Freemium vs. Free trial: Which converts better for B2B SaaS? 💰

Since we are launching our product, free trial works the best for us as it creates immediate exploration of the full product to drive quicker conversions.

I think you should first try to get volume of users, so let them use your product for free. After some time add paid-only features. First try to have users committed to your product and let them feel that they need it because they now are used to use it daily.

I think free trials convert better for B2B SaaS if you want faster decisions. It lets users experience the full value right away. But freemium is great for keeping people around longer until they’re ready to upgrade. It really depends—are you aiming for quick conversions or long-term engagement?

It depends upon the product-type. For example - Cxful UIUX Suite, it's built on Figma. There's no we we can revoke access after a certain time, so limited time free trial is not technically possible. That's why, we have a Free version of the product. It is free forever.

Each model has its own pros and cons. One may work better than the other depending on industry, incumbents/competitors, target audience, use case, etc. Whatever model works, have any of you considered supplementing your GTM motion with interactive demos helping (potential) users to try out the product before they start a free trial or letting them "try" paid features that they can't access in a freemium model?

Great question! From my experience, offering a free version works best when you can track how users are adopting your product. You can use prompts and nudges to help them discover features, which can encourage them to upgrade to a paid plan over time. A free trial, on the other hand, creates a sense of urgency. It's good for customers who are ready to explore your product fully but within a limited time. This often works well if you have a sales team to assist them during the trial. So, it depends on your product plus GTM motion and how you want to engage users. If you can guide users within the product and show value over time, a freemium model can be powerful. If your product needs deeper commitment to shine, a free trial might be the way to go.

Free trials can definitely drive faster conversions in the short term. But I've found freemium models tend to have higher retention and LTV in B2B SaaS, since users get hooked on the core product before paying. It depends on your goals - trials for quick revenue, freemium for sustainable growth. Would love to hear others' experiences!