controversy, particularly because I’m a marketing analyst in “real life”…LOL.

    Moses Siregar had a good pricing war post on his blog recently where he also mentioned Selena Kitt’s price list (and Zoe), and he also quoted results from a critters.org survery that showed that 93% of readers thought $4.54 was a fair price for an ebook. That rings true to me since that is about what I’d be willing to pay without a second thought, and certainly more if I _really_ wanted it.

    I’m definitely frustrated by the downward pressure on book prices caused by people who are unwilling to work at book marketing and brand-building, content to just collect pennies for their work, yet I have considered trying out a $.99 price point, at least as a temporary sale, to see if it would give me a boost in the rankings. I know this has worked for some others, but having read both of you ladies’ experiences here, I’m now rethinking that idea…yet again!

    One crazy idea I had that would help everyone with pricing would be for Amazon to charge _something_ for publishing an ebook, like a flat fee of $50 per title. Doing this would: a) discourage people from throwing complete unedited garbage up there, b) encourage people to work at marketing, and c) make people want to charge a little more for their books. You have to sell a lot of $.99 books to make back $50.

    I doubt they could do it now, since everyone’s become accustomed to “having the right” to publish whatever they want for free (just like Zoe’s customer who felt she had the right to buy a story for less than $.89), and perhaps they wouldn’t want to, since Amazon wins even if an author only ever sells 10 copies of their book. I just wish they’d thought of it long ago.

    Anyway, I’ll be keeping a close eye on this debate to see how things play out.

    Thanks for your post,
    Maria

    • K. A. Jordan says:

      Maria,

      I understand why you’ve been looking into dropping your price. If I didn’t have my books posted in so many other markets via Smashwords – I probably would drop mine, too. It is hard to resist that kind of pressure.

      But as I was reading Konrath’s blogs – he, Zoe and others were having conversations about pricing even before the 70% increase went into effect. I firmly believe that Amazon is using the new royalty rates as incentive to writers. Most got the idea right off.

      Too many new Indies were completely clueless of what to charge. So I’ve shared the chart with the “Authonomy Crew” people I’ve hung out with for almost 2 years. I’ve already heard from a few who think the chart is very handy.

      Marketing my book is driving me nuts. It seems to take up 16 hours of my day, and I haven’t sold a book in over a month. Once I pushed the price to $2.99 I sold 4 books – then nothing. But earning a lousy $.35 per unit – and spending all day every day selling 4 units a week isn’t worth my time.

      I would really like to talk to you about marketing. Because what I’m doing isn’t working. I think that it is partially because I write women’s fiction/romance. The “Kindle boards” crowd aren’t my readers. Niether is the face book crowd I’m hooked up with. Most of my Authonomy friends read the book over a year ago, free.

      The Amazon Romance boards are hostile territory – they read so much that’s poorly written, but to the trolls “Indie” = trash. They have even started hunting down Indie writers to attack them. It is pretty freaky out there.

      In a few days I’ll be getting my first month of sales reports from the smashwords sub-markets. I’m going to wait for three months of data before I decide on what to do.

      Thanks for dropping in!

      • zoewinters says:

        hunting down the indies? What the HELL is wrong with people? You know any of that behavior can be reported to the Amazon Community Help people. If they get too abusive they’ll lose their account privileges with Amazon.

    • zoewinters says:

      I would pay a $50 listing fee at Amazon, absolutely. It would lower the crap level there also and, like you say, encourage people to charge more than 99 cents to make back their investment.

  7. K. A. Jordan says:

    @Zoe – There is definately something wrong with the trolls – that kind of bitterness and venom screams ‘mental illness’ to me. I’m sure Amazon will weed them out…I hit ‘abuse’ every place it was appropriate.

    The good thing that came out of it was the support the writer got from the others on KB. She also got a number of sales from people who were pissed at the trolls. The book is on my TBR list – just to spite the trolls.

    • zoewinters says:

      LOL, yes, it screams mental illness to me, too. Honestly I think with our diets, the pharmeceuticals people take, the lack of exercise and real human interaction, that most of the population is mentally ill. People don’t think about how all that stuff can screw your head up. And the sad part is… these people with nothing better to do than wage some crusade against indies, think they are behaving SANELY. That’s the scary part. That’s why I avoid all Amazon discussion forums now. Amazon is a cesspool of crazy.

      The one shining benefit is… when one of these people DOES happen to leave you a bad review… they tend to reveal themselves for the whackjobs they are and other readers make this face: O.o

      I routinely buy books based on bad reviews like this to spite the nasty-minded reviewer.

  8. K. A. Jordan says:

    I agree about the Amazon forums. I’ve left them for Goodreads – which so far appears to be a saner hang out.

    What I have trouble getting my head around is the connection between forums and marketing. Do I have to be on a dozen forums to market my book? I think I’d be wasting my time.

    What do you suggest? What has worked for you?

    • Zoe Winters says:

      LOL I avoid GoodReads mainly, too. There are some crazy people there also. There seem to be a lot of readers out there who have the attitude that books would be great if it weren’t for all those “pesky authors”. Damn those pesky authors!! LOL

      Anyway I never really did forums much. I did twitter, facebook, blogging, guest blogging, and commenting on other people’s blogs mostly.

      Mainly I’m just a really opinionated person and some people hate that and some people love it. I have my fans and my haters and someone said there is a T-shirt that says: “Haters make me famous”. And there is a lot of truth to that because a little bit of controversy helps get your name out there. You make some enemies in the process though, so it’s not for the faint of heart.

      • K. A. Jordan says:

        And there is a lot of truth to that because a little bit of controversy helps get your name out there. You make some enemies in the process though, so it’s not for the faint of heart.

        Too true, nothing in this business is for the faint of heart. While my dad tells me that ‘a faint heart never filled and inside straight’ my head tells me to watch my step on some of these forums. Blogs are much more fun – and now Facebook networks blogs.

        I’d rather not be controversial. I don’t have the energy I had in my 30’s. I am going to take the time to plug my 1st book on the B&N forums. The PNR is stalled at the moment. I’m looking for a table in a restaurant that doesn’t have internet – some place I can hide out for a week to get the edits finished.

        Speaking of creating a buzz – J.R. Ward is having a signing at our local bookstore today. I hear the place is going to be packed. I’m going to go to people watch – I’m curious about the interactions of writers and her fans.

        My first blog “Jordan’s Croft” gets regular hits – half my following is from the UK. Speaking of which – you may want to take a look at “Authors on Show” a UK site that has a very large following and is making a name for itself. I plug them to everyone I meet. I think that they are the wave of the future – a content site that caters to readers and writers from all over the world.

        I’ve got a few questions written up. I’ll send them to your email address in the next day or so.

        I am really enjoying this conversation.
        Kat

  9. Zoe Winters says:

    LOL Kat! I recently hit 31 and I can feel my energy for controversy flagging already! (of course as soon as I say that I’ll say something else controversial and piss someone else off!)

    Wow that’s a lot of exclamation points. And I don’t even really drink coffee.

    I LOVE J.R. Ward (well, except for a few minor buggaboos, but overall, I’m a fan!) I’m on book four of the BDB series. I get to read V’s book next. I’m experiencing them all on audiobook with my audible account.

    Me too, and can’t wait for your email, thanks!

    And I’ll bookmark that site.

    Zoe (who is still too lazy to properly log into wordpress.)

  10. K. A. Jordan says:

    I write about it here:
    http://jordanscroft.blogspot.com/2010/10/jr-ward-at-bookstore.html

    She appears from behind a curtain – makes an entrance – has a Security Guy (with tie and dark glasses.) She works the crowd – poses for pictures makes sure everyone gets their books signed. The Q&A she made a lot of big guestures when talking about the Brothers. She had all the women laughing with delight at her innuendo. She gave away at lot of ‘plots’ for the books – hints and gestures.

    I can why some of the shy writers would hate her – she really puts on a show. The fans love her and she loves them back. She had to have done a lot of Theater at one time.

    It was SO fascinating!

  11. Selena Kitt says:

    Hey, yeah, that’s eXcessica’s pricing structure.

    I know so many folks are up in arms about charging more for ebooks, but we didn’t pull that pricing structure out of thin air. The indie ebook pubs have been pricing this way for 10 years.

    Why are we trying to reinvent the wheel, kwim?

    -Selena

    • K. A. Jordan says:

      I recognise that name! Sorry to have posted it without permission – I couldn’t find the site again. It looked the same as the pricing at places like Fictionwise and Ellora’s Cave, which is why I used it.

      It is too late to ask permission – so I apologize for printing without your consent. However, I would like to continuing using this list – would that be okay?

      I have FB buddies who write very well who are looking for a price structure. This seems to hit the middle ground between Trade prices and Indie giveaways.

      I’m plugged into a network in the USA, UK and Canada – this list was critical information for a couple of people.

  12. Mark says:

    I like the $2.99 price for novels. Writers make nearly twice as much per sale as they would with a traditional publishing contract for a $7.99 mass market paperback.

    Of course writers can charge more, but it’s clear to me that on Amazon at least, $2.99 is becoming the standard price for self-pubbed novels.

    And one of the great things about that price is that it gives indie writers a pricing advantage when going up against ebooks from traditional publishers. I think that’s important.

    • K. A. Jordan says:

      For a Newbie like myself – I agree. $2.99 makes a lot of sense as a starting point.

      It’s when the writer is bringing more to the table than the average Newbie Indie – it doesn’t make sense to price yourself in the $.99 crowd.

      Cheapskates buy the $.99 books. But do they read them or do they collect ’em like cat-hoarding old women? “See, I’ve got two hundred books on this baby!” I always download the ‘freebie of the week’ to my Nook, but I rarely read them. I get free Harlequins for my smart phone – but I only read them when I’m desparate for ANYTHING to read.

      As more pros post their backlist the prices are going to go up, because the quality is going to go up. I expect PubIt! to attract a lot of writers who don’t WANT to sell their books at $.99 or $2.99.

      When Kindle = cheap crap, people are going elsewhere to read and to publish. I think that my book will sell at B&N for $3.25 better than it sells on Kindle for $2.99. I won’t know for 3 months – but I am willing to wait that long to see.

  13. Selena Kitt says:

    “I would like to continuing using this list – would that be okay?”

    Absolutely! The more writers who start pricing their books at reasonable prices, the better! I don’t agree with agency pricing ($12.99 for an ebook and $9.99 for a paperback??) but there has to be a middle ground between that and the $2.99 for a full-length novel idea. 😉

    -Selena

    • K. A. Jordan says:

      Good!
      This post is getting more hits on my other blog. People a spreading the word out. I probably should convert it to Euros – Isn’t that what they use in the UK?

      @Mark
      I have to say that the thought of pricing my novel at $.99 really chaps my ass. I’m not happy about the $3.25 it sells for on Smashwords – but I’m a newbie.

      When my PNR comes out I’m not setting it out cheap. I don’t want to sound like an id10t but I write well enough to warrant the higher prices. If I wrote Mary Sue/Barry Stew characters it would be different. However, the characters in “Let’s Do Lunch” are all well-rounded and they play important parts in the story. That kind of skill comes with years of practice – like a dozen dead novels on my hard-drive.

      However, I know that there will always be people willing to give their work away. But remember ‘the cream rises to the top.’ Better writers will be playing in the ‘big league’ while the poor writers will be sitting on the porch.

  14. K. A. Jordan says:

    This is the post with the highest hits. So I will update it.

    When the new book came out, I priced it at $3.99. This is because it has a pro-cover and was copy edited. I took the time to get it posted long before the ‘launch’ date of August 1. I knew that it would take at least a week to process and another week or even 3 three, to get the links set up.

    So far, at 8 days from the date Smashwords put it on sale, I’ve got an ISBN, and it is available on all the usual markets. (Still to populate on Smashwords’ sub-vendors.)

    After the original post I played with pricing a couple more times. Frankly, it doesn’t work to put ‘Let’s Do Lunch’ at $.99. I may get a couple of extra sales, but not enough to make up the difference. (And the lower royalty just feels so squicky – I can’t handle it.)

    Having ‘Impressive Bravado’ priced at $.99 is much better. It is a short story and selling at that price makes sense.

    Thanks to Mark for the reminder that the more work up the more sales. It has proven true – and that has kept the ‘ohgodmywritingmustsuck’ demons at bay.

  15. “Should I drop the Kindle price back to $.99 because I’m desperate to see some sales? Or, raise the price to the charts ‘market levels’ to combat the pressure for cheap/free reads?

    I don’t mean any offense but it sounds like you really need to make a game plan. It almost sounds like you had absolutely no strategy but just to write it, basically. This post sounds panicked, disjointed. It really does.

    Also, try to listen more closely to Zoe Winters, IMO. I mean, by your own admission here you only sold 4 copies per week at the 99 cent price point. That’s $1.75 a week. And then you said “oh shit” when that $1.75 was pulled from under you.

    Do you see how this sounds? I don’t think I would even want to admit that in a blog post under my own name as a writer. Seriously.

    Take your book back to a critique group for an overhaul, and when it’s been revised and upgraded to death then republish it. Then work on your marketing a lot. Maybe the cover needs to be changed.

    something has got to change in regards to your story, you can’t just toss it up online for 99 cents in 2011 and expect it to sell like hot cakes. You’ve got a million other writers vying for that same 35 cents you’re so hungry for.

    • K. A. Jordan says:

      Your right, I had no game plan. This was my first book out – and I didn’t have a clue of how to market it.

      A year later, I know more, however that still isn’t enough, to get significant sales.

      I wrote a second book – one that had all the advantages the first book lacked. A better copy editor, a better cover, yet without reviews, it languishes even worse than the first book.

      Marketing is a separate skill set. The learning curve for it is even steeper than the one for publishing.

      I can write a good story – but that’s not enough.

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