To Free or Not To Free: A Simple Framework for SaaS Pricing

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Ever wonder if your product should have a free version? This flowchart from Gaurav Vohra nails it. It’s a cheat code for deciding between freemium, free trial, or paid-only.

The Marketing Lesson

This visual breaks down a classic conversion dilemma into clear, logical steps. It forces you to ask: does “free” help me grow or distract me from profitability?

Why It Works

  • Eliminates guesswork with decision filters

  • Focuses on growth mechanics (network effects, data, competition)

  • Matches pricing strategy to real value drivers

  • Helps prioritize what “free” is supposed to achieve

Real-World Examples

  • Spotify → Freemium builds network and habit

  • Zoom → Freemium drives viral growth

  • Netflix → Free trial reduces friction to paid conversion

  • Basecamp → Paid-only to signal premium positioning

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