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Estd 4.22.2023
Based on the guidance in Price to Scale, the answer depends on your overall strategy and market target. Here are some key points from our book to consider:
• The free tier (or free trial) is generally used to capture a broad market or to undercut competitors. Our book notes that companies like Amplitude use free offerings to cast a wide net, even though free plans often have lower conversion rates to paid plans.
• Because free users typically convert at lower rates, if your strategic focus is on revenue generation through paid plans, you need to be careful not to let the free option steal too much attention. A prominent placement might attract a lot of visitors, but it could also inadvertently shift focus away from your paid offerings.
• The recommended approach is to balance visibility. You might consider designing the pricing page so that while the free tier is clearly available (to capture interest from a larger total addressable market), it doesn’t overshadow the value or benefits of your paid plans. This might involve subtle design choices or positioning that emphasize the advantages of upgrading.
• Testing is critical. As discussed in our book, simplicity often leads to higher conversion rates, so it’s essential to experiment with the design of your pricing page to find the right balance for your specific audience.
In summary, if your free tier is a strategic tool to attract a large user base or to discourage competitors, it should be visible—but without compromising the spotlight on your paid plans. Tailor the balance based on your market, and use testing to optimize your design for maximum conversion.