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Why killing our free plan wasn't actually the whole story

Original: Revisiting the fallacy of freemium: A year on

May 29, 2025
4 min read
Case Study
Intermediate
Revisiting the fallacy of freemium: A year on

Summary

This article revisits the 'fallacy of freemium' and explores how businesses can optimize their pricing and revenue models beyond just offering a free tier. It covers key considerations around subscription tiers, usage-based pricing, hybrid models, and aligning pricing with customer value.

Who This Is For

Founders
Product Managers
Growth Marketers

Key Takeaways

  • Removing friction isn't always the answer - requiring onboarding calls helped Equals learn faster and understand customer needs
  • The real problem with freemium wasn't the free tier itself, but putting too much burden on users to figure out value on their own
  • Going back to manual, unscalable processes can reveal crucial patterns that inform product development and market positioning
  • Verticalization and use case-specific solutions often work better than horizontal products with broad appeal
  • Pre-built templates and plug-and-play modules can deliver immediate value that makes self-serve viable again

Tools & Technologies

Equals Stripe ARR reporting tools SaaS metrics dashboards

Topics Covered

pricing-strategy revenue-models subscription-business monetization

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Topics

pricing-strategy revenue-models subscription-business monetization