Jason Fried’s business model speech gives some fairly blunt advice to small business hopefuls. He uses the analogy of running your company like a drug dealer would.
What he means by this is to offer the customer a taste for free and then start charging once they are hooked. This is a technique that bakeries and grocery stores will often use, but he feels isn’t utilized enough with web companies. Too many companies on the Internet aren’t making money because they offer its services for free.
This business model speech may use a taboo and humorous comparison, but it certainly holds useful information—at least for Internet companies. He relates this tact to his company 37signals, which he says offers some free stuff while charging for most.