Earlier quoted context omitted.
I'm pretty skeptical of this approach. There are generally two reasons to offer free tiers: 1- hope users will upgrade to paid plans 2- hope free users will spread name recognition through word of mouth to people who will pay Generally speaking, "free tier" users are the worst- they demand more from support and expect to give nothing in return. Very few transition to paid users. What happens if you give your free tie…
No, I don't think that's right. I can name other scenarios: 1) I am at a megacorp. I want to rapidly prototype without going through purchasing / finance / bureaucracy. 2) I have a personal and a work account. I learn something on weekends on the free tier and use it at work. Both of those have happened (with me, as the user), and led to millions of dollar of business to cloud vendors. In the case of #2, the cloud ve…
In any case, if the free tier sucked, all of them would be unlikely to convert. People will remember that your product sucks, not that they had to pay to get decent performance.