Should our free offering be truly free forever (with limited features) or essentially a time-limited trial that expires? Which model is more effective at eventually getting people to pay?

Based on the insights from our pricing strategy book, Price to Scale, a truly free forever (freemium) model—with a well-designed set of limited core features—tends to be more effective in building long-term relationships and eventually converting users to paid plans.

Here’s why that approach is often favored:

• Strategic Product Development: As discussed in our book (see Chapter 6 on product evolution), a freemium model forces the product team to focus on developing features that convert free users. This continuous engagement gives users more time to experience the value of your product and creates natural opportunities for them to upgrade.

• Lowering the Barrier to Entry: A free forever solution lowers friction since there’s no immediate pressure or expiration. It allows potential customers to adopt and integrate your product gradually, which can lead to deeper engagement over time. This approach can be particularly effective if your product’s value is best demonstrated through long-term use.

• Continuous User Experience: In a freemium model, users aren’t forced to make a quick decision before a trial expires. Instead, they become accustomed to the product and notice the added benefits as they explore premium features. This ongoing relationship makes conversion more about perceived value rather than short-term urgency.

While a time-limited trial can create urgency, it may not allow the same depth of user experimentation and habit formation, especially for complex products or those requiring a longer onboarding period.

In summary, our book highlights that if your goal is to build a lasting customer relationship and systematically incentivize upgrade through product engagement, a truly free forever model (with a carefully designed pathway to premium features) is generally more effective at getting people to eventually pay.