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You see, crooks can register a domain name just as easy as you or I can. So only "REAL" way to earn trust and build credibility is one customer or client at a time.
Although you may get more business faster by registering a domain name, you may not also. The time to register a domain name is when you have proven that there is a real market for your products or service and you want to make it easy for people to find you on web. The reason that so many dot com's go belly up is because they are spending money on web hosting, and paying for advertising to unproven markets.
So if you are new at running a business online go ahead and save yourself a buck or two during research & development stage in building your business by using free services. I can point to many successful online business owners that got started in this manner. As a matter of fact I know of two that have never registered a domain name and they make their living using just email.
So now you see why I question people when they say, "Free sites do not build trust and credibility." If people are truly interested in becoming your clients or customers one of last things that they would want to know is why you are using a free web site. To see how a free web site don't have to look free, take a look at my site by clicking on link below.