4 ms·
We ran the numbers on this last month, for our SaaS startup (shameless plug at end of this post). Certainly Patrick is right that the marginal cost of an additi
by encoderer 12y ago
We ran the numbers on this last month, for our SaaS startup (shameless plug at end of this post). Certainly Patrick is right that the marginal cost of an additional user is low. It's why the math works on a "free for life" entry level plan. But in our case, we offer SMS (including international) on paid plans, so a free trial has a real non-zero cost for us. And there's an additional risk attached to offering a free trial and ending up with a riptide of unprofitable customers.
Of course, not having a free trial could also have a non-zero cost. We made some assumptions and played with a model but in the end we followed our gut. We have that free for life plan, and an affordable, under $10/mo entry-level plan. We offer free trials to customers when it seems appropriate, and we'd certainly give one out if asked, but it's a manual process for us and we like that.
* Cronitor offers dead-simple cron job monitoring and time tracking. Check it out at https://cronitor.io https://cronitor.io