Why free plans don't work

Very interesting blog post by Rob Walling. Here's just one example from the post:

CrazyEgg decided to drop its free plan in Jan of 2009 and they haven’t looked back. I asked CrazyEgg co-founder Hiten Shah why they decided to drop their free plan back then. “We thought that if we dropped it we would make more money,” said Hiten. This turned out to be a good move since it doubled their revenue that month.

Might very well change my pricing strategy for zenbilling.

1 comment

Mark Aufflick

I wonder if they would have had the same effect starting without a free plan? Perhaps the initial driver for customers was the free plan, but then they found it useful so they stuck with it when the free plan ended.
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