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Not at all. There are literally thousands and thousands of free porn sites on the web, but people still pay for it. Say what you will about the human race, but we like our porn. Same principle applies to erotica. There will always be people just looking for a free book, but there are hundreds of thousands of more people who will pay for it.
As someone who easily can get discouraged (something I'm working through currently - I believe MJ called it deserting a project due to lack of positive reinforcement), I find this very comforting. Thanks so much @GiroudJD for all the valued insight.
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