The Cost of Free
Robbie Kellman Baxter explains why a free trial is not always the best tactic and identifies three reasons a subscription business isn’t attracting new members.
Recently, a CEO of a major professional association asked me what I thought of a 30 day free trial for new members.
He worried that potential members would sign up for the free trial, binge the value in that free period and then cancel without paying. But his board was concerned that not enough people were joining and thought a free trial could be the solution.
In this case, I agree with the CEO, not the board, about offering a free trial. Here’s why.
A free trial is a taste of the best you’ve got, which you offer because either:
- They don’t understand what it tastes like
- They don’t believe it tastes as good as you say
Read the full article, “Free” Is a Tactic, not a Strategy, on Linkedin.