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Test against your own audience, but I would bet heavily against the conclusion "Usage limited trials outperform free trials" for the majority of SaaS apps. Dro

by patio11 14y ago

Test against your own audience, but I would bet heavily against the conclusion "Usage limited trials outperform free trials" for the majority of SaaS apps. Dropbox's case is different with a capital D because the trial/invite mechanic is code to their viral adoption. One powerful reason why you generally want to avoid having a meter running is you are really making two related but distinct sales: you are trying to convince them to pay, yes, but you are also trying to convince them to use your thing versus their existing way of doing business. That is often the harder sale. Putting a marginal cost, even in free quota, for using your thing puts friction in the adoption process, which you KEENLY do not want. While it may be the case as a bootstrapped entrepreneur that your business has not yet spent the sum of $600 on everything put together, the overwhelming majority of businesses are not like you. Many businesses will spend $600 today on one line item, for instance virtually any company which employs 3 or more college graduates. Many of these businesses also have habits with regards to buying software which are more beneficial to SaaS companies than your habits are, for example a) having predictable positive ROI on integration costs and b) never attempting to optimize for $150 expenses by switching providers on a whim.

tgrass 14y ago
For more on patio11's thoughts on pricing and conversions, please listen to his MicroConf lecture: http://www.kalzumeus.com/2013/04/24/marketing-for-people-who-would-rather-be-building-stuff/ http://www.kalzumeus.com/2013/04/24/marketing-for-people-who...
andrewflnr 14y ago
How much better is a free trial for making that harder sale? If I know that any work I put into switching to your thing might get destroyed after thirty days, I'm less likely to bother at all. Whereas if it's a partially-free-forever thing like Dropbox, I don't have to commit as much to either the new way or old way. If I hate it, I don't have to rush to get out before the trial ends, I can just wait until I can't take it anymore. Partly it depends whether I actually need the "full version" just to evaluate, or if I can get by on the free version, for now at least. Didn't you have a similar issue with BCC, where people would get all they needed from the free trial? I don't remember how you resolved that.
- monkeyspaw 14y ago
  Not speaking for patio11, but I would guess the free trial allows businesses to evaluate whether the software meets their requirements. Companies have budgets to pay for what they need. Their concern is that the software meets those goals, then they are willing to break out the checkbook. They know they have a problem, they have a budget to solve it, and they just need to know your software solves it. Consumers, OTOH, may need to have value proven over time. Thus, the dropbox usage limits make a lot more sense.

by patio11 14y ago

tgrass 14y ago

For more on patio11's thoughts on pricing and conversions, please listen to his MicroConf lecture: http://www.kalzumeus.com/2013/04/24/marketing-for-people-who-would-rather-be-building-stuff/ http://www.kalzumeus.com/2013/04/24/marketing-for-people-who...

andrewflnr 14y ago

How much better is a free trial for making that harder sale? If I know that any work I put into switching to your thing might get destroyed after thirty days, I'm less likely to bother at all. Whereas if it's a partially-free-forever thing like Dropbox, I don't have to commit as much to either the new way or old way. If I hate it, I don't have to rush to get out before the trial ends, I can just wait until I can't take it anymore. Partly it depends whether I actually need the "full version" just to evaluate, or if I can get by on the free version, for now at least. Didn't you have a similar issue with BCC, where people would get all they needed from the free trial? I don't remember how you resolved that.

monkeyspaw 14y ago
Not speaking for patio11, but I would guess the free trial allows businesses to evaluate whether the software meets their requirements. Companies have budgets to pay for what they need. Their concern is that the software meets those goals, then they are willing to break out the checkbook. They know they have a problem, they have a budget to solve it, and they just need to know your software solves it. Consumers, OTOH, may need to have value proven over time. Thus, the dropbox usage limits make a lot more sense.