I'm not a published writer but I can't help but think that it will increase sales for those who sell at Smashwords in the long run. I mean say a given writer has their work at $4.99/book usually and is an unknown to a reader who goes there. And they set one of their books at $0.00 with the coupon this week. So a new potential customer picks up that book and reads it. They like it, and want more by the same author. A person is more likely to buy from an author whose work they've sampled (traditionally via library loan or borrowing a friends book) than one whose work they've never had access to before. At least that's how I see it.
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