The Power of Free

Josh Kopelman has today’s Great VC Post up titled The Penny Gap.

“The truth is, scaling from $5 to $50 million is not the toughest part of a new venture – it’s getting your users to pay you anything at all. The biggest gap in any venture is that between a service that is free and one that costs a penny.   I can’t think of a single premium service that has achieved truly viral distribution.  Can you?”

He’s also drawn a few pretty (and relevant) graphs.