Actually, that is standard practice in the mainstream business world.
One way a company gets private testers is by giving them a free product
for their help, or give them a rather big discount so that he/she gets a
good deal out of the testing process. Plus you can't really fully test a
product unless you actually give them a fully working and registered
product before final release to evaluate it.
It is one thing to give say 10 people a fully functional product for
free for testing purposes, and quite another to give everyone a free
copy for testing purposes and then ask for money for it after testing is
over. Many People will keep the test version you gave them and forgo
paying for the 1.0 upgrade. So it isn't exactly financially feasible or
realistic to give everyone a fully functional product and demand money
for it after you determine testing is complete. So in a case like that
it is better to give a private test team 10 copies of the full product
to test, and sell it once the final product is determined to be ready
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