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In fact, I think the ideal scenario is a freemium plan that showcases the "core value" (encouraging user signups) with a free trial on top of it for premium features (as a way to filter out more engaged users). These are product levers, each with benefits and drawbacks. To wrap up this post, I don't think free trial and freemium plans are mutually exclusive. Sure, you may have fewer signups with a trial period, but this filtering process can help create more engaged users.

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I believe a trial period encourages full exploration of the product. With that being said, these habit loops oftentimes discourage exploration of new features/benefits inside the product. Freemium creates habit loopsĪ major benefit to the free-forever model is that encourages users to interact with a few pieces of the product (the core value), which creates a habit over time. Many of the examples I provided above are public companies who need predictability, so it makes perfect sense why they've implemented a trial period.

A free-trial model forces the user to engage with the product within a certain window of time and it also forces conversion after, otherwise, you can't use the product. Lack of predictabilityįor example, a pure-play freemium offering oftentimes creates unpredictability around when a conversion will happen. Where freemium has troubleĪ free-forever plan won't eliminate every issue you face bringing a product to market. In addition, a free forever plan offers the ability to remove timing from the selling equation (I'll write more about what this means in the future).

Evernote - take notes and sync them across devicesĪs you might imagine, this creates a huge top-of-the-funnel, as the value proposition is simple and the product is easy to use.

Hubspot - input sales/marketing data into a CRM.

I believe freemium works best when you have a simple product that requires very little explanation. I have a few theories for why this is happening. This begs the question, why do these companies offer a free trial period? Isn't a "free forever" plan the best? I'm not sure if this is widespread, but I was able to signup for a free trial of their Marketing Professional plan. Hubspot also has a trial period for their premium marketing plans. Evernote now has a trial for business Hubspot If you see the image above, you will see that Evernote now has a free trial for their business plan as well. Dropbox offers a 30-day trial for business Evernote Dropboxįirst up on the list - Dropbox still offers a free plan with no trial period for individuals, however, if you'd like to try the business plan, you need to start a 30-day trial. Here are a few examples from some companies who used to be "pure-play" freemium. Many of these freemium companies have started to leverage trial periods (free trials) too. With that being said, I've noticed a very interesting development recently.

Over the last couple of years, it's been awesome to see more and more companies (especially public ones), utilizing this approach.

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As someone who worked for B2B software companies who used this strategy to sell into the enterprise, I thought it was the future of selling software. Almost two years ago, I wrote about freemium B2B in the software world.