I am starting my own webhosting company and I was wondering which offer looks better, this is for a advertising handout at a computer flea market.

SPECIAL STARTUP OFFER:
First Month FREE!
or
Pay for 3 months, get the 4th month FREE!
or
Pay Bi-Monthly and receive a months hosting FREE!

I am worried about getting a bunch of freeloaders if I use the "first month free one", but I wish to refrain from using the dreaded "Conditions Apply" statement, and enforcing a contract for a certain number of months.

I wish to create a large influx of customers for a short time period to offset my various costs, I want to try and stretch my capital as far as possible without it being dissolved by rent.

Or should I take it slow, and gain customers one by one? and sacrifice a bit of capital.

If you do the first month free thing, Ask them for their credit card numbers, that might help keep the free loaders out. On the otherhand not as many people will sign up.

Go with discounts rather than FREE month hosting. The problem with that is most people that signup with your first month free will most likely leave after that. With discounts they will signup b/c they are serious.

go with the discounts, the free first month may attract spammers etc who will eat up all your bandwidth and leave before you can bill them