Abstract: To analyze the effects of advance selling discount and advance selling quantity, the demand function was found based on the customers′ strategic behavior and the network externality. The optimal advance selling quantity and advance selling condition were determined by a comparative static analysis. And the results show that the optimal advance selling quantity was affected by the market demand. Furthermore, the numerical analysis was used for describing the effects of the network externality on retailer′s advance selling discount, advance selling condition and advance selling quantity. The results show that, while the factor of network externality was higher than 0.3, the advance selling strategy benefited the retailer, and while the factor was higher than 0.6, the advance selling discount would decrease and the factor and the profit of retailer would increase. All the conclusions can be -reference for the retailer′ selling strategies.