Quoted from epthegeek:This is why Josh suggested taking the 'fee' for IFPA out of the winners pockets, leaving whatever entry fee there was originally alone. Then the ones 'paying' for it are the ones who might get it back in the end. The whole 'it's a tax on the lesser players' only occurs if you let it.
As a tournament director in a new city where we are the first monthly tournament, I opted to run a free tournament to generate interest. In this case, I don't have the option to take the fee out of the prize pool. I get what you are saying but it doesn't apply in all scenarios.