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This is really aggressively oversimplifying a complicated problem that exists across a huge number of different types of software. In some cases, sure, a free p

This is really aggressively oversimplifying a complicated problem that exists across a huge number of different types of software. In some cases, sure, a free plan is going to cost more in effort than it pays in users who convert to paid. That said, the objection that free users are going to take up too much time is pretty easily solved... look at Google, which has zero customer support and an enormous number of free users. As long as you set expectations up front, you can offer minimal customer service to free users (which also means you can sell it as part of paid plans). But even beyond that, there are just so many generalizations here that may not apply to you. Deciding whether to have a free plan or not should depend on what the actual percent of your users that convert from free to paid is - you shouldn't just go with no free plan because someone says, "Many users will never ever pay, regardless of how good your product is and how much of a problem it solves." There's some reasonable thoughts in here, but the absolutism of it shows that the author hasn't really considered the breadth of possible scenarios here - likely they've gone through this analysis with a product or two and come to the right conclusion, but that doesn't mean that conclusion is anywhere close to 100% applicable.

mproud 6y ago
Agreed. Sometimes adoption is just as important as making money.
PragmaticPulp 6y ago
I view articles like this as if I'm watching a high school debate team competition where the author is forced to argue a side while ignoring the positives of the other side. Fun for seeing emphasizing different perspective, not so great for giving a balanced view. > In some cases, sure, a free plan is going to cost more in effort than it pays in users who convert to paid Definitely. This is the most common mistake I see with free plans. Over-eager founders like to think of their free plan as a trial period, where users will either stop using the product or go on to subscribe. Instead, huge portions of your userbase simply want as much free product as they can get without paying for anything. Never underestimate the number of people who will gladly use your product right up to the limits of the free plan without stepping over. This can be okay if those free users end up doing free marketing for you. Dropbox is a perfect example of a tool where many (most?) users never even have a need to upgrade from the free plan. However, those free users were poised to recommend Dropbox when their companies were looking for a file storage and sharing solution. They also spread the Dropbox name around with Dropbox share links. Slack is another great example of a free plan that lulls users into proselytizing for you. How many companies adopted Slack simply because some of their teams were already using the free plan to get work done? Yes, free plan customers tend to complain way more than you'd think. However, you don't have to listen to them whine. You just have to make sure they aren't soured on the experience in general. If your core product can be reduced to something with near-zero operating costs and an absolutely bulletproof, hands-off operating mode, a free plan isn't much of a drag on your company. However, if your product is such that free users generate the same costs/server load as regular users, you're going to inadvertently create a business model where your 10% of paying customers are subsidizing the 90% of free customers. You really need some clear limits on the free plan and an ultra low overhead backend to make this work at all.
- bachmeier 6y ago
  > However, those free users were poised to recommend Dropbox when their companies were looking for a file storage and sharing solution. You can take the Dropbox example further though. The free plan was absolutely necessary for Dropbox. If you're in the file sharing business, it's only going to work if all users are using Dropbox.
  - sokoloff 6y ago
    I don’t think I’ve ever sent a Dropbox link and have received few enough to count on both hands. Dropbox for me always seemed like a polished file sync solution with associated/inadvertent offsite backup that later bolted on a not-quite-polished file share function.
polote 6y ago
Hum, Google is a bad example, Google doesn't have a free plan. They monetize their users. It is a complete different topic
- awillen 6y ago
  You're incorrect. Gmail, Sheets, Docs and Slides all have free plans as well as paid (Google Suite) plans. Google Drive also has a free plan as well as paid upgrades. This is also precisely the point - in Google's case, they find a way to monetize their free users in addition to selling paid plans. The author totally fails to consider that possibility along with any others that might make free plans viable.

mproud 6y ago

Agreed. Sometimes adoption is just as important as making money.

PragmaticPulp 6y ago

I view articles like this as if I'm watching a high school debate team competition where the author is forced to argue a side while ignoring the positives of the other side. Fun for seeing emphasizing different perspective, not so great for giving a balanced view. > In some cases, sure, a free plan is going to cost more in effort than it pays in users who convert to paid Definitely. This is the most common mistake I see with free plans. Over-eager founders like to think of their free plan as a trial period, where users will either stop using the product or go on to subscribe. Instead, huge portions of your userbase simply want as much free product as they can get without paying for anything. Never underestimate the number of people who will gladly use your product right up to the limits of the free plan without stepping over. This can be okay if those free users end up doing free marketing for you. Dropbox is a perfect example of a tool where many (most?) users never even have a need to upgrade from the free plan. However, those free users were poised to recommend Dropbox when their companies were looking for a file storage and sharing solution. They also spread the Dropbox name around with Dropbox share links. Slack is another great example of a free plan that lulls users into proselytizing for you. How many companies adopted Slack simply because some of their teams were already using the free plan to get work done? Yes, free plan customers tend to complain way more than you'd think. However, you don't have to listen to them whine. You just have to make sure they aren't soured on the experience in general. If your core product can be reduced to something with near-zero operating costs and an absolutely bulletproof, hands-off operating mode, a free plan isn't much of a drag on your company. However, if your product is such that free users generate the same costs/server load as regular users, you're going to inadvertently create a business model where your 10% of paying customers are subsidizing the 90% of free customers. You really need some clear limits on the free plan and an ultra low overhead backend to make this work at all.

bachmeier 6y ago
> However, those free users were poised to recommend Dropbox when their companies were looking for a file storage and sharing solution. You can take the Dropbox example further though. The free plan was absolutely necessary for Dropbox. If you're in the file sharing business, it's only going to work if all users are using Dropbox.
- sokoloff 6y ago
  I don’t think I’ve ever sent a Dropbox link and have received few enough to count on both hands. Dropbox for me always seemed like a polished file sync solution with associated/inadvertent offsite backup that later bolted on a not-quite-polished file share function.

polote 6y ago

Hum, Google is a bad example, Google doesn't have a free plan. They monetize their users. It is a complete different topic

awillen 6y ago
You're incorrect. Gmail, Sheets, Docs and Slides all have free plans as well as paid (Google Suite) plans. Google Drive also has a free plan as well as paid upgrades. This is also precisely the point - in Google's case, they find a way to monetize their free users in addition to selling paid plans. The author totally fails to consider that possibility along with any others that might make free plans viable.