BitTorrent has emerged as a very popular peer-topeer file sharing system, which uses an embedded set of incentive mechanisms to encourage contribution and prevent free-riding. However, the capability BitTorrent has of preventing free-riding needs further study. In this paper, we present a fluid model with two different classes of peers to capture the effect of free-riding on BitTorrent-like systems. With the model, we find that BitTorrent?s incentive mechanism is successful in preventing free-riding in a system without seeds, but may not succeed in producing a disincentive for free-riding in a system with a high number of seeds. The reason for this is that BitTorrent does not employ an effective mechanisms for seeds to effectively guard against free-riding. Therefore, we propose a seed bandwidth allocation strategy for the BitTorrent system to reduce the effect of seeds on free-riding. Finally, simulation results are given, which validate what we have found in our analysis and demonstrate the effectiveness of the proposed strategy.