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Originally Posted by rlauzon
Based on what Eric Flint said in the latest Baen's Universe, they mostly look at these types of transfers as "opportunities to get our work in front of someone else's eyes". Baen may not make any money off that one, but gets someone else to try the author out.
"Try before you buy" is a tried-and-true sales technique - especially when it comes to items that are very much based on personal tastes.
At Penguicon a few years ago, John Ringo was there talking about Baen. What they were doing at the time was releasing volume 1 of a series for free as an eBook. That generated interest in the rest of the volumes - which they sold. Authors who thought that their books were done were (happily) surprised to get sizable royalty checks.
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When a book series is no longer generating all that much interest, that is a very good way to generate intertest. Because if the series is by a known author and book 1 is free, you'll get people to read book 1 and then if they like it, they'll purchase the rest thus generating revinue where there was none or not much.