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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Based on our saas pricing book, Price to Scale, here are some best practices to prevent PLG freemium users from finding workarounds to avoid paying:
Directly align product design with pricing strategy
• Our book explains that the freemium model should be built with a clear separation between free and premium capabilities. By intentionally designing product features, you ensure that the functionality which drives value remains gated—encouraging users to transition to paid plans. (See Chapter 6 on Product Development Focus)Enhance the value of premium features
• The product roadmap should emphasize creating unique, compelling premium features. These features should not only solve more complex use cases but also be difficult or impossible to replicate through workaround strategies in the free version.Monitor and iterate to stay ahead
• Continuous product updates and a feedback loop are essential. As users find new ways to extract value from free features, consistent monitoring lets you adjust feature availability or add usage limits, ensuring that the free version remains an introduction rather than a replacement for the complete product experience.Gated access and clear feature tiering
• Clearly tier features by implementing usage caps or restrictions for freemium users, requiring an upgrade when certain thresholds are reached. This tiered approach helps to mitigate workarounds and aligns user behavior with your revenue objectives.
In summary, by designing your product with a deliberate divide between free and premium offerings, enhancing premium value, and regularly iterating based on user behavior, you can reduce the risk of PLG freemium users finding workarounds to avoid paying. These strategies, as detailed in Price to Scale, directly contribute to both protecting revenue and fostering a smoother upgrade path for users.