Is offering a lower-tier pricing plan actually costing you revenue?

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When we launched, we added a cheap $9/month tier thinking it would lower the barrier to entry. But surprisingly, most free user still stayed on free while users who would’ve paid $29 jumped into the $9 bucket instead.

Looking at the usage numbers, user on the cjeapest tier actuallly had the highest support tickets and the shortest retention span.

Did removing low-tier plans help your conversion, or did it just shrink your user funnel?

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