Therein lies the rub, but if you are turning a small, but real profit, and you then need a cash infusion you’ll retain far more control if you already have proved you can make money.
Been there, done that and no, you're wrong. You won't find any investors if there is already a very well funded competitor that gives away the same product. They will spoil both the market and your funding chances. You can only get that funding before such an entity appears, afterwards it's a matter of patience until they inevitably self destruct.
