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Just caught wind of a great article in Wired: "Free! Why $0.00 Is the Future of Business" We're debating this very question with a product we're developing. One quote that stands out for me: "..free is not quite as simple — or as stupid — as it sounds. Just because products are free doesn't mean that someone, somewhere, isn't making huge gobs of money. [snip] To follow the money, you have to shift from a basic view of a market as a matching of two parties — buyers and sellers — to a broader sense of an ecosystem with many parties, only some of which exchange cash."