Status
Startups
Alternative Phrasing
Source
Marc Lou
Only 3% of free users will convert to the paid plan. If you have a free plan and a $10 per month plan - it means your average user is worth 30 cents. If you want to make $3,000 per month you need 10,000 new users each month. For someone who is starting off and trying to make it, this can be extremely onerous (especially if you’re a solopreneur) If you’re VC-backed and trying to make something huge, then a free plan can make sense - think Canva, Notion etc.
I like this perspective because realistically most people aren’t making a notion or canva.
Alternatives:
- Make a completely free tool that feeds marketing into your product
- Limited free trials
- Free credits or usage