- Oct
- 09
- 2008
Does there always have to be a free version?
By: Robert Dempsey | Tags:
I had lunch with Dan Benjamin this past Tuesday, which is always a great time. I was telling him about an application we are going to launch next week, to get his feedback on both the plans we will be offering, and the essence of the application. When I told him that we would offer a free plan in addition to three paid plans (with 30-day trials), he asked me why we were offering a free plan. I was struck by the question as I hadn’t really thought about why.
I just thought that everyone pretty much expected us to have one.
Now don’t take this the wrong way. He wasn’t saying we should or should not have a free plan. He was simply challenging me to consider my reasoning a bit more. He was also pointed me to an article: Free Vs. Paid.
So I ask you, our readers, what do you think?
Have you all come to expect a free (and limited) version of an application? Does a limiting free version matter when you can get 30 days free on a paid account?
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4 Responses to “Does there always have to be a free version?”
On October 9th, 2008 at 8:50 pm
Brian said:
I think the free plan is a great way to hook potential customers. Its not provided as a service to the community, but instead as a way to demonstrate the quality of your app. A 30 day trial just isn’t enough to really evaluate the usage of an app as you work it into the process of your life or work.
Jason Fried recently compared it to getting your customers addicted to drugs by giving free samples. Then they want more than they can get for free and they pay for it. But only if your product is worth it of course.
On October 9th, 2008 at 9:12 pm
Nick Pettit said:
The free version is essential.
The 30-day trial allows customers to try out the product, but it’s the free version that makes people upgrade. When the trial period ends, they get the rug pulled out from under them a bit. For me personally, the usefulness of a feature is revealed when it’s taken away from me.
A free version also creates lock-in. You should let your customers export their data, but it’s never going to be quite as awesome without the app to go with it. They also invest their time learning the app, and get comfortable with it.
I think Jason Fried is right. Make them dependent, so when they want more, they have no choice but to upgrade.
On October 9th, 2008 at 10:15 pm
allan branch said:
Without a free version you’re going to have the “I signed up 40 days ago and I didn’t have time to test the product. I’m back and would like to test the app.” Without a free account waiting for them you’ll get that alot.
On October 10th, 2008 at 7:15 am
Chap Ambrose said:
We recently launched a site and decided to forgo the free plan.
Ultimately I think it depends on your audience. We’re selling a product that helps businesses get their work done. I think individual consumers have an expectation for a free plan, but I’m betting that business don’t. (i.e. the free trial of MS Office is a full-featured 60 day demo, not simply a stripped down version of the suite that can be used indefinitely.)
We’re also not requiring credit cards for people to start their free trials, which I think is important if you don’t have a free plan.
If someone contacted us because they want to try it longer than 30 days we wouldn’t have a problem extending it for them.