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- 🪄 Ditch The Free Plan In Your SaaS
🪄 Ditch The Free Plan In Your SaaS
PLUS: Building a $700k Newsletter In 14 Months
Startup Spells 🪄
September 22, 2024
Ditch The Free Plan In Your SaaS
Offering a free plan can work if you have a strategy to turn free users into marketers for your product.
However, often the free plan meets users' needs so well that they never become paying customers.
Canva is a good example of this, as many users have used its generous free plan for years without subscribing. But they surely have marketed Canva to others.
Senja offers a generous free plan that allows you to collect up to 15 testimonials. This is usually enough for most users.
Senja's Free Plan
Let's be honest, people rarely read hundreds of testimonials before buying a product. 15 testimonials are more than enough for a buyer to make a decision.
Senja's Generous Free Plan
You can use Senja's free plan to display beautiful testimonials on your site without ever paying for it.
2. Typefully - Twitter Thread Maker & Twitter Analytics
Typefully used to offer a generous free plan where you could have unlimited drafts, publish unlimited tweets but only schedule 1 tweet at a time.
Now, the free plan limits you to 5 drafts and you can only publish 15 posts per month, with no scheduling option.
Typefully Current Pricing
After removing the generous free plan, Typefully increased its monthly recurring revenue (MRR) by $6,000 in just one month.
Typefully Ditches Generous Free Plan
Granted, they had lots of users already due to the generous free plan.
Typefully $6k MRR In 1 Month
Although they gained many users with their free plan, they likely missed out on about $50,000 to $100,000 ($6,000 x 12) by not charging upfront during their first few years.
3. Autoshorts - #1 Faceless Video Generator for TikTok & YouTube
Autoshorts AI doubled its conversion rate after eliminating its free plan.
Autoshorts AI Doubled Conversions after ditching free plan
4. Founders Cafe - For early stage founders who want to get to 1-4k MRR in the shortest time possible
Founders Cafe is a community rather than a SaaS product, but it also saw changes when it started charging upfront.
Founders Cafe got a different set of personas when they charged upfront.
Founders Cafe Upfront Payment
Free trials often attract people who aren't serious about solving their problems, while those who pay have a burning desire to solve their problems, are more invested, and provide better feedback.
Ultimately, you want feedback from paying customers, not just users.
A tool to Turn Voice Data Into Transcripts
Assembly AI has the world's best text-to-speech AI model with the highest accuracy rates—up to 95%, up to 30% less hallucinations than other leaders, and lowest latency that converts 63 minutes audio in just 35 seconds.
One recommended video on Building a $700k Newsletter In 14 Months
This video gives insight into building a massively profitable newsletter in just 14 months.
Top Tweets of the day
1/
I've worked in fiercely competitive industries for most of my career — fashion, business intelligence, now project management.
If you're not creating a category, taste is all there is. A point of view with emotional resonance beats a feature checklist every time, by a mile.
— NaN (@thenanyu)
8:13 PM • Sep 20, 2024
"Point of view is worth 80 IQ Points"
2/
If I was 25, I'd only focus on 2 things
1. Growing a social media following (video). 5 phones with 25 different Insta, TikTok, and Shorts accounts.
2. Stay up to date on every AI tool imaginable and learn how to use them together to create things that no one tool could do.— BowTiedOpossum | Ecommerce (@BowTiedOpossum)
4:06 AM • Mar 21, 2023
If the world rewards being an influencer more than being an astronaut, then the world will create more influencers.
3/
This was done in Singapore back when I was in school. There were school-run fat camps that shamed kids into losing weight. The program’s name was “Trim And Fit” Club, which was essentially “FAT” spelled backwards.
If your BMI was too high, you were automatically enrolled.
— Melissa Chen (@MsMelChen)
7:46 PM • Oct 3, 2022
Singapore has a unique way of solving problems. This solves problems right at the source when you are young.
Rabbit Holes
Demand Generation | Complete Guide to Outreach - The guide on how to nail outreach so you get clients systematically.
What Happened After I Outed a Reddit Mod for Affiliate Spam - Use Reddit to make an extra $100k per year by spamming Reddit as a side-hustle.
The Most Superior Form of Training and the Most Hard-Hitting 2 Sentences in All of Talent Development Research - Deliberate practice requires effort and is not inherently enjoyable. You must sacrifice a few things to enjoy maximal performance.
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