Work for Free

So I've been thinking about this a little bit: Do students ever offer to intern for FREE just to get in the door? I'm interested in going into an industry (asset management) that, outside of a few big players (Fidelity, T.Rowe, Putnam) is largely fragmented. I'm trying to hypothesize a viable backup plan if I can't land a job at one of the big shops (because the economy sucks, because I blow my stock pitch, etc, etc) In my mind, I figure that a smaller company (let’s say they have anywhere from 15-50 employees) would have virtually no risk from taking on a summer intern. I get the experience I need and boost up the resume for recruiting full-time in the following Fall. They get some free research, ideas, and grunt work – all with minimal headaches. Sure, I’d want them to spend a little time with me and have them teach me things and get some insight into what they are doing and why (causing them to spend a little bit less time on their actual work)…but hey, everybody likes to pump up their ego a bit by showing some newbie what an expert they are. I think this would be a great option for those pursuing other high finance areas as well, such as PE and VC.

Am I crazy to think that this type of opportunity is possible?

I'm interested to get the perspective from 1Y and 2Y students as well as those that work for companies that hire MBA interns. My guess is that this is more doable with a smaller company (looser HR guidelines, less decision making bodies needed, etc.).