Many subscription businesses offer a free tier, or a free or paid trial, to enable consumers to try out the experience before becoming a paid subscriber. A critical factor for subscriptions therefore becomes the conversion rate from the free tier or trial to paid customer.

Another example: While it is true that bloggers want to “try before you buy” for most software (whether “trial” or “freemium”), this was not the case with hosting their website. It’s such a disruption and technical ordeal to move their website to a new vendor, they think of it as permanent, not temporary. Therefore, “free trial” is not the most... See more