Freemium vs Free Trials in SaaS

In the fast-growing world of SaaS (Software as a Service), businesses typically offer free plans to potential users. These plans give them the opportunity to explore the software before a longer or more expensive commitment.

There are two types of free trials that are usually offered: freemium and free trials.

Today's article aims to describe both and give a quick breakdown that would help you make the right decision for you or your business.

FREEMIUM

Freemium offers permanent access to a basic version of the software for free, with the option to upgrade for more features. On this plan, users can keep using the basic features of the software for as long as they like however, for more functionality, they would need to go for a paid upgrade. An example here is Canva, whilst some people are satisfied with the free version there are others who need the added functionality that the paid version (Canva Pro) offers. Personally, I alternate between the freemium and paid versions, depending on the type of projects or tasks that I am working on.

Other examples include Zoom, Asana, Slack etc, which all have unlimited free plans as well as various paid plans with additional features.

Pros:

• No time limit—use the basic version as long as you like.
• Ideal for gradual exploration.

Cons:

• Limited functionality, which might not fully show the product’s value.

Best for users who;

• are satisfied with the basic functionality
• want to test the solution/tool at their own pace, without the pressure of committing within a specific time period

FREE TRIALS

A free trial, on the other hand, gives users access to the full version of the product for a limited time, usually ranging from a week to a month. With this plan, for a set period, users have access to the full features of the solution before making the decision of whether to commit to a paid subscription.

Examples here include Freshbooks and Basecamp, with 30 day free trial periods after which updates are required to enable access.

Pros:

• Complete access to the full features
• Great for a complete product evaluation.

Cons:

• Time limit requires you to decide within the free period

Best for users who;

• require the full features from the start (perhaps for a one-time task a short term project)
• want to explore all features for a more robust purchase decision

Which is better?

The decision of which free plan to opt for is quite subjective and depends on your specific needs and circumstances. Quick tip;

Choose Freemium if you prefer to explore at your own pace without a rush.

Choose Free Trial if you need to test the full capabilities in a short time to make a decision.

Which do you prefer - freemiums or free trials? Let me know in the comments

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