Free Plan vs Paid Plan

Melih Birim
8 replies
Hello everyone. All of competitors are giving free plans so we do. But the problem is I can't really find the vertical I should be focusing on. What do you think, after onboarding more than 6000 users on our base should I remove Free Plan ? Regards.


Bogomil Shopov - Бого
I'll wont remove the free plan, but try to find what stops your customers from upgrading it. Maybe you give them more that you should or the price is the problem or something else. There is no aneasy answer to this question.
Melih Birim
@bogomep I think best options is to limit the free tier little bit and give the free tier for X per year :)
Any specific reason you capped at 6000 users? I think having a free plan is good for every SaaS product, It just boosts your user onboarding and it's on you to provide value so that they upgrade to a paid plan.
Melih Birim
@imtiyaz922 There is not any reason but I hit 6k a week ago and the conversion rate to paid subscribers is below what I was thinking.
Angi Bowman
How do your free plan restrictions compare to that of your competitors? What about pricing? Free plans are great, and my company has had a lot of success incorporating a limited free plan into our pricing strategy. That being said, there should be a clear reason to upgrade. Explore how your users are utilizing your product and what that free cap should be. For £5/seat, the jump from free to paid isn't budget-busting, but you may need to restrict your free plan so that there is a motivator to upgrade.
Melih Birim
@lucky__angi You are definetly right about free plans are great. I will create a value proposition to upgrade. To me it seems free plan is much more generous than competitors.
Daniel Engels
a free plan is a great way to earn traction. If your todays's issue is growth rather than profit margin, why wouldn't you use the free plan as leverage?
Melih Birim
@daniel_engels There is a ridiculous trend in free users NPS. They don't return if they don't pay. And for early adapters, they always ask for more for less. I think it should be the balance of Price And Performance metrics