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People sometimes ask why @podia doesn’t have a free plan. (We have a free trial.)
Thought I’d breakdown why free plans are bad for you and bad for the company.
A short thread
Thought I’d breakdown why free plans are bad for you and bad for the company.
A short thread
1. Free plans overrun customer support, so paying customers are worse off.
Just because you’re not paying for something doesn’t mean a company can ignore your live chats and emails.
This hurts paying customers.
Just because you’re not paying for something doesn’t mean a company can ignore your live chats and emails.
This hurts paying customers.
2. Free plans that gate or limit core features are bad product experiences.
Not a great way to test (or use) the product when you keep bumping up against a paywall.
Not a great way to test (or use) the product when you keep bumping up against a paywall.
3. Free customers convert less frequently than you’d guess.
You may think you’re going to be able to convert a lot of those free customers. Turns out most will fall off and never convert.
You may think you’re going to be able to convert a lot of those free customers. Turns out most will fall off and never convert.
4. Free customers don’t provide valuable feedback.
I don’t want a free customer’s feedback. They haven’t committed to the product.
I don’t want a free customer’s feedback. They haven’t committed to the product.
5. Building a free plan requires a lot of product resources.
Every new plan you create requires more if/else style choices in your product.
A free trial is a lot easier to maintain.
Every new plan you create requires more if/else style choices in your product.
A free trial is a lot easier to maintain.
6. Free customers aren’t invested in your success.
Since they’re not putting their money where their mouth is, all they want is more for free.
Since they’re not putting their money where their mouth is, all they want is more for free.
7. Paying for something means you’re more likely to use it.
If you’re serious about the product then paying for it is a good forcing function to actually using it.
If you’re serious about the product then paying for it is a good forcing function to actually using it.
Those are just some of the reasons why free plans are bad.
I’m sure some people will have counter points, but offering a free plan is just not for me.
I’m sure some people will have counter points, but offering a free plan is just not for me.
