Free Trial vs Free Credits

In the early days of SaaS, most products relied on time-limited free trials.

The idea was simple:

Give users unrestricted access for a limited time. If they experience the product's value, many would convert into paying customers.

But, there is another side to it.

When users don't add a payment method during the trial, the chances of churn increase significantly. Many enjoy the trial and simply disappear once it ends.

Still, for many products, offering a free trial without requiring a credit card still makes sense. It reduces friction and encourages more people to experience the product.

Now, with the rise of AI products, the model is evolving again.

Instead of offering free trials, many AI products provide free credits. Users can explore the product based on usage rather than time.

So, does a free trial still matter?

Without a free trial, users often create an account because it's free. But they never actually use the product. Their free credits remain untouched. They never experience the value you're trying to deliver.

A free trial creates urgency.

It encourages users to actively explore the product and discover its value. The expiry date also gives builders a natural opportunity to engage with users, gather feedback, understand their needs, and ultimately convert them into paying customers.

So the best approach depends on your product.

1. Traditional SaaS may benefit from time-based free trials.
2. AI products often fit usage-based credits.
3. Some products can combine both for better activation and conversion.

At Kelviq, we support both models, so you can choose the one that fits your business or combine them to maximize conversions.