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5 Lessons Learned After Removing and Bringing Back Our Free Plan

The debate over offering a free plan versus a free trial has been ongoing among companies for some time. We at ProdCamp found ourselves grappling with this issue a couple of years ago, before the widespread popularity of product-led growth (PLG). We had several discussions about the impact of a free plan on customers' willingness to pay and demonstrate commitment. When testing the hypothesis for our new product, we didn't want to fall into the trap of attracting curious early adopters who had no long-term intent to use the product.

When we first launched on Product Hunt, we only had a working prototype and no paid option available. Despite this, we received a lot of feedback and used it to iterate on the product. However, we soon realized that some users didn't intend to use the product because they didn't have a need for it at the time. This made us reevaluate our priorities and shift our focus to features that were in demand, rather than wasting time on something that nobody wanted. This prioritization also led us to get rid of the free plan, as we realized that it was taking up valuable resources and distracting us from developing features that paying customers actually wanted. By making this difficult decision, we were able to focus on delivering value to our paying customers and ultimately grow our business.

After removing the free plan and experimenting with both options, we eventually decided to bring it back. Here are the five lessons we learned in the process:

  1. The trial period is not enough.
    People want to explore a product at their own pace without time constraints. A free plan allows them to do so, increasing the chances of converting them to paid customers.

  2. Fewer signups made it easier to distinguish signal from noise.
    With fewer signups, we had fewer people leaving feedback on what we should work on. This helped us keep our focus on the features that mattered most.

  3. A reverse trial helps reengage customers.
    If someone had tried the product but didn't convert to a paid plan, offering a free plan can lower the barrier of re-engaging with them and reminding them of the product's value.

  4. A lack of a free plan led to fewer signups.
    People who don't have the budget approved for a product may never sign up if they don't have the option to try it for free. A free plan attracts potential customers who are not yet ready to pay, but may become loyal customers in the future.

  5. The Free plan is an acquisition channel.
    The Free plan can be a valuable tool for lead acquisition, helping to fill TOFU (the top of your funnel) with potential customers who can be nurtured and eventually converted to paid plans.

It's important to note that a free plan is not a replacement for low-cost subscriptions. Free plans usually offer some of the product's functionality for free, but customers who need more features will eventually need to upgrade to a paid plan.

In conclusion, while a free plan may not work for every business, it's worth considering the benefits it can bring, such as increased signups, customer engagement, and feedback. By experimenting with different options, you can find the right balance between a free plan and paid plans that work best for your business.

We're excited to announce that we're launching the ProdCamp Free plan this Friday on Product Hunt, your support is very much appreciated and will help us. 🙌

  1. 2

    Very informative. Thanks!

  2. 2

    Hi, we at GeneratorLanding.com do not offer FREE plans. We only have paid plans. The reason why is our product requieres some commitment and money is the best gateway. Users who pay are really commit to get their landing page done and working. Of course we need to market our product a lot to make it easy to understand and to confirm is the right choice. Of course, by law, we need to offer a 14 day return policy. This is good enough for users to pay, try and if it is not working, ask for a return.

    We think free can work when the setup is instant and the results are very fast.
    If the process takes a while (like in our case), you need good users. For us the minimum process is:

    • Create your product
    • Create your buyer persona
    • Create your landing page
    • Launch
    • Create some ads

    This process can be fast, but takes a few days for sure.
    Thank you for sharing.

    1. 1

      Thanks!
      In my experience, if the onboarding process is not super simple and it's hard to get value right away, only users with high intent will become your users. Nevertheless, those who are not ready yet might get back to you when the time is right. And in case of no free plan, they will never remember you and will start googling. If you're not in the top rankings, you might be missing out. I don't argue with your position, just bringing another POV.

  3. 1

    I found this post to be incredibly insightful and well-structured.
    It's interesting to see how you navigated the challenges of removing and reintroducing the free plan for your product.
    The lessons you've shared will undoubtedly serve as valuable guidance for fellow entrepreneurs and indie hackers.

    1. 1

      We're re-introducing it today on ProductHunt. Soon we'll be validating our assumptions based on data.

  4. 1

    Great post. This has been a point of discussion at Supademo

    The decision to keep or remove a free plan can be especially tough in the early startup days, where there isn't enough feature segmentation or discernible difference between free and paid plans.

    If the core value of your product is rooted in usage, this becomes easier. But harder for traditional non-usage-based product offerings.

    When you have a free offering that is so good, you need to think of other creative levers to encourage folks to upgrade.

    1. 1

      Totally agree. There are pros and cons of course, the free plan is not for all businesses, in some cases, it might hurt and in some businesses, it just doesn't make sense to have it.

  5. 1

    In general, using a free trial or premium has its own benefits. For example, if we use it for free, we have to see ads in return. Meanwhile, paying will help us have the best experience possible right? This is similar to the experience on elastic man. Whether using free trail or premium, there are pros and cons for both businesses and users. Therefore, I think which package to use will depend on the user's needs and finances. Anyway congratulations and welcome to your ProdCamp Free.

    1. 1

      Just checked Elastic man, very cool!

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