Hold on. Just two points. And Richard Stallman says it better than I can.
First, "Free Software is free as in freedom, not as in beer."
Second, there are the four freedoms:
http://www.gnu.org/philosophy/free-sw.html
Or freedom to run, copy, distribute and change software. When I first started running Linux I certainly knew how to compile programs but I did not have a CD burner, so I went down to Staples and bought myself a copy of Red Hat Linux for forty bucks, and considered it well-spent (this was less than half what M$ charged at the time. I went through two upgrades before Red Hat stopped selling their desktop commercially, then bought slackware for forty bucks-- and got a computer with a CD burner. So yes, people can and will charge you for it and it is appropriate.
When the GNU Software Project got its start, most serious computing was still done in offices by groups which could afford to pay staffs of programmers. The older guys remembered when software and hardware came from the same vendor, and all the hassles this resulted in. UNIX had changed that, and with the academic license that created BSD you had very widespread sharing of code for things like Bill Joy's vi. In essence, you can sell Open Source Code and the things you would be expected to make money off are trademarks, copyright and consulting. If you use GPL'd material and don't make the source code available you can be liable for statutory Copyright Infringement damages (which start at $750) plus:
http://lawandlifesiliconvalley.com/blog/?cat=10
But you CAN make money off this stuff. One of Red Hat's founders bought the Hamilton Tiger-Cats Football Team
http://en.wikipedia.org/wiki/Bob_Young_(businessman)
And Red Hat is doing very well, off consulting copyright and trademark. If you want free Red Hat software, go to CentOS or White Box:
http://www.centos.org
http://www.whiteboxlinux.org
They can be very generous with their trademarks:
http://lwn.net/Articles/349964/
But they are doing very well. They don't HAVE to be as big as Microsoft. And people talk about Oracle buying them as if it were a done deal -- but of course Oracle hasn't made an offer yet and the EU might have problems with it as they do with their purchase of Sun Microsystems.
It costs almost nothing to distribute Open Source Code. Open Source Binaries too, but nobody says you can't charge for binaries, and that is the point. Costs get held down by the people who will distribute binaries for free, however value-added packages will attract people period. Klaus Knopper is a computer consultant in Germany whose Knoppix Live CD has made him famous. So he gets lots of work.