Does launching a paid tier instantly kill your early stage growth momentum?

While our product was completely free, people signed up, shared it with peers, and experimented without hesitation. But the moment we introduced our first paywall, new signups dropped off a cliff, and the growth loop we relied on completely stalled.

It made me realize that moving to monetization change user psychology from curiosity to strick skepticism overnight.

How did you handle the transition from free to paid did your growth take a major hit, and how long did it take to recover?