What are the best monetisation models you have seen so far?
For me, the best monetisation model is CapCut (especially that psychological side of that).
They let me use their free desktop version the whole time, so I started being dependent on them.
I made videos with this application for about 2 years, whether for clients or for myself.
The control was easy, with a wide selection of effects and customisation.
Until one fine day, they made my favourite and most used functions PRO features, one video export was without a watermark, and if you wanted to have the other videos without a watermark, you had to switch to the PRO plan.
So I was willing to pay €120 per year (and I would probably be willing to pay more in that situation).
On the contrary, the monetisation model that I hate – Adobe: they also charged me if I wanted to cancel my subscription.
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Can you share with us which monetisation model you found brilliant?
Replies
I'm surprised you find this monetization model convincing. To me, it borders on blackmail—getting users hooked into a workflow, possibly involving lots of data, and then one day starting to charge for a feature that was previously free. While this approach might work for larger companies, I think it's a surefire way to drive users away from your product.
@stefanfis Thank you for sharing this perspective; it has made me reflect on my spending habits, as a Chinese users have become accustomed to what you refers to as "blackmail-style" commercialization logic. Sadly to admit that.
@gin_6078 Oh, the comment with my rather blunt "blackm…" word was indeed published. The comment system told me it contained an invalid word and I wrote a softer version. I hope it isn't too harsh, sorry.
And yes, this definitely is depending on the experiences our users made so far. Ten years ago, a subscription model for software–especially as a small or solo dev–would have led to bad reputation. Now it's completely normal.
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@gin_6078 @stefanfis Stefan, of course, I would welcome a one-time payment for CapCut because when you are pushed to a subscription, you are potentially overpaying the value of the tool compared to what you can make from it. And I'm sure the new tool Edits from Meta will be the same case. But I couldn't find anything better at the moment. I used DaVinci Resolve, but it is somehow less user-intuitive to me compared to CapCut. (Anyway, I am still looking for some alternative).
@gin_6078 @stefanfis @busmark_w_nika I can see both sides of this debate. On one hand, the ‘dependency model’ can feel manipulative , you get used to a tool, build it into your workflow, and then suddenly, the features you rely on are locked behind a paywall. But on the other hand, for companies, it’s a way to sustain themselves without pushing aggressive ads or data selling.
I’m curious; do you guys think there’s a middle ground?
Like a model that offers enough value for free to build trust but keeps premium features genuinely worth paying for?
Headliner
@stefanfis I do think it is the reality a lot of SaaS tools face. Particularly in the video clipping world, most of these tools are exiting their startup phase and are needing to drive revenue as they mature. Yes, adding paywalls to previously free features will drive users away, but, from the business POV these users were just costing them money—in order to continue running, they ways to convert free to paid.
Does it suck for the user, absolutely, but at the end of the day, it has to happen sometimes.
@elissa_craig Yes, I completely understand this. My concern is mainly about how we will communicate it. If the users had the impression the free features will stay free, I think only rather established projects will get away with. At least you have to explain it rather thoroughly.
Headliner
@stefanfis totally agree. Active users should be sent some type of comms about the change and when it will go into affect.
@elissa_craig @stefanfis I imagine, if you are truly delivering value to your users, and your users will want you to stay alive as company, then why not make the trade of value for cash?
Burning VC money was something of the 2010's, but thi decade things have changed, COVID got people more used to paying for online services, and a lot of them are more than willing to pay in exchange for a great product that makes their life easier.
So, I don't see why there would be a problem to charge a fair fee for your product.
I'm with @aeromaniax in regards to the freemium model for most products. It allows you to use the product without the pressure of a dropdead trial end date. I've had too many products that I had every intention of utilizing the trial, then things blew up and I couldn't get to trying out the product. The trial ends, I don't buy it because I didn't use it and I can't try the trial again because I've already signed up.
From a business standpoint, however you need to make sure that the usage levels and access is at a point where you're comfortable with the your costs. Does anyone have any experience with setting up the freemium models? I'd be interested to hear how you do it. We're working on coming up with our pricing model.
@aeromaniax @bryce_york_ag depending on the app fremium is tricky as you have to pay hosting and support costs for users not contributing to revenue. So depends on resources and backing, if you have the funds sure it's a good way to go, a lot of users will sign up, but if you are bootsrapping (like us) it could be constraining. We have used both, but now use tiered paid plans and then offer discounts, coupons and promo deals as needed - we even allow teams to make us an offer, so if they're just starting out we will cut them a big break. Hope that helps...
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@aeromaniax @bryce_york_ag @light_silver This is such a good point – resources matter, and when something is free, it means they use either ads or sell the data if they do not have funding.
@aeromaniax @light_silver That helps a lot! We're bootstrapping too and I was worried about the costs associated with the freemium. I like your approach with promos and coupons as needed.
Prototypr
I think most the AI code tools seem smart with pricing in such a competitive space.
They offer a baseline product for the monthly fee, then make you pay for premium credits if you want faster responses and access better LLMs
e.g. in Cursor, the paid tier starts off and they give you a small quota of fast requests, then it starts running really slow, and then becomes pretty much pay to play (on top of the monthly sub)
I don't know if I found it brilliant as a customer, it's not bad though. Maybe it's a good model for the companies, but they need to make more money too
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@graeme_fulton I feel you, but from the perspective of the company, it is the best scenario (not very convenient for the user, but when they are willing to pay, we probably found somehow equilibrium).
Graphify
Adobe really is a pain, especially if I tried to cancel my subscription. It really is a bad customer experience and nothing you would expect from a big company like them. The best monetization model for me as a user would be the freemium plan, with a generous free tier, especially if you can use a lot of PRO Features to test them. That way, I can test the app , before making a decision of buying it. I hate it, if you have most features behind the paywall and therefore can't really test the app and therefore don't know if it is the right fit for me.
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@hussein_r I totally forgot. Is Figma been acquired by Adobe? Because they had some agreement, and it would be a nightmare if Figma were to monetise the product this way. BTW, I think that Adobe products are not so good. :D I found better alternatives than them.
Headliner
@hussein_r Adobe is GREAT if you know how to use Adobe. If you are looking to learn and just try it out, the pricing often is too much for people to ramp into.
I feel like there are few businesses that can leverage Adobe pricing and they must be established, proven, and trusted by a large/niche audience to solve specific needs.
A good enough freemium is my favourite. I find the "start a free trial" pretty discouraging, because it forces me to just go through all features in a single, fast run .. but there're multiple products, and comparing them is at the very least tiring. I still use a lot of apps that have the baseline features free - and tend to choose them from the start - and for a big number of them I pay a sub now.
BTW my favourite thing with CapCut is that it tells you directly "pay this much, you have access to everything". Flat fee, instant access, 0 friction basically.
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@aeromaniax Do you have a certain brand in mind which have such a good monetisation model? Can you name them?
@busmark_w_nika I'm thinking about CapCut (especially), Canva, Trello (which still works great totally free).. and another one I have is Mailchimp.
Also the Google Cloud suite is amazing (I have the subscription for Gemini, which boots the Drive and other features as well).
So they have free features that kept me hooked for weeks (maybe months, on some instances like Google Cloud and Trello) and then gave me so much value for acceptable prices that I've been paying them for years now.
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@aeromaniax Oh, I do not want to pay anything to Google Cloud because it is nothing worse than loosing access to your files :D
@busmark_w_nika Tbh I had the same concern for Notion before, so now I use a combination between Notion and Obsidian (that helps with my obsession of having my data locally as well).
Did you have any problems with Google? I keep finding old artifacts from even 10 years ago on the Google Drive lol, some even randomly saved from old phones.
@busmark_w_nika I get the logic, build dependency, then introduce a paywall. It’s a fine line between creating value and feeling like a bait-and-switch.
I’m curious, though , have you come across a product that balanced free and paid features perfectly without making you feel cornered?
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@ambika_vaish I think that Figma has given me a lot of space to create for free, and when I want to have completely new updates, I am offered a PRO plan. This kind of model is friendly to me.
Absolutely agree with you — CapCut PRO really nails the monetization model. They let you get hooked with the free version, offer tons of editing power upfront, and then slowly introduce premium features once you're already invested. It’s smart, psychological, and honestly fair — because by the time you're ready to upgrade, you want to.
I've been using CapCut for all sorts of projects too — client reels, short-form content, even YouTube edits. It's smooth, fast, and packed with effects that make videos pop. And let's be real, even the PRO plan is more affordable and straightforward than Adobe’s ecosystem.
Speaking of smooth experiences, if you're into editing and need non-stop music, you can download Spotify Premium APK for free and enjoy ad-free tracks while you work. A good workflow always needs a good playlist 😉
So yes, CapCut PRO all the way for me. Curious to hear what models others found brilliant!
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@abdul_ella Now, Edits is available 4free by Meta, it can be a potential alternative :)
Headliner
I feel like most SaaS tools have had to cut their 'free' offerings, but, it's understandable.
To me, allowing a user to successfully create 1 project without limits is great. They get to fully demo before deciding if it's worth the money. Especially since so many SaaS tool involve AI addons and video, COGs has gone up.
Not only is the 'one free' approach good for the consumer, it helps the company lower operating costs.
On the flip, having a pay wall for everything is great for the company, but bad for the customer. They don't know what they are getting into and can easily be trapped by the plan buyout.
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@elissa_craig I am aligned with this one demo approach. As soon as I want to generate the first thing and it asks me for money, I am closing the page :D
@busmark_w_nika ,
Totally agree, Nika. CapCut nailed that "hook first, pay later" strategy. It's subtle but powerful. let users build habits, then introduce friction just enough to make the upgrade feel like a no-brainer. Smart move.
On the flip side, I'm with you on Adobe. Penalizing cancellations feels like a trust breaker.
One model I really admire is Notion’s. They give away so much for free, especially to individuals and students, and only start charging when your team scales or you need advanced features. It feels fair, and it grows with the user.
Curious : have you come across any models that backfired badly or felt manipulative?
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@mina_kumari1 I think that I have never jumped on a manipulative tool. Of course, I was scammed but it was usually related to crypto :D
Kalyxa
The Calm app comes to mind. They hook you with a generous free tier—just enough to feel the benefit—then gently guide you toward premium with new content, not restrictions. No pressure, no tricks. Just a clear upgrade in value when you're ready.
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@parth_ahir I am having a look at their pricing – quite affordable and friendly prices + they work with family packages and gifts. That is a really good model.
WeCooked
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@imran_razak I partially agree – as a user, I enjoy that I can use DuoLingo and learn for free (tho someone added me to the family package, so I am enjoying it free anyway :D ). The only thing that could distract me was ads.
WeCooked
CapCut is indeed a product of ByteDance, and their other platform, Dreamnia, employs a similar business strategy. It’s undeniable that creating user dependency before introducing charges is a clever tactic. I find myself paying for certain products simply because I’ve grown accustomed to using them. What’s even more impressive is that as long as the pricing isn’t outrageous, I can easily convince myself to purchase it—just because I’m so used to it!
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@gin_6078 I didn't know about Dreamnia. Do you know about any other solutions/products with a good pricing strategy?
@busmark_w_nika For me, effective commercialization is closely tied to the characteristics of the product. If a product is used frequently, a subscription model is often the best approach for commercialization. On the other hand, if the product is used infrequently, options like one-time purchases or tokens may be more suitable.
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@gin_6078 One-time are my favourite (from the point of view of the customer). Unfortunately, it is not from a few of the companies. :D
Hey @busmark_w_nika, you’re spot on about that dependency trick 😆👌I’ve seen the same playbook work wonders for Canva: you start with full free access, build all your designs around its intuitive tools, and then when you need those brand kits or premium assets, upgrading feels like the natural next step rather than a hard sell.
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@talshyn yep, it looks so innocently, it almost looks like you won't pay anything, you press export and: "you are using premium elements in your design" 😂
Clay. It's an absolute money machine. Free + expensive (but worth it) subscription tiers + credit usage out the wahzoo.
here's a super interesting breakdown. https://goodbetterbest.substack.com/p/deconstructing-clays-pricing-strategy
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@emikes919 I hear about them for the very first time, and dope, they have such a cool website!
@busmark_w_nika yeah they're insane. I've paid them alot of money and it's been totally worth it. SUPER powerful
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@brokenpanda Shouldn't there be a freemium plan where users can probe the product and its potential qualities?
Thanks for sharing your experience, Nika! CapCut’s freemium model is indeed a smart approach—by letting users build dependency through a robust free tier, they create strong motivation to upgrade. The psychological aspect of gradually introducing premium features works well when the free version is genuinely valuable. I also appreciate transparency and flexibility in pricing, so I totally get why Adobe’s restrictive cancellation fees can be frustrating.
One monetization model I find brilliant is Spotify’s freemium approach combined with personalized recommendations. They hook users with a generous free tier supported by ads, and the seamless upgrade to premium removes ads and unlocks additional features. Plus, their continuous investment in user experience keeps people willing to subscribe monthly. I think models that respect user choice and gradually demonstrate value tend to work best in the long run. What do others think?
Totally get what you mean about CapCut - that gradual value build-up before asking for payment is really smart psychologically. For me, the “freemium with meaningful features unlocked” model works best when it feels fair and respectful of users’ time and effort.