There is a free tier now; we'll be building out the features of a premium tier ($7.99 / month) for other features. Since data is meant to be private and never shared, we're following a subscription model.
Quick thought: $7.99 looks like it should be the highest tier in a four tier scheme (free, a dollar or two, way less than $7.99, and $7.99) since you're talking about per month prices. Even then the price looks steep to me (currency conversion and other factors considered).
I mean, the app is meant to help organize your contacts, is it not?
If I see an app ask for my contact data without good reason, I'm immediately out in most cases. But they've got a good reason: it's what the app is supposed to do...
The app is "a personal CRM that reminds you to keep in touch". There are people that I want to keep in touch with (which I can add manually), and the rest of my contact list, who don't need any organizing.