When given a choice between a free and paid version of a particular product or service, it’s not rocket science to assume that most people will opt for the free version because its free.

Many online businesses use the free model and make the base service free, but for added services users are expected to pay a small premium. Some may even provide a free trial period whereby the user is given full access to the product for a period (usually between 14 to 30 days) with the hope that at the expiration of the trial period they would have had sufficient time to try out the service and would not mind paying so as to continue using the service.

Offering a free option is a strategy that has worked well for many companies like Skype, Twitter, Freshbooks, etc. These companies use the free option as a marketing strategy to get a large user base fast. But does that mean that it will work for your online business?

The disadvantage of providing a free option is that the over time, the cost of providing support to your free users will be become too high and eat into any little profit the business might make. Also there is the possibility that the free users will probably never opt to becoming paying customers.

Here is a nice list of articles to help you decide on whether to use the free or paid option for your online business:

The Great Freemium vs Free Trial Debate

Is the Freemium Model Sustainable?

How to Make the Freemium Model Work

The Complete Guide To Freemium Business Models

Freemium vs Paid: Is the Traditional B2B Model Dead?

If you do decide to offer your product for free you must remember the golden rule of business which says that you must make more money than you spend.