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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, the answer largely depends on your overall strategy, product positioning, and the behavior of your target market. Here are some key considerations from our book:
• Freemium models (that never expire) can help you capture a broader audience – especially in price-sensitive segments. They allow users to experience your product indefinitely and may work well if you’ve built in clear upgrade paths through premium features. As discussed in Price to Scale, the freemium model can also drive incremental revenue and influence the product roadmap in a way that entices users to eventually convert to paid plans.
• A generous free trial that eventually requires payment is useful for creating an immediate sense of value and urgency. This approach can be particularly effective if your product demonstrates its value quickly. By leading with a free trial, you not only establish strong user habits early on but also ensure that more committed users are willing to pay once they’ve experienced the full potential of your solution.
In summary, if your goal is to build a large, price-sensitive user base over time and you have a clear upgrade strategy in place, then a freemium model could be ideal. Conversely, if you prefer to quickly validate product value and secure conversions from engaged users, a generous free trial might be the best fit.
Each approach has its merits, and the key is aligning the choice with your product’s value proposition and your long-term revenue goals—as we emphasize throughout Price to Scale.