Free-to-Paid Conversion Template

For B2B freemium SaaS, 3-7% of activated free users converting within 90 days is a healthy range. Below 3% suggests the free tier is too generous or the paid tier is not valuable enough. Above 7% is excellent but rare. Consumer freemium products convert at 1-3%. The [PLG Handbook](/plg-guide) covers benchmarks by product category.

It depends on your strategy. No credit card required maximizes free signups and product usage data. Credit card required reduces free users by 50-70% but converts a higher percentage to paid. For most PLG products, no credit card on free is the right choice. Reserve credit-card-required for free trials of the paid plan, not for the free plan itself.

The free tier should include enough to deliver the core value proposition and create habit. The paid tier should enable capabilities that become valuable as the user or team grows: more storage, more collaborators, advanced features, integrations, admin controls. The trigger for upgrading should be a natural consequence of getting more value from the product, not an artificial restriction. See the [pricing tier template](/templates) for structuring this.

Yes, for users who show intent (hit a limit, click a premium feature). A 7-14 day trial of the paid plan, triggered at a moment of need, is one of the highest-converting upgrade mechanisms. Do not offer it to every user at signup. The trial is most effective when the user already understands what they would gain. ---