Our free tier is packed with features, which is great, but now users seem content to stay on it indefinitely.
The conversion rate is at a low 2%, and I’m starting to think we might have overdone it.
Usage limits beat removing features outright. People upgrade once they hit those walls.
Identify the most used features by your paying customers. Move those behind a paywall while keeping some value for free users. Don’t remove all free features at once, as it can cause backlash. Consider adding limits instead of eliminating features completely. For example, allow free users 10 exports each month rather than unlimited. Start with a test group to avoid harming your conversion rates.
Adjust the free tier for improved conversion.
Been through this with two apps. Adding friction worked way better than cutting features.
Don’t remove what free users love - make premium smoother instead. We kept the free export limit but let paid users skip queues. Added one-click shortcuts while free users still needed 3-4 steps.
Usage gates worked great too. Free users hit monthly limits but could earn more through referrals or shares. Way better conversion than hard paywalls since people felt they earned the upgrade instead of being forced.
2% isn’t awful if your lifetime value’s solid, but you definitely need some pain points in the free version.