SaaS
Free Trials are dead in the AI era
The math just doesn’t work out. Free tier users cost increased 10-100x because of inference cost. If your free tier uses LLMs and you pay the API costs, the math is horrendous: An average free user with 10-12 sessions a month and costs you around $2.80 per month. Heavy free users probably cost 10x. And even if 5% of users convert at $20-50/mo that just doesn’t work out. Potential fixes but none is optimal: Give free users cheaper models (but now you're demoing a dumber product). Credits,...
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