Players are more likely to pay if they get more advantages out of it, but players who can't pay or can't pay enough to stay competitive won't really have an incentive to play.
The game has to remain playable regardless of the level of monetary contributions or else it ceases to be about gameplay and turns into a bidding war. While that might give you a couple high income players, I doubt it's feasible in the long run.
I used to play a MUD by a certain well-known developer in the MUD community. It was advertised as free-to-play, pay-for-perks, but its scheme had two major flaws:
The power plateau was ridiculously high, it took thousands of dollars AND months of playing to reach it, per character.
The baseline character power level, at which the game was by design balanced required an investment of around $200-300. There was no segregation between paying and non-paying players, both competed in the same game world. This put non-paying players at a big disadvantage unless they just wanted to use the game as a glorified chat-room. The developers used to counter this argument on message boards saying that players can get the perks through contests and in-game currency. However contests were not frequent enough and too competitive to make much of a difference (usually the same clique of players won). And buying them for in-game currency required weeks of grinding quests (mere knowledge of which required a lot of gameplay beforehand) competitively against other players with similar goals (because the game offered no instancing).
Was the game successful? Moderately, they're making some money, they've made quite a lot of a couple selected players with deep pockets. But ultimately there never was enough players to keep the game from feeling empty, usually just a couple players per character class at any given time. I heard their other games using the same model were more successful though, on the order of 500 players logged in on the most popular one. But I can't help but wonder what kind of numbers they could have raised if the price for playing the game competitively was an order of magnitude lower. Their MUDs are actually worth paying for, compared to all the uninspired DIKU clones, just not that much.
I regret sinking $200 into it before I realized I just can't compete without buying the equivalent of a used car in skills and virtual items.