Freemium vs Free Trial - what should you choose for your SaaS

Episode 53

Hello friends, welcome to Episode 52 of Good Buy. Today’s theme is:

How to choose between a Freemium v Free Trial for your SaaS- all in less than 250 words

Let’s dive in.

---

Good Buy is brought to you by:

---

Friends,

Freemium and free-trial both have constraints - Freemium has a value constraint while free-trial has a time-constraint.

For both freemium & free-trial models, the product onboarding, user experience is different.

Pros & Cons of Freemium:

Pros & Cons of Free Trial:

Choose Freemium for your SaaS when:

1. User adoption is one to many (eg: Slack)

2. Has network effects & community baked in (eg: Notion)

3. You identify which 80% of features are accessible for free (eg: Building blocks on Notion)

4. The probability of a sale increases over time with the growth in free users

Choose Free Tier for your SaaS when:

1. you want your product, Customer support, UX, onboarding to do the selling for you a time-constraint

2. You want to leverage urgency & FOMO post the value-add

3. You want to attract a small segment of people (niche) in a market and cater to them

4. You want to leverage paid marketing & outbound

5. Your product is different than the alternatives and the value is tangible

---

Download this essay to read on the go if that’s your jam

---

Attract & close high-intent users for your SaaS from your landing page

1. Get a ScreenRoast - Upload your landing page URL and get a PDF with 10+ actionable tips to optimize your landing page in 72 hours. The result? Get up to 21% increase in high-intent users for your SaaS ($249)

2. Remix your landing page - Give your SaaS landing page a facelift with SEO-optimized copy, a UX-focused wireframe, a positioning & value proposition canvas to reach PMF that much faster ($1049) or (learn more here)

3. Get your free landing page video audit - Enter your landing page URL and get a free video audit (link)

---