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Entrepreneur -- I’ve always viewed zero as a special number. You can add as many zeros as you want in a sequence, and the end result is still zero. You can multiply any number by zero and you get zero. If you divide a number by zero, you get a spirited debate among mathematicians. 

The concept of zero has marveled mathematicians and philosophers alike, but businesses can also take something away from its unique properties. That’s because something magical happens when a price falls to zero -- all of a sudden, demand rises to infinity.

For software companies and startups that offer their services over the Internet, zero or “free” should be a central consideration in your business model. It was for me when I founded Wattpad, and it continues to be one of the core reasons we remain so successful today. Here are a few things to zero in on when examining this model.

Related: 5 Tips for Setting Your Optimum Price

1. Rapid user adoption

When Microsoft announced in August that its new edition of Windows 10 had hit 75 million downloads in its first month, many people reacted with surprise. After all, it took Microsoft six months to hit 100 million downloads for its previous release of Windows 8.

What was so different this time? What made this launch so special? The answer lies in the number zero.

By offering Windows 10 for free, Microsoft was able to capitalize on a wider audience of users and seed early interest for its operating system with developers. Similarly, when businesses offer something for free, they can speed up customer acquisition and build a user base much more rapidly.

Remember that there are many factors that prevent people from adopting a product or service -- price being one of them. By offering something for free, you completely eliminate a common question consumers have when deciding to try a new product -- “Should I pay for this?” 

Read the rest of the story here: http://www.entrepreneur.com/article/253418

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