This makes zero sense to me. Apparently you can get more than the 35% cut that Independent Authors get from the Kindle Store.
By going through SmashWords.
SmashWords say on their blog that they will pay Authors and Publishers 42.5% of the Kindle Store list price –
Smashwords will pay authors and publishers 42.5 percent of the digital list price (set by the author) for book sales through Amazon.
The rate is higher than what many ebook authors can receive on their own if they publish direct with Amazon.