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I've done very well with #2. I wrote the draft version of my series as a web serial and did quite well with donations and advertising. When it became painfully clear that I could not sustain it as a serial from a writing perspective, I sold pre-sale packages, used the money to hire an editor, cover artist and typographer, and put out the first of what will be a series of books. Part of my promotion strategy is to RE-serialize book one, two segments at week, each about a thousand words. I'm hoping when it's done I'll have book two ready to go. It'll be serialized just the same way.
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