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For a reader's perspective: The last half-dozen books or so that I have bought from Amazon have all been second books in a series where the first was free and listed in the 'Free/Cheap Kindle books' thread here. I think two more where it first book was $1 and in that thread.
For giving away the short story, I can already get a reasonably sized free sample of any book, so I think that is covered, the real struggle is to get your book into my vision at some point, so that I actually look at it.
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