The trick to properly implementing a free or freemium business model is to ensure that the productservice you are giving away for free is of high value to the customer, which will lead to high customer satisfaction and the likelihood that they will tell others about your productservice, leading to a viral effect. The temptation is often to stop at this and take away valuable features that would make the product interesting and valuable.
The entrepreneurs and executives I work with fall into australia mobile database one of two camps: those who get this, and those who don't. The smart ones who get this realize that the single largest expense in a typical business is sales and marketing, and recognize that offering a free productservice is a very smart way to acquire customers at a low cost, and then be able to sell them in a different way.
Another powerful effect of using a free strategy is that it often results in a much larger base of customers using the free product who become advocates for your company. This expanded footprint or market share can have a huge impact on the price an acquirer or investor is willing to pay for your company because they recognize that even if these customers are not yet monetized, they represent a huge potential for future monetization. Twitter and Facebook are two perfect examples of this.