Evaluate user response to free trial models At Amplitude, we recommend you think about your growth strategy on a longer time horizon, rather than optimizing your free trials for short-term revenue. The time frame and metric that you use to evaluate the success of your free product strategy will also impact the model you choose. Basically, if you add more friction upfront, you might not see a high level of top-of-funnel user growth, but you might see higher conversion. Gauge the amount of upfront friction to addĭepending on how much friction you add to your free product-whether it’s collecting payment upfront or limiting exposure to premium features-you could be trading off user growth with a higher free-trial-to-paid conversion rate. Choosing the best model for business growthīefore deciding on free trials and figuring out how to increase free trial conversion, think through which model is right for your product and company. However, there’s a lot to consider while deciding which model is better for your growth. Which of these models is best for increasing conversions and sales? The industry benchmarks for freemium model conversion rates are under 10%, while for opt-in free trials, they are up to 25%, and for opt-out free trials, up to 50%. Use with no time constraints | Access to limited product features Use for a limited time | Access to full product features | Payment information required upfront Use for a limited time | Access to full product features | Doesn’t require payment information Free trials, on the other hand, are limited by time but often provide full functionality of the product or a specific feature. There are also other models, like the freemium model, where users gain access to a free version of the product without time constraints, but it’s usually restricted in terms of feature sets. Opt-out trials are when users gain access to the full product by giving their payment information upfront.Opt-in free trials are when users gain access to the full product without giving their payment information.

Types of free trial modelsįor online products like web applications or mobile apps, there are two types of free trials: opt-in and opt-out trials.

It also depends on the type of free trial model. But the free-trial-to-paid conversion rate can vary wildly across companies. Most companies that use free trials say they account for up to 10% of new sales.

Free trial conversion rates can be increased by making it easy to use the product during the free trial, making sure customers build a habit around the features that are most core to their use case, and figuring out an effective product-led sales strategy.

The type of customers you want to attract and the type of growth you’d like to see are important factors to consider when deciding between free and paid trials.

It’s much more common to offer a free trial versus a paid trial, and the former is usually more impactful to your growth.

While free trials can increase sales, their effectiveness will depend on your business model, state of product experience, and packaging.

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