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Originally Posted by Hellmark
And I agree.
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And even though I agree with the broader points you've made, I will insert a little caveat:
For the right publisher, with the right price point and a good public relations person, I *could* see this making sense. I'd look at it as a chance to get a fair amount of free publicity for backlist titles that've already been in paperback for some time. Make the offer to those who own the book already in any form, hardcover or paper, no matter whether they bought it used or new. Don't even bother trying to verify ownership -- make it an honor system.
The point being that it's more viable economically if you look at it as squeezing extra sales and publicity out of a mostly-dry well. And if you succeed wildly, great, maybe think about applying it to frontlist titles as well.
Of course, all of that is easier to say than to convince people to try it! Heck, I'm in publishing and I'm not sure it would work for me!