5 Lessons Learned After Removing and Bringing Back Our Free Plan

The debate over offering a free plan versus a free trial has been ongoing among companies for some time. We at ProdCamp found ourselves grappling with this issue a couple of years ago, before the widespread popularity of product-led growth (PLG). We had several discussions about the impact of a free plan on customers' willingness to pay and demonstrate commitment. When testing the hypothesis for our new product, we didn't want to fall into the trap of attracting curious early adopters who had no long-term intent to use the product.

When we first launched on Product Hunt, we only had a working prototype and no paid option available. Despite this, we received a lot of feedback and used it to iterate on the product. However, we soon realized that some users didn't intend to use the product because they didn't have a need for it at the time. This made us reevaluate our priorities and shift our focus to features that were in demand, rather than wasting time on something that nobody wanted. This prioritization also led us to get rid of the free plan, as we realized that it was taking up valuable resources and distracting us from developing features that paying customers actually wanted. By making this difficult decision, we were able to focus on delivering value to our paying customers and ultimately grow our business.

After removing the free plan and experimenting with both options, we eventually decided to bring it back. Here are the five lessons we learned in the process:

1. The trial period is not enough.
   People want to explore a product at their own pace without time constraints. A free plan allows them to do so, increasing the chances of converting them to paid customers.

2. Fewer signups made it easier to distinguish signal from noise.
   With fewer signups, we had fewer people leaving feedback on what we should work on. This helped us keep our focus on the features that mattered most.

3. A reverse trial helps reengage customers.
   If someone had tried the product but didn't convert to a paid plan, offering a free plan can lower the barrier of re-engaging with them and reminding them of the product's value.

4. A lack of a free plan led to fewer signups.
   People who don't have the budget approved for a product may never sign up if they don't have the option to try it for free. A free plan attracts potential customers who are not yet ready to pay, but may become loyal customers in the future.

5. The Free plan is an acquisition channel.
   The Free plan can be a valuable tool for lead acquisition, helping to fill TOFU (the top of your funnel) with potential customers who can be nurtured and eventually converted to paid plans.

It's important to note that a free plan is not a replacement for low-cost subscriptions. Free plans usually offer some of the product's functionality for free, but customers who need more features will eventually need to upgrade to a paid plan.

In conclusion, while a free plan may not work for every business, it's worth considering the benefits it can bring, such as increased signups, customer engagement, and feedback. By experimenting with different options, you can find the right balance between a free plan and paid plans that work best for your business.

We're excited to announce that we're launching the ProdCamp Free plan this Friday on Product Hunt, your support is very much appreciated and will help us. 🙌