Freemium: Give Users a Taste
Freemium is a popular pricing model that gives users free access to a limited version of your app, often indefinitely.
Key features:
- Users can access basic features for free, while premium features or content are locked behind a paywall.
- No upfront commitment is required, which lowers the barrier to entry and easily attracts users.
Best for:
- Apps that deliver core value through limited functionality, but encourage users to upgrade for a better experience.
- Example: Spotify offers free music streaming with ads, but encourages users to upgrade to an ad-free premium subscription.
Free Trial: Showcase the Full Experience
A free trial gives users full access to all of your apps's features for a limited period of time, such as 3, 7 or 14 days.
Key features:
- Users can experience the full functionality of the app upfront, without restrictions.
- Apple provides some of the best mechanics for automatically converting users from free trials to paid subscriptions. However, most users now know how to turn off auto-renewal, so relying on them forgetting about the trial is not a good strategy.
Best for:
- Apps with high perceived value or premium features, such as fitness apps, video editors, or meditation platforms.
- Example: Calm offers a 7-day free trial of its meditation library before asking users to subscribe.
Reverse Trial: Hook Users First
A reverse trial flips the traditional approach by giving users access to premium features during the trial period and then transitioning them to a freemium plan afterward.
Key features:
- Users start with full access, experience the premium value, and are downgraded to a free version if they don't subscribe.
- This approach helps retain users who aren't ready to pay, and keeps them engaged through the free tier.
Best for:
Apps that want to showcase premium features to increase conversions, while still retaining users who may not be ready to pay right away.
Pros:
- Showcases premium features first, increasing the likelihood of conversion.
- Retains users by downgrading them to a free plan rather than losing them altogether.
Challenges:
- Requires careful balancing to ensure the free tier remains compelling without undermining the value of premium features.
- In this case, Apple doesn't provide an in-app subscription mechanism, so you'll have to do it manually.
- Example: Canva allows new users to use premium tools during a trial period, then downgrades them to the freemium version if they don't upgrade.
Comparing Freemium, Free Trial, and Reverse Trial for Apps
| Advantages | Challenges | |
|---|---|---|
| Freemium |
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| Free Trial |
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| Reverse Trial |
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Which model should you choose?
Consider the following factors when deciding which model is right for your app:
Freemium: Ideal for apps with broad appeal and a simple core value proposition (e.g., streaming, gaming, or social apps). If your focus is on scaling your user base, freemium is a good choice.
Free trial: Best for apps with high perceived value or those that require exploration (e.g., fitness, productivity, or creative apps). If you need to show the full potential of the app to drive conversions, a free trial works well.
Reverse Trial: Suitable for apps that want to entice users with premium features, while retaining them even if they don't convert. This approach provides flexibility for apps in competitive markets, such as photo editing or subscription-based services.
Conclusion
The choice between freemium, free trial, and reverse trial depends on your app's goals, user base, and monetization strategy. Freemium works for broad reach, free trials drive quick conversions, and reverse trials balance engagement and retention.
Experimenting with these models and analyzing user behavior will help you determine which approach works best for your app.
