In some other world or century you would be able to offer a free basic service, get loads of customers and gradually convert most of them to the paid premium service. The concept sounds like a winner. However it does not always work that way in today’s real world.
The following article offers a true story of an entrepreneur – Ruben Gamez – who offered his service for free hoping to convert many to the paid version. After weeks of testing he realized that the number of paid customers declined. He dropped the free offer and was stunned by the result. He gained more paid customers. How much more? Take a look at the article: