Trial or Freemium:
How to Let Users Try Your Product Without Losing Revenue

So we launched a product

A simple question arises

How to engage new users?

(and at the same time keep their motivation to pay)


After all, to make a decision, most people want to feel, poke, touch, and all that

Usually, two options come to mind: trial and freemium

Trial is when we give full access to functionality for a limited time (usually 14 days)

Freemium is about permanent access, but to a very minimal amount of something in the product (features, data volume, number of users, etc.)


And the difference between these models is fundamental
(because they pursue different goals)

Trial is aimed at immediate revenue growth

It immediately shows the user the product in all its glory. And at the same time creates artificial scarcity with a deadline, forcing the potential customer to make a payment decision faster.

This suits us if we have a complex product with a high price tag, and it cannot be evaluated in parts.

The main risk is that if our user does not manage to reach the "Aha moment" within those 14 days, there is a high chance they are lost.

Therefore, when choosing a trial, it is very important for us to build a strong onboarding (through UI and built-in tips or with the help of support managers)


Freemium, on the other hand, is more about growing the customer base and capturing market share

When you need to motivate the user to "put down roots" in the product. So that it becomes part of their daily routine.

And then, through word-of-mouth, which significantly reduces the cost of acquiring new users, work on increasing conversion to payment and growing LTV.

If we have a simple, intuitive product with a relatively low price tag and increasingly complex functionality as customers grow, then freemium is our friend.

The main risk here is that our unit economics may never turn positive. Because often the percentage of paying users is in the range of 2-4%.

Therefore, for freemium to succeed, our product must have the potential for millions of users with near-zero acquisition and maintenance costs.


Are there any other alternatives?

We closely follow trends in pricing and monetization, so we know that..

Hybrid and behavioral models are actively developing

For example, the reverse trial is gaining popularity

When we first automatically grant full access for 14 days

And if the client doesn't pay after that, we don't block them but downgrade to the minimal functionality of the free version


Another trend is mandatory card binding

In the trial, we charge the user at least 1 ruble to immediately validate their ability to pay.

It seems that card binding is a psychological barrier that filters out non-target users at the entry point.

But I have no personal cases
(I also didn't find public numbers)

Further, it's a matter of tests and measurements

Which model do you use?

#pricing