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Free is a great model; it scales very well for the end user. Problem is, a business built on free can have some real trouble making a profit, or in some cases even surviving, as it tries to evolve the model from the happy place that attracted all those users in the first place. Twitter is a grand example of this. Arguably one of the most successful free service models in the past few years, Twitter has struggled mightily with every suggested way to turn a profit though they have tens of millions of users.
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