I did the first book free, followed by book 2-4 costing $2.99. The free book went wild, when it was mentioned on some blog some where (still not sure why) and that drove sales of book 2, and now 3. I do not think I would be getting checks from Amazon every month now with out that first book... which was my only book for a long while and has always been free.
I see it as marketing.
I am like most readers in that I am unlikely to buy a completely unknown book. However if it looks interesting and is free? I have found plenty of new authors that way AND told others about those authors. I think is wise for a completely unknown author to put out a book that is a good solid story/etc, for free. FAR more people will download said book then read it (even this thread has people like that in it
) but some will, and if your stuff is good that will seed your fan base.
That is just my take. It might be hard to give away 100's of hours of your work in the form of a book, but if you want to be in this business (or any) you need to think long term.