Freemium vs. Free Trial: Which GTM Will Help You Grow?

The choice between Freemium and Free Trial models in the SaaS industry depends on various factors such as market size, product experience, pricing compared to competitors, target audience, customer acquisition cost, and user onboarding. Freemium models excel in user engagement and lower customer acquisition costs but require a large user base for profitability. On the other hand, Free Trials can lead to higher immediate conversions and allow users to fully experience the product but may result in fewer sign-ups. Both models have their merits and challenges, and the decision should be based on the growth strategy of the business - whether it's Dominant, Differentiated, or Disruptive. Success stories from companies like Intercom, Netflix, MailChimp, and Slack demonstrate the effectiveness of both models in different contexts.