Free Trials are a NO-NO.
Free trials were always the go-to strategy for SaaS companies.
The idea was simple: let users experience the product, get them hooked, and convert them into paying customers.
But over time, many SaaS founders have realized that free trials often do more harm than good. In fact, some of the most successful B2B SaaS companies have moved away from them entirely.
Here’s why - and what you should do instead.
1. Attracting the wrong customers
Free trials often bring in users who are not serious buyers. Many sign up just to explore the product with no intent to convert. Worse, they may not even be the right fit for your ICP (Ideal Customer Profile). This leads to wasted sales efforts and a bloated user base that doesn’t translate into revenue.
2. Poor activation rates
Data from SaaS Capital shows that conversion rates from free trials vary widely but often fall below 20%. If your onboarding isn’t flawless, most users won’t engage deeply enough to see the real value before the trial ends. A low activation rate means that your best leads might drop off simply because they didn’t experience the full benefits in time.
3. Devaluing the product
When users get something for free, they don’t always appreciate its value. A free trial can signal that your product isn’t worth paying for upfront, making it harder to justify the price later. By contrast, requiring commitment from the start ensures that users perceive real value and invest time in learning how to use your software effectively.
4. Longer sales cycles and higher churn
Free trial users often have a casual “let’s see if this works” mindset. They’re not committed, which leads to:
Longer decision-making times
Higher churn after conversion
More support tickets from users who aren’t serious buyers
A study by OpenView found that companies shifting from free trials to paid onboarding reduced their churn rates significantly because users who pay upfront are more engaged.
5. Misalignment with complex B2B sales
For high-ticket B2B SaaS products, free trials simply don’t make sense. Enterprise buyers need demos, proof of ROI, and security reviews - not a 7-day or 14-day sandbox. If your software requires integration, team onboarding, or custom setup, a free trial will likely be more frustrating than useful.
When free trials are NOT the best strategy
While free trials work for some consumer-focused or self-serve SaaS businesses, they fail in many scenarios, such as:
High-touch B2B sales: If your product has a long sales cycle or requires multiple decision-makers, a free trial won't speed up adoption. A structured sales process is a better approach.
Complex onboarding: If users need setup assistance, a free trial might leave them confused rather than excited. Personalized onboarding delivers better results.
Premium positioning: If your product is high-end, offering a free trial can cheapen its perceived value. Charging upfront signals exclusivity and quality.
Low-touch, high-churn products: Products with low switching costs (e.g., project management tools) often see high churn from free trial users who test multiple solutions before committing.
What to do instead
If free trials are a bad fit, what’s the alternative? Here are three effective strategies:
1. Paid trials
Instead of free trials, offer a paid trial with a money-back guarantee. This filters out non-serious users while giving hesitant buyers a way to test your product risk-free.
2. Demo-led sales
For B2B SaaS, moving to a demo-led approach ensures that only high-intent leads get hands-on access. Personalized demos allow you to tailor the presentation to the buyer’s needs, making it more effective than a generic free trial experience.
3. Freemium with clear upgrade triggers
If you want some level of free access, a freemium model is often better than a free trial. However, it must have a well-designed upgrade path. Examples include:
Slack (limited message history)
Notion (limited file storage)
HubSpot (limited CRM features)
Freemium works best when the free version provides value but nudges users toward paid plans as they grow.
Does your product offer free trial? Do you still think it’s a good idea?
Let me know any good examples of free trials in the comments.
See you soon!
Kristina
🔗 Connect with me on LinkedIn - Kristina Melsova.
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