Read the original at Lenny’s Newsletter ↗lennysnewsletter.com · subscriber post
By Lenny Rachitsky · lennysnewsletter.com · @lennysan on X · YouTube · LinkedIn
Bobby Pinero, CEO of Equals, recounts how adding a freemium plan and removing onboarding friction initially spiked user counts but then stalled engagement, retention, and revenue. The team reversed course by reintroducing friction, such as a credit card and a 14-day trial, which restored growth. The post closes with guiding questions for judging whether freemium suits a given product.
Subscriber post — summary only01Key takeaways
- Initial signup spikes can mask weaker long-term engagement, retention, and revenue, so judge freemium on sustained usage.
- Onboarding friction and pricing model are linked; changing one usually requires rethinking the other.
- Removing setup steps can remove the motivation users need to reach their first moment of value.
- Requiring a credit card and a time-limited trial added commitment and urgency that improved activation.
- Freemium tends to fit products with a huge user base, very short time to value, low serving costs, and viral or network effects.
“The goal of onboarding is for people to get their first moments of value from your product.”Bobby Pinero · Lenny’s Newsletter
“Maybe freemium isn’t for every product”Bobby Pinero · Lenny’s Newsletter
Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.