Thinking about offering a free trial?
Here’s what you need to know:
1. Churn is real.
Free trials can drive acquisition, but come with a catch—churn.
There’s a huge cohort of customers who want something for nothing.
If you don’t understand your trial cohort’s churn rate, keep your volume low to start.
2. Payments can get tricky.
Offering free trials opens the door to higher refund rates and chargebacks.
A spike can jeopardize your ability to process payments – no payments, no revenue.
Too many companies miss this point and lack redundancy in payment processors.
Set up multiple processors. It’s good practice for any subscription business.
3. Cash flow matters.
Scaling your free trial campaign requires serious cash.
You’ll spend on acquisition long before your subscribers pay a dime.
This is an exercise in cash flow planning—understand your subscriber volume thresholds.
If you don’t know how many free trial customers you can afford, you’re putting your marketing budget at risk.
Free trials are a powerful acquisition tool, but they’re not without risk.
Think about them strategically.
Learn the risks.
One person can unlock exponential growth
Case in point: Spotify and Sean Parker.2005: Sean Parker resigns
