From Freemium to Paid, to the cover of Hacker Monthly. The Bidsketch story.

I actually found the related article more interesting about how his conversion numbers shot up when he dropped the free plan.

http://www.softwarebyrob.com/2010/08/18/why-free-plans-dont-...

However I always wonder, is having a good chunk of free users in the beginning a necessity to help spread word of mouth and get bloggers talking which improves your google rank down the road.

I agree, the related article adds a lot. Having free users is only cool if you can both; afford it and have it add to your bottom line. But I think the old-fashioned idea of receiving income for delivering value, should make a prompt comeback.