A must read: http://davidgaughran.wordpress.com/2014/07/20/kindle-unlimited-the-key-questions/.
My thoughts: I’m going to have to stand down and wait to see what shakes out after the first month. I am concerned on the impact this will have on the perma-free strategy that has of late been so successful for me and Bookbub as the one truly effective means of promotion, and I abhor the strong-arm of the exclusivity requirement on e-vendors, readers, and writers/publishers/middlemen. I think this may be a cool tool for viability of shorts, and I might pull my The Jumbie House down elsewhere and test it in KU, just for grins. It’s 99 cents or free everywhere, so @$2 per borrow would be a raise for it, and since it’s a short, readers might have positive feelings about it as part of their subscription, instead of feeling ripped off that it’s not novel-length. In the end, I need to sell books, and I will revise strategy in whatever way it seems best does that.
Pamela
Pamela Fagan Hutchins, President of Houston Writers Guild, is an 
employment attorney and workplace investigator by day who by night writes award-winning and bestselling romantic mysteries (perma-freeSaving Grace, Leaving Annalise, Finding Harmony) and hilarious nonfiction (How to Screw Up Your Kids, What Kind of Loser Indie Publishes?, and others). She is passionate about great writing and smart authorpreneurship. She also leaps medium-tall buildings in a single bound, if she gets a good running start. Visit her website http://pamelahutchins.com, or follow her on Facebook http://facebook.com/pamela.fagan.hutchins.author.
I am really not sure which way this thing will go. There is certainly reason to be very concerned, AND, it is possible that it might not be as bad as we all think it might be….. I hope that made sense :).