My buddy runs a social networking site for a niche market and they run a freemium model along with ads. The one mistake they made was charging too little as th

My buddy runs a social networking site for a niche market and they run a freemium model along with ads. The one mistake they made was charging too little as the difference between charging $6/month and $15/month is not as great as they expected (they have 2 levels of paid subs). The bigger hurdle is just getting the user to pull their credit card out in the first place. So don't be afraid to charge a fair amount, if your site offers good value.