What Is a Good Free-to-Paid Conversion Rate (With Data)

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Business, Marketing

4.6 • 1.3K Ratings

🗓️ 5 September 2023

⏱️ 5 minutes

🔗️ Recording | iTunes | RSS

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Summary

Join us for key insights and actionable advice on free-to-paid conversion rates

Transcript

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0:00.0	All right, so we are going to talk about what a good free to paid conversion rate is.
0:05.0	But first and foremost, Neil, what do we mean by free to paid conversion rate?
0:08.0	Sure, so what I mean by a good free to paid conversion rate is when someone ends up buying your
0:15.6	product or service or software and they're signing up for a free version and
0:20.5	then how many of those people actually convert into a paid user or paying
0:25.3	customer. Yep. This is written by a guy, his name's, it's hard to pronounce his
0:30.2	last name, it's Lenny Rachitsky okay so he's a product guy he's got a great
0:34.8	newsletter a lot of people in tech subscribe to him and he's got a lot of data to
0:37.8	share he actually interviews a lot of people working in tech and so here is a table over here and if you can't see it we're going to read it out to you.
0:46.2	So what is a good and great free to paid conversion rate? So you can be using freemium. So freemium is you might have a crippled version of the product and self serve and that means you can kind of activate it yourself and play around with it I think
0:57.5	HubSpot allows you to self-serve and then you have freemium where it's sales assisted where you might have to talk to a salesperson to get involved with the
1:04.8	freemium or in some cases some features might be locked away and you might need to
1:08.5	talk to a salesperson and then you have a free trial we'll go with a free trial
1:12.1	I mean that's pretty 14 day free trial have a free trial, we'll go with a free trial, I mean that's pretty
1:13.4	14 day free trial, 30 day free trial, whatever, and then you enter in your credit
1:16.5	card, could be before or after, after you use it for a while.
1:21.1	Reverse trial, do you remember what a reverse trial is?
1:23.0	Reverse trial is, I think you have to opt out to not be charged or something like that?
1:29.0	Let's see, I think we both.
1:31.0	So anyway, I don't think Neil and I know what a reverse trial is, but we're going to go with the one, two, and four over here.
1:37.0	So here's what it sends in the table.
1:39.0	I think the reverse trial is you have to opt out or else you get a charge.
	...

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