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9 Comments

πŸ’° What pricing model to use for your product?

I'm torn between using freemium vs using a free trial for my product.

I need help from people who have already launched because this is my first launch.

Thanks for you help.

on July 20, 2021
  1. 4

    Honestly this depends a lot on your product, market and competitors. I found this article to be a very helpful read on the topic - https://www.lennysnewsletter.com/p/saas-pricing-strategy
    "Freemium is an acquisition model, not a part of pricing"

    1. 3

      Not the OP, but wanted to say thank you for that link. Going to digest that today!

      I also found this quite useful:
      https://hackernoon.com/freemium-vs-free-trial-vs-hybrid-customer-acquisition-model-b8cd3287f9f0

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        Thanks for sharing the link. πŸ™

    2. 1

      Thanks for sharing the link. I'll definitely am going to look deep into into.

    3. 1

      This is very true - freemium is NOT a pricing model.

  2. 2

    +1 to @nemz44 and @craigzingerline's comments: what's the product, who are the users, and what does your acquisition funnel above "started using the product" look like?

    From my own experience, free trials work slightly better for business or professional customers, and freemium works slightly better for consumers. For Quail (a B2B point-of-sale app) I've tried both, and had much more success with a generous free trial + paid plans; business like paying for stuff, because then they feel like they can rely on it. For Sandpiper (a B2C personal inventory tracking app) I use a mix of both: a generous free tier, plus a 30-day free trial once you exceed it. By the time users hit the end of that trial they're usually so invested in using the app that I don't have to do any extra work to convert them!

    1. 1

      Wow, thanks for sharing the information, I'm currently doing free trial and simple pro upgrade after 14 days of usage.

      How to decide on the number of days ? Is there a framework or should I go for A/B test ?

  3. 2

    If you have a constraint that the user bumps up against that is a natural trigger point between free and paid, then use freemium. If you go this route, the product needs to do a lot of the heavy work on conversions. This is classic product led growth.

    If you are just looking to drive as many folks into the product as possible, then a free trial may enable you to not leverage those same constraints and provide 100% of the product value, but at some point that ends unless the user converts.

    Both can work and both can fail. If you send more info I'm happy to take a look.

  4. 2

    I've put some videos together on YouTube helping early founders with their pricing on launch.

    To @nemz44 's point, can you share a little more about your product?

    That will help me point you in the right direction. Albeit, pricing is a little bit more of an art than a hard science at the early launch stages.

    If there's one piece of wisdom I can share with you it's that just because you price at x$ on day 1 of a launch, doesn't mean you can't increase or decrease that price a few days later! You're not stuck!

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      This is the website Aurelio. I'm currently using a 14 day trial after which it is $20 per month. Is there a better way ?