"Jim Baen and I set up the Free Library about a year and half ago. Leaving aside the various political and philosophical issues, which I've addressed elsewhere, the premise behind the Library had a practical component as well. In brief, that in relative terms an author will gain, not lose, by having titles in the Library.
What I mean by "relative" is simply this: overall, an author is far more likely to increase sales than to lose them. Or, to put it more accurately, exposure in the Library will generate more sales than it will lose.

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What the Free Library provides-as do traditional libraries, or simply the old familiar phenomenon of friends lending each other books-is a way for people to investigate a new author for free, before they plunk down any money.

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