While I understand the points being raised, I disagree with the proffered solution 1) Some folks build a small SaaS product to sharpen their skills, learn new

While I understand the points being raised, I disagree with the proffered solution 1) Some folks build a small SaaS product to sharpen their skills, learn new things and as a strategy to position themselves for a higher paying job (they can put it on their resume and discuss it during interviews) 2) It also depends on your target market. Some folks convert to paying customers (huge paying customers) because they have experimented extensively with your product. Take Google App Engine (GAE)- folks use it extensively for small websites, and then when they have something they think can be commercialized, they become paying customers. 3) You can do like GAE and have a daily free quota which is basically a freemium model 4) Regarding the complaint about the headache of supporting free customers - you can make it clear that the free plan doesn't come with support or it comes with limited support