The Opportunities And Dangers Of The Most Powerful Startup Pricing Strategy: Free

In a world vastly abundant with examples of free business models – either freemium or ad-supported, understanding the value of the free pricing strategy seems to come very intuitively to most startup founders.

That said, behind the surface, there are important factors that need careful consideration when you are building your startup pricing strategy. The zero price tag has strong psychological effects on your clients, and in order to make educated decisions as a founder, you need to understand those effects.

Why is a Free Pricing Strategy a Great Opportunity for new Products?

In 2007, behavioral economist Dan Ariely, author of the book Predictably Irrational, co-authored

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