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Let’s get it straight – the one thing common between freemium or free trial is that none generate revenue. Before we dive into what both terms mean, it makes more sense to know what it is not. With a heavy heart, accept the fact that neither of them can protect an already ailing SaaS business
Let’s get it straight – the one thing common between freemium or free trial is that none generate revenue. Before we dive into what both terms mean, it makes more sense to know what it is not. With a heavy heart, accept the fact that neither of them can protect an already ailing SaaS business. If there is no much spark in your customer experience or service, both of these might not shine that bright. Choosing one from the freemium or free trial is like hovering less on decisions like picking from ‘black and white’ and more on the varied ‘shades of grey’ kind.
On that note, know that there is no right answer. It all depends on what fits best to your current situation and needs. If you are evidently a part of the ‘data-hungry’ audience, you are in luck! Here is a blog that is going to regale you with a bunch of information. This is what you’ll get:
A freemium model exempts the users from the time limits that are supposedly imposed in a free trial. Instead of using a particular application for a specific time frame and then going premium, you can use its limited edition for free. As compared to the premium tool, you will fall short of some of its updated features and product usage.
The version of freemium will let the user access some of all the features of your application, without charging them a dime. And that too, forever! There is no real need to hand over cash to have access. Additionally, if the user wishes to gain premium access, he or she can always upgrade their accounts, whenever they wish to.
Before we jump into the definition of a free trial in a second, it is wiser to surface the freemium plan in detail. Broadly, two common ways give a structure to a freemium plan.
In a free trial, a user will be given access to all of the application’s features for a certain time. Differing from a SaaS company and their services, it is typically from a window of 7 to 30 days. This period is generally given to the user to evaluate the worthiness of the app. Within a time frame of 7,14,2 or 30 days, a user can set up, try out and ascertain a verdict whether they wish to go ahead with the product or not.
In some of the cases, the users add their credit card credentials while signing up, and this activates the trail. Until and unless the user voluntarily doesn’t cancel the subscription, the user will be charged at the end of the free trial.
Just like in a freemium plan, the structure of a free trial comes in two formats.8
To decide which of the following – freemium or free trial is better for your SaaS business, all you need to delve into is what your business demands. It is a fundamental question that sets the tone for shaping and molding your business. In the end, the critical consideration of how well you execute the strategy. This influences the larger influence on how the evaluators convert to purchasers.
Simran hails from the content marketing backdrop with extensive knowledge in blogs, articles, and technical whitepapers in the non-fictional domain. She uses her ‘gift of the gab’ to explore new possibilities on her way and to make an exquisite impact on her readers. In her spare time, she likes to read journals on artificial intelligence or play with her cute kittens.
Published 24 Nov 2020, Updated 30 Dec 2020
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