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Free towards payment

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The best thing is to learn something for free, let them get used to it and then push them to the paid service. This is also the principle in providing well-known shareware or demo programs that can be downloaded free of charge on the net. The user downloads the demo, or gets the time or scope of the limited application, then becomes accustomed to it and is more accessible to buy a paid version. A bit like this also works where the customer has a higher demand from the beginning. But here's a logical shift to better service quality.
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It can only work for a while. But it's totally inappropriate for a business. Not only does it spoil its image, but also its ability to act. Business needs much better and more perfectly suited for example VPS, or straight real dedicated, or completely best managed server.