A question put to all internet businesses starting now is whether to offer their product free. In the present economy slump, free and freemium are more than buzzwords. They are fast becoming business models meant for speeding entry into frozen markets. The dilemma is that in offering the product for free, the new company must bear the cost of development and maintenance until revenue starts from other channels. This must be fueled by a massive growth of users, otherwise the profit remains zero and the profitability remains zero as well.

David Heinemeier Hansson gave the below discourse on his strong belief that companies should charge customers for use of good products. Though the speech was given before the economy completely toppled, it still creates a strong argument for charging for products in a market with others may be offering something not as good for free.