New trial model and why

Jul 30, 2010

Cobot’s pricing model is very simple. Free for coworkers, for coworking spaces 1€/$1.50 per member and month. In addition we offer a free trial.

Up until last week that trial allowed spaces to use cobot for free for an unlimited time as long as they didn’t sign up more than 5 members. Now we have changed this to allow a trial with unlimited coworkers but only 30 days.

Why? There are 2 sides to this decision: our customers’ and ours.

First, as a coworking space, the more coworkers you have, the more time and effort you have to put in management. A space with 5 members probably doesn’t need cobot. So if you try out cobot with only 5 coworkers, you don’t really benefit a lot from it. It only allowed you to play around with a few test accounts, but not do the real thing, which is what a lot of people did. Now they can try cobot like they would use it as a customer.

Secondly, our business depends on converting as many trials into paying customers. While we don’t have any relevant statistics to prove this (yet, working on it), offering a trial that never expires isn’t really working towards a conversion. Coworking spaces can leave their account lying around for months, telling themselves to start using it when they “really need it”. With the 30 day trial we can nudge them a little better. Now a few days before the trial ends we send an email telling the coworking space they have a few days left. If they don’t use these last days there won’t be any more trial time.

Additionally, we delete their data 14 days after the trial has expired. While the reason for this is mainly privacy (don’t store data you don’t need), it also creates that extra urgency to act — sign up or leave.

We’re now starting to measure various metrics such as signups, trials and conversions, so hopefully we’ll be able to present a few numbers here soon. If you are interested in SAAS metrics, here’s a blog post that got us started. Stay tuned.


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