My Favorite Business Model. Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc, then offer premium priced value added services or an enhanced version of your service to your customer base.
Examples: Skype – basic in network voice is free, out of network calling is a premium service Flickr – a handful of pictures a month is free, heavy users convert to Pro. Welcome to Lift :) Thams & Nyås Management AB. Business Model Canvas chapter design.