So how do you make money? It's so simple. I can almost bet that the Quake Live Team would be making MUCH MORE CASH if they created a "Cash Shop" type payment system.
For instance, instead of offering Premium Accounts and dividing the limited community, start to create the following and launch them via cash shop. People will spend money on it:
Purchasable Player Character Models
Purchasable Weapon Skins
Purchasable Taunts and Animations, e.g., Tea-Bagging, Middle-Finger.
Purchasable Theme Songs that can are played at the end of the game by the highest fragger on the winning team.
Purchasable Character Name Animations or Color