You may have noticed that a lot of SaaS (Software as a System) applications out there have free versions available. Some of these versions can even be fairly expansive. When you’re just starting out in your business, these can be an absolute lifesaver. While you may feel like you’re gaming the system by using them, let’s discuss why you’re actually not.
The ultimate goal of any business is to MAKE MONEY. So why are so many out there offering up their stuff for free? Because in the long run, it actually helps them gain more paying users.
The markets are saturated right now with SaaS applications of varying purposes. If one company wants their product to stand out above the rest, they need to get more people to try it. The best way to do that is to offer it to them for free. Now, you may be asking yourself why they don’t just offer free trials instead.
The main reason is that these companies understand that really small businesses that are just starting out, probably aren’t interested in free trials because they already know they can’t afford to pay the monthly fee when the trial expires. These small businesses also don’t need all of the bells and whistles that the bigger more established companies need. Enter the free forever versions.
Let’s say you are looking for an ESP (Email Service Provider) for your email marketing. You don’t have a large email list at the moment, and you don’t plan on sending out very many emails. You’re probably more inclined to start using the ESP that offers a free forever version that looks like it fits your current needs than you are to start a free trial with one that may or may not work for you yet, but you will have to start paying for likely before you can assess if it’s really working.
The companies that offer these free versions understand this. They understand that if they can meet your business’ needs while you’re smaller, then you will be a hundred times (a thousand times maybe? A million times even?) more likely to scale with their product as your business grows than to shop around for another SaaS. You’re already rooted in working with the one you’ve been using, so it would be a hassle to start all over again with a different one anyway. They know this.
By using the free version, you aren’t gaming the system at all. You’re using it exactly as it was designed. So go ahead and sign up for as many as you think you’ll need. Mix and match them however you need to in order to run your business as best as you can. SaaS applications don’t mind. They’re trying to do right by you so that they can count on your loyalty to them as you grow.
All the best,
Ryanne Zender
Disclaimer: While marketing is based in part on statistics and psychology, it is not an exact science. Every business and market are unique. What may work for one business, will not necessarily work for another. There are no guarantees in marketing, and this post is for informational and educational purposes only and does not replace professional advice. You can check out the full list of disclaimers and disclosures here.
