Ask HN: Is there a benefit to giving out free versions of web apps?

For those of you who offer a free version of your web app, is it a vital resource in attracting buyers?

Also, how did you determine wether you should offer a free version or not?

Our free plan has been an important channel for us. Not all, but most, of our paid users first tried the free plan, liked the product, and then upgraded for the larger feature set.

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