Free trial VS Money-back Guarantee 💰
Matej Cabadaj
24 replies
Which one do you prefer as a user? Do you have experience with one of them in your startup? 🤔
Replies
Rajesh Bhimani @rajesh_bhimani
Personally, I prefer the free trial approach, as it allows me to explore the product's full functionality upfront.
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@rajesh_bhimani Thanks a lot, Rajesh! Would you say that requirement of credit card before (when starting the trial) is a problem? Or do you prefer when there is no CC required?
@matej_cabadaj I personally don't see the credit card requirement as a problem. I believe it adds a meaningful level of commitment, helping to streamline the conversion process for genuinely interested users. What's your take on this?
I will recommend 7-14 days of free trial and still no convinced offer Money-back Guarantee.
Free trials are beneficial for users to experience the product's features, interface, and performance before committing financially. Conversely, a money-back guarantee provides the flexibility of full access after purchase, with the assurance of a refund if expectations aren't met.
Free trial! Usually if an app ask for any payment, even if I can ask for a refund, I will look for a competitor
I don't have any experience with this from a startup founder's perspective. But from a user's perspective I feel like a free trial is the most common way to go these days. That's especially true for software and other services we buy online. I feel like nowadays I see money-back guarantees offered more for physical goods I might buy over the phone and have shipped to my house. Maybe that's just me?
@avery_jolly Yeah, I see the same - software usually has trials, courses or physical goods have money back guarantees 🤔 Makes sense, thanks a lot for the insight!
A free trial allows users to access the full functionality of a product or service for a limited time without payment. In contrast, a money-back guarantee involves purchasing the product or service upfront, and if dissatisfied within a specified period, the buyer can request a refund.
Great topic Matej. It actually made me reflect on myself😀 I plan to add on my startup a 14 day free trial (no card required) for monthly and annual plans, and a 30 day money back for the lifetime deal.
But as a user, the free trial with no card required is a much more appealing offer. No risk on my part, and if I need the service, I’ll gladly pay for it.
@claudiu_cogalniceanu Thanks a lot for the great answer! I think you're right! 🤔 This morning, I was reading an interesting article, maybe you will find it helpful too ☺️: https://www.quicksprout.com/what...
@matej_cabadaj that was a great read! Thanks for sharing! In the end, I think it all depends on the audience. If you have an expensive product (over $1000/month), a money back guarantee would work better. If you have a cheap one (under $50/month), a free trial would be best - maybe with limited features🤔 I will definitely test this myself
@claudiu_cogalniceanu Exactly what I'm thinking as well. Seems like free trial is the way to go for me 🤓
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@claudiu_cogalniceanu I agree, personally. If I don’t have to enter credit card, I’m about 90% more likely to try it unless it’s solves a problem I desperately need and it’s superior than competitors.
Free trials are beneficial for users to experience the product's features, interface, and performance before committing financially. Conversely, a money-back guarantee provides the flexibility of full access after purchase, with the assurance of a refund if expectations aren't met.
Stylar
Great question! As a user, I personally prefer a money-back guarantee. It gives me the peace of mind to try out a product or service without the pressure of a limited trial period. Plus, if I'm not satisfied, I know I can get my money back.
In my startup experience, we've actually implemented a money-back guarantee, and it has worked really well for us. It helps build trust with our customers and encourages them to take the leap and try out our product without any hesitation.
What about you? Have you had any experience with either of these approaches in your startup?
Looking forward to hearing your thoughts!
@stylar_max Thanks a lot Max, very helpful! So you have not added trial period into your startup? 🤔 So the user had to pay before testing, right? Did you focus more o highlighting the main features on the landing page then? 🤔 😊
I am just facing this decision right now for my upcoming mental health platform 😅 (soon I will be able to finally show more 🤩)
As a user, I actually like free trials, but when I feel like I really need the product, I don't care too much whether it requires payment or has a trial. But this changes once the price is higher than a few bucks.
Free trial is great idea.