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I agree that the Baen Free Library model does work particularly well for authors with series, though I think it would also work well for any author with more than, say, 3-5 books. The older books are often out of print anyway, so the author can't get any sales from them, and some authors could probably start trying to sell ebook versions of their out of print inventory on their own, but why get into that mess, if Baen will publicize them-- and sell the newer books?
I've been trying to talk Steven Brust into looking into the Tor-Baen deal, now that it seems to be on again. He's got 10 books in the Vlad Taltos series, plus 5 volumes of the "Kaavren Romances." If he were to give away Jhereg and The Phoenix Guards through the Baen Free Library, and offer the rest of his volumes for sale there, I feel pretty confident that his work would sell quite well in that venue.
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