I wrote an article back on May 11, 2011 about the new Kindle 3 Ad based version currently going for $114. I claimed the ad version was the way to go to save money, and I still agree with my decision today.

Many people didn’t like that Amazon only dropped the price $25 to display ads on the Kindle. Some people thought the price should have been $99, or even some were so absurd to suggest the Kindle should be free! In all actuality, the price has already dropped below $99, for some.

How has the price of the Kindle already dropped below $99? If you didn’t already know, the ads that are displayed on the Kindle can only be redeemed by people who own the ad-based version. Picture it as an exclusive club to get into. For instance, one ad I’ve already jumped on immediately was a $20 Amazon gift card for $10. That’s $10 I got for FREE from Amazon! Take that $10 and deduct it from the price of the Kindle ($114 – $10) and you’re already down to $104. You would not be able to get this offer if you purchased the more expensive Kindle.

Now, onto the second ad, I purchased $10 in eBooks from Amazon and got another $10 Amazon gift card! Subtract that $10 from the now $104 price ($104 – $10) and the Kindle has now cost me only $94! I am now below the $99 price range that many claimed is where the Kindle should have started at in the first place.

Now many will say, if you don’t buy these ads your Kindle is still costing you $114. However, my question to you is why WOULDN’T you jump on these ads? I mean, you know you’re already going to be purchasing eBooks in the future. So why not just pre-buy them ahead of time and get your free Amazon gift cards! Amazon has given me $20 so far in free money.

Had I paid more money for the regular Kindle, I never would have obtained $20 in Amazon gift cards for free. I’d still be buying my eBooks and throwing more money out the window.

Trust me, you won’t be disappointed in the ad based Kindle version. Especially when you get free money! Who knows, maybe over time the Kindle will eventually pay for itself and become free because great deals will continue to come in! Maybe this was Amazon’s angle the whole time?

What do you think? Let me know in the comments!