Free distribution of ebooks -- revenue models?

Everyone,

Since 1994 I've run a quite modest ebook publishing business. Since
2000 the main purpose behind the publishing business has been to
maintain first-hand publishing experience to aid with standards
development and to undertake various entrepreneurial digital
publishing-related ventures.

Up to now I've followed the "standard" model of placing my titles with
various ebook resellers and retailers such as ebooks.com, Amazon, LSI,
Fictionwise, etc. They wholesale/retail the title, I get the royalty
check (such as it is...)

For a number of reasons I am now interested in exploring some type of
"give away" model. That is, I freely distribute the ebook version
using viral marketing techniques (blog, Facebook, etc.), and then
somehow leverage that to develop interest and from that a revenue
stream. I'm not expecting major revenue from doing this for my current
titles -- but enough to make the viral marketing effort worthwhile.

[My wife has two literary novel manuscripts (one of which over ten
literary agents have told her is first-rate but is way too long)
which we are pondering publishing using this approach. However, my
wife is still oriented towards the traditional route of finding a
major publisher, via an agent, to publish her books.)

Variations of this general model have worked for others, notably Cory
Doctorow, who freely distributes the digital version and derives
revenue from hardcover sales based on word-of-mouth.

With regards to revenue models, I see these (which can all be used
simultaneously):

1) The Cory Doctorow approach -- develop a name and following from
   viral marketing of the free digital edition. Then sell soft and
   hardcover editions via Amazon, etc. I do see offering a limited
   (numbered) edition this way once a following is gained -- build
   a list of those who say they will buy a copy when available.

2) Add a PayPal link -- ask the reader to send in some money if they
   like the book. (I don't expect much this way, but hey...)

3) Added banner advertising, if possible -- some clickable banners are
   variously placed in the ebook, and when clicked on to bring up the
   target web site in their web browser (the links can be added to
   ePub and PDF), will earn a few pennies. This may require some
   development with advertisers -- not exactly sure how it would work
   in practice.

I'd like your frank comments on the above and if there any others you
can think of...

Thanks!

Jon Noring




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