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When I do giveaways on my blog, the authors generally prefer to either email a copy in the format of the reader's choice (usually epub or a version for kindle), or they "gift" a kindle version through Amazon and then offer an emailed epub, or they offer a coupon for a Smashwords download. Only one author I've worked with has ever felt uncomfortable doing the Smashwords coupon (for fear it would be shared with others).
I must admit, I like any of those ways to do giveaways because it makes it easy for me and (hopefully) the author and the winner as well.
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