Step 2. Give it away for free
Step 3. Once all your competitors go out of business, see step 4
Step 4. Introduce revenue generators... advertising, premium models, upsells, crosssells, downsells.
It's been done before, and it can - and will - be done again.
Want an example? PlentyOfFish.com
The world's biggest dating site, with the most traffic and users.
Markus' success was down to this same formula. He has openly admitted it in several interviews.
He started out by offering what everyone else was - and still is - charging for. Now he's a multi millionaire, and generates revenue through contextual advertising.
Irresistible, in demand product for free = competitors cannot compete
Less competition = more traffic/market share
More traffic/market share = lots of money.