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When freemium almost killed our startup

Original: Lessons from Going Freemium: A Decision That Broke Our Business

May 25, 2025
12 min read
Case Study
Intermediate
Lessons from going freemium: a decision that broke our business

Summary

Equals' founder shares how their freemium launch caused unexpected business challenges.

Who This Is For

Founders
Product Managers
Growth Marketers

Key Takeaways

  • Adding a freemium tier can actually decrease engagement, retention, and revenue despite increasing sign-ups
  • Removing onboarding friction isn't always good - sometimes friction helps drive better user engagement and long-term retention
  • Customer demands for freemium don't always align with what's best for the business or the customer experience
  • Manual, high-touch onboarding can be more effective than self-serve for complex products
  • The allure of seeing a new product is the strongest motivator users have - if onboarding is too easy, they may never return to complete setup

Tools & Technologies

Equals Product Hunt SaaS analytics platforms

Topics Covered

freemium unit-economics conversion retention

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Topics

freemium unit-economics conversion retention