Offering a free plan is a common standard operating procedure (SOP) for SaaS businesses. However, this pricing strategy wasn’t working out for Outseta.
While the membership software platform had more than 5,000 users, the “majority of them” were on a free plan. And Outseta’s modest team of five just didn’t have the capacity to support all of these users that weren’t bringing in any revenue.
So, the SaaS business decided to run an experiment: it ditched its freemium plan. If businesses wanted to use its product, they would have to sign up for a paid plan right away.
source https://blog.fusebill.com/pricing-strategy-experiments-with-your-saas-billing-software
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