What if the gift total for a title is <$20?
What if gifts can't be found by an author?

Uncollected Gifts

If the gifts for a title are uncollected for 2 years, they become probabilistic payments.

What does that mean?

It means that the author receives a fair chance to win a prize, in this case $500.

Fair Chance to Win

Mathematically, a Fair Chance = TOTAL UNCOLLECTED GIFTS FOR THE TITLE/$500.

A random drawing is done by AE's software, using this fair chance, and then:

  • if the author wins, AE finds her and pays her $500, minus transaction costs.
  • if the author loses, the balance goes to $0 for the title.

Most People Don't Like This Way to Pay

It's disorienting.

The Most Efficient Way to Pay

But, this method of payment is the most efficient way to transact small payments.

So, AE is trying it.

Example

Imagine you’re Margaret Atwood and Sally gives you $10 for “Handmades Tail by Atwood.”

You can’t find the $10 because Sally entered a misspelling of your book, The Handmaid’s Tale.

The $10 is associated with “Handmades Tail by Atwood” in AE’s database.

So: at the expiration of 2 years, AE gives you a fair chance to win $500.

Your Fair Chance = TOTAL UNCOLLECTED GIFTS FOR THE TITLE/$500.

In this case, $10/$500 = 1/50.

You have a 1/50 chance of winning $500.

AE spins a pseudo-random number generator to determine whether you win or lose.

If you lose, the amount you’re owed for this misspelled title goes to $0.

If you win, AE finds you and pays you $500, minus transaction costs.

Author Must Be Contactable

This method, a.k.a, the expected value payment method, works for any amount owed.

But, the author must be contactable to get paid the $500 prize.

What if AE can’t find the author?

In this case, AE keeps the $500 for software development for all authors.

What if this payment method is deemed illegal?

This payment method is not an illegal lottery because authors don't provide consideration for the chance to win. The money is not theirs; it's considered uncollectable.

That said, law enforcement authorities may differ with this interpretation. If law enforcement authorities object to this method, AE will refund the gifts to the gifters' credit cards, minus transaction costs.

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