Fees Will Follow
Free is not best. It's true. Especially when it comes to value.
Instapaper (a great "read later" app) is moving from a free model to a subscription model. Some people get upset about this. Some folks are unhappy anytime payment is required.
But, Instapaper provides value. It solves a problem. (I have too much to read and can't do it all at once, so I will save it to read later - and possibly send it to a friend.) It's worth paying the people who created this tool, and in so doing, they provide even more value. (Ad-free web experience, text-to-speech reading options, send-to Kindle save, etc.)
Seth has been talking about the race to the bottom for a long time.
That's not a race you want to win. Faster, cheaper, free-er is not better. Better is better. And, in this case, better is the difference between free and $2.99 a month.
Don't look for ways to charge people more money. Look for ways to serve people better and solve more problems. Fees will follow.