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The subscription-based market is expected to grow by over $750 billion in the next four years, making this a massive opportunity for businesses of all sizes. While you're setting up your subscription or membership then you might be asking whether a no-cost trial worthwhile to you as a content creator, online course provider, or small business owner?
What is A No-cost Trial?
As the name suggests the term "free trial" refers to free access to your product or services. It allows prospective customers to test your products before committing to payment. Free trials are extended as a gesture of promotion to ensure that customers appreciate and purchase your service after the trial has expired. It is also a great approach to increase customer confidence and help you close sales.
Can a free trial Will Benefit My Business?
If you are a subscription-based business, the free trials can cast the widest possible net of customers. The lasso method may differ according to your service however, your company can expect to earn a profit on the investment a free trial represents.
For online creators, free trials are most applicable to subscription-based services, software, and online course membership.
Subscription Services
Whether your subscription includes physical or digital items, online content, or streaming courses--a free trial can improve your profit margins and create a reliable monthly income. Some creators reward subscriptions through offering users a discounted rate to access every course or piece of content. You might also consider including exclusive insights and perks for members.
Software Services
In the event that software developers design their own software, they are able to sell their creation for a lump sum or earn income over time by running the SaaS (software as a service) business. The latter is favored by those who are convinced that their product can earn more over the long term. In the end, subscriptions to software provide easy, passive and ongoing income.
Trials that are free pay dividends consistently for SaaS subscription-based businesses. Recent research from University of Washington University of Washington found that 14.8% of free trial customers became paying customers. The study also showed that a 7-day free trial resulted in the highest retention of customers (6.4 percent) and revenue returns (7.91 percent) for SaaS products. Free trials are an easy start for those who are looking for a simple way to grow your software company.
Online Course Memberships
The surge of online courses as well as shareable content streaming services has paved the way for subscription-based memberships. Free trials offer an easy method to increase the number of members in your group and see your profits rise.
While available data is heavily skewed toward the most recognizable subscription-based streaming platforms (e.g., Netflix, Amazon Prime, etc. ), that data is undeniably in favor of the advantages that are of free trial offers. For example, a 2018 study found that 65% of Netflix trial members convert into paying customers. In a post-pandemic world that's much more home-based now than in the past and a trial offer for your content subscription isn't just advisable--it's smart business sense.
Alternatives for a Free Trial Promotion
You might be worried about your clients cancelling their trial before the due date, or perhaps your clients will benefit from a free trial and sign up several times with different details with no obligation to pay for your services. A free trial is not the only option to interact with potential customers.
Pay What You Want Pricing
Pay-to-try (or limited subscriptions)
Once you've become an expert in free trial, it's time to consider its opposite, paying for a trial. When you pay for a trial, customers pay a higher initial cost until they have reached your chosen threshold to unlock lower prices. It could result in a higher price for an order that is only one time vs. an affordable per-unit price to subscribe or purchase a function.