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the bottom line for me is this - in less than one year i've spent over a thousand on ebooks, 100% of them in mobi format. all of them were ebooks that cost less than the paper versions. it's highly likely that none of that will change for me in the future. i don't require $3 books - i actually chose $5, but to me the length of the ebook, popularity of the author and newness of the ebook could lead to $5.99 or more depending on the situation. i don't expect to pay $5 for a nice long, brand-new book by a popular author.
btw, not only will sales and giving away some free ebooks bring other sales - they'll get the sales/free ebooks listed on blogs and reading sites everywhere, meaning more people will read your company's name and check you out.
and remember, if you do decide to give out a few free ebooks, please please please make them the FIRST books in the series. i've several times downloaded a company's free first books in series and within only a few hours bought all the rest, and i'm definitely not alone there.
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