{"id":83099,"date":"2024-10-29T17:38:19","date_gmt":"2024-10-29T17:38:19","guid":{"rendered":"https:\/\/www.prodpad.com\/?p=83099"},"modified":"2025-01-13T16:24:38","modified_gmt":"2025-01-13T16:24:38","slug":"freemium-vs-free-trial","status":"publish","type":"post","link":"https:\/\/www.prodpad.com\/blog\/freemium-vs-free-trial\/","title":{"rendered":"Freemium vs Free Trial: Which is Right for You"},"content":{"rendered":"\n

Choosing between a freemium vs free trial model is a huge decision for Product Leaders, and it\u2019s usually one that can leave you tossing and turning at night. Both of these SaaS pricing models<\/a> are popular – look one way, you\u2019ll see many companies killing it with their freemium model, look another, and you\u2019ll find other businesses driving success with a free trial approach. All this does is complicate the choice. Both look like great options on paper, so which should you use for your approach? 

That\u2019s what we\u2019re here to find out. Much like everything in Product Management, the best choice between freemium vs free trial depends on your product. It\u2019s a personal choice, and finding the answer requires you to ask some important questions about your product, its position in the market, and your product\u2019s value proposition<\/a>. 

So, in the red corner, we have freemium models. In the blue corner, free trial. Who\u2019s your champion going to be? Let the fight begin.<\/p>\n\n\n

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We’ll cover:<\/h4>\n

What\u2019s the difference between freemium vs free trial?\u00a0<\/a><\/strong>
\nAre there alternatives to freemium vs free trial?\u00a0<\/a><\/strong>
\nWhat are the advantages of freemium vs free trial?<\/a><\/strong>
\nWhat are the disadvantages of freemium vs free trial?<\/a><\/strong>
\nHow do you choose between freemium vs free trial?\u00a0<\/a><\/strong>
\nHow do make users customers on freemium vs free trial?\u00a0<\/a><\/strong>
\nWhen is it right to have neither freemium nor free trial?<\/a><\/strong><\/h4>\n<\/div>\n\n\n\n

What\u2019s the difference between freemium vs free trial? <\/h2>\n\n\n\n

To be honest with you, quite a lot actually. Just because they both have \u2018free\u2019 in their name doesn\u2019t mean you should treat these concepts as the same. Sure, they’re two ways to attract users to come and try out your product without needing to spend any money upfront, but that\u2019s where the similarities end. These approaches are pretty much polar opposites.

Each approach suits a different type of product, works best in conflicting markets, and even the way they work is a complete 180 from each other. Let’s dig deeper. <\/p>\n\n\n\n

What is freemium? <\/h3>\n\n\n\n

Freemium is a pricing model where you give users unlimited, free access to your product, forever. Till the day the sun explodes and engulfs the earth. The catch here is that the version your users can access has limitations. Some features may not be accessible, there may be a product usage cap, or there could be a storage limit in place. These restrictions are there to build incentives for users to upgrade and convert to the paid version of the product, where they can access advanced features. 

With the freemium approach, you\u2019re giving users the chance to try out your product without any friction. There\u2019s no commitment, and no payment details taken – they\u2019re free to get a taste and decide if they want to try the full course.

The actions you let users make on a freemium plan should still allow them to experience the core value of your product and reach a wow moment<\/a>, but you need to strike the right balance. Offer too much for free, and users will find no reason to pay and upgrade. They\u2019ll be like that guy you let sleep on your couch during college – they\u2019ll get comfortable with your leftover pizza and do what they can to stay there forever, reluctant to change. 

You\u2019ll find that many of the companies that use freemium are in the B2C sphere and offer a relatively simple product to use and understand. We\u2019ll go into why in a bit more detail later. <\/p>\n\n\n\n

What is a free trial? <\/h3>\n\n\n\n

A free trial is where you give trial users free access to your product for a certain time limit, usually 7, 14, or 30 days. Unlike freemium models, users on a free trial often get complete access to the advanced features of your product. They can try all your features and enjoy the complete experience of your product with no limitations – except time.

When a free trial ends after a period of time, the user loses access to the product, with all the progress made in the application gone unless they purchase a paid plan. Think of it like an access-all-areas ticket at a concert, but you have to leave at 10 pm halfway through the headline set. Sure, you can check out backstage and get front-row views, but you\u2019re thrown out just before it reaches the peak. Wouldn\u2019t that leave you wanting more?

To break things down further, there are two types of free trials: an opt-in free trial and an opt-out. In an opt-in version, you don\u2019t need to to give credit card information, unless you decide to pay at the end of the trial. For opt-out, you give your card information at the start and need to cancel to avoid being charged. Otherwise, you\u2019ll become a paid member automatically.

By allowing users to explore your complete product, you\u2019ll let them see the full potential of what you offer. This, alongside the time pressure, can build incentives and increase conversion rates to the fully paid plan. 

Free trials are often used by B2B businesses that have more complicated products, but can still work in B2C. This allows users to fully get to grips with how all the features of the product work. Many free trials will include a product tour<\/a> and an onboarding experience to educate users on the product and showcase how it can benefit their specific needs. <\/p>\n\n\n\n

\"freemium<\/figure>\n\n\n\n

Are there alternatives to freemium vs free trial? <\/h2>\n\n\n\n

Yes, there\u2019s a middle ground! Like if freemium and free trial had a baby. 

Let me introduce the reverse trial<\/a>. Here\u2019s a growing trend to stop the freemium vs free trial battle and embrace them both through the reverse trial model. 

This is where instead of forcing a user to lose access to the product after a trial, they\u2019re bumped down to a freemium version of the product, allowing them to remain an active user and continue to experience the product, albeit a reduced version. Learn more about the reverse trial in our glossary post. <\/p>\n\n\n\n\n

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Product Management Glossary: Reverse Trial<\/p>\n <\/div>\n

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What are the advantages of freemium vs free trial? <\/h2>\n\n\n\n

Both of these pricing models come with their unique advantages over the other. They\u2019re popular for a reason. To help you make the call between them, it\u2019s useful to understand how these advantages play into what you need from your pricing models. We lay out the advantages below:<\/p>\n\n\n\n

Advantages of freemium models<\/h3>\n\n\n\n