SaaS and software marketing

Product-led growth
marketing.

Product-led growth means the product does most of the selling: people try it, get a result, then pay. The model you pick changes the numbers. Per 1,000 website visitors, the 2026 Conversion Report found freemium products get 90 signups and 5 paying customers, free trials 45 and 3.6, and card-required trials 35 and 10.5. In Australia, a card-up-front trial also carries the most legal weight: the Federal Court found eHarmony misled consumers on automatic renewal.

What product-led
growth actually means.

Product-led growth (PLG) is a way of selling software where the product is the main sales tool. Instead of a demo, a sales call and a proposal, someone signs up, uses it, gets a result, and pays. Marketing's job shifts: less about convincing people the product is good, more about getting the right people into it and to a result fast.

It isn't free stuff for the sake of it. A free plan or trial is a cost: hosting, support, and people who never pay. It earns its keep only if enough of those people reach the point where the product proves itself. Capterra's advice to Australian buyers says the same from the other side: run a trial of typical tasks to confirm the software performs as expected. Buyers are testing you. PLG is designing for the test.

Freemium, trial
or card up front?

There are three common doors. Freemium: a free plan with limits, forever. Free trial: the full product for a set time, no card. Card up front, sometimes called an opt-out trial: the full product for a set time, and it turns into a paid plan unless the person cancels.

The headline conversion rates make card-required trials look like the obvious winner. The 2026 Conversion Report, a survey of 200 software products, found trials that require a credit card see 30% free-to-paid conversion, more than five times those that don't. But the same report counts signups too. Per 1,000 visitors, card-required trials got 35 signups and 10.5 paying customers; free trials got 45 and 3.6; freemium got 90 and 5. Once signup rates are counted, free trials did worse overall than freemium.

Lenny Rachitsky's earlier survey of more than 1,000 products found the same shape: for freemium self-serve products, 3% to 5% is a good conversion rate and 6% to 8% is great, while free trials convert higher, partly because people only start them when they're serious.

ModelSignups per 1,000 visitorsPaying per 1,000 visitorsBest when
Freemium905One person gets value alone, in minutes, and free users cost little to serve
Free trial (all trials, the report's figure)453.6The product needs a few days with real data before it shows its worth
Card up front3510.5Buyers already know they want it and are checking fit, not exploring

Run your
own numbers.

The defaults below are the report's medians. Put in your own traffic, price and rates if you have them, and how long it takes a new user to get one real result.

Free model picker

Freemium, trial
or card up front?

The rates start at the medians from a 2026 survey of 200 software products. Change them to your own if you have them. It shows paying customers and new monthly revenue for each model, less what free users cost you to serve.

Freemium
Free trial, no card
Trial with card up front

Most new MRR

-

ModelSignupsPayingNet MRR

    Defaults: Conversion Report 2026 (ChartMogul, ProductLed), paying within six months. The report's free trial figure covers all trials, card or not, so a no-card trial may convert lower. Net MRR takes off the cost of serving the users who don't pay, for one month. A comparison, not a forecast.

    Time to value
    decides the model.

    Time to value is how long it takes a new user to get one real result. It decides more than any benchmark. A design tool where someone makes a usable graphic in five minutes can afford a free plan: the product sells itself in the first session. A job management system for a Newcastle electrical contractor, which needs price lists, staff and customers loaded first, can't show its worth in a 14-day trial unless someone helps.

    The most common trial length in the 2026 report is 14 days, used by 62% of products. That's a habit, not a law. Set the trial to the time a typical buyer needs to finish setup and use it for real, plus a few days. If that's a month, either offer a month or offer a guided start with sample data.

    The biggest marketing lever in PLG often sits inside the product: templates, sample data, an import tool for the spreadsheet or the competitor they're leaving. Every step you remove between signup and the first result does more than a cheaper click.

    'Free' has to
    mean free.

    Australian law has a lot to say about 'free'. The ACCC says an offer misleads when it's offered 'free' but on closer examination 'conditions apply', and that fine print must not conflict with the overall message. A 'free forever' plan that can't do the basic job, or a 'free trial' that needs a card and renews at full price without saying so clearly, is a risk today, not just from 2027.

    Card-up-front trials carry the most weight. From 1 July 2027 the Unfair Trading Practices Act covers free trials that convert to paid, with disclosure before sign-up and an easy way to cancel. If you run one, say plainly on the sign-up screen that it becomes a paid plan, on what date, for how much, and how to cancel online. The SaaS rules page has a sign-up check.

    Product-led
    isn't sales-free.

    PLG doesn't mean no people. The 2026 report found 80% of free trial products have human touchpoints when an enterprise user enters the trial. Larger buyers still want someone to ask about security, invoicing and setup. The trick is spotting which signups need a person, which the SaaS lead generation page covers.

    What I see most often

    What I'd check first
    on a product-led SaaS.

    1. 1

      A free plan that can't do the job

      Limits set so tight that free users never see the product work, so they leave instead of upgrading.

    2. 2

      Renewal terms below the button

      A card-required trial where the date and price it turns paid sit in small print under 'Start free'.

    3. 3

      An empty product on first login

      No templates or sample data, so a new user's first screen is a blank page and a setup checklist.

    The honest bit. Product-led growth doesn't suit every product. If your software needs weeks of setup, integrations with a client's systems or sign-off from three departments, a free plan mostly attracts people who'll never buy. A guided demo with a clear price can be the more honest door, and the cheaper one.

    Questions
    people ask.

    What is product-led growth?

    A way of selling software where the product does most of the selling: people sign up, use it, get a result and then pay, with less reliance on demos and sales calls. Marketing's job is getting the right people in and to a result fast.

    Is freemium or a free trial better for SaaS?

    It depends on time to value and cost to serve free users. Per 1,000 visitors, the 2026 Conversion Report found freemium got 90 signups and 5 paying customers, free trials 45 and 3.6. Products that show value in minutes suit freemium; products that need a few days with real data suit a trial.

    Should I require a credit card for a free trial?

    It raises conversion, 30% free-to-paid against far fewer for no-card trials, but cuts signups. In Australia it also means stating clearly before sign-up that the trial becomes a paid plan, when and at what price, and making cancelling easy. This is general information, not legal advice.

    What is a good free-to-paid conversion rate?

    For freemium self-serve products, Lenny Rachitsky's survey put 3% to 5% as good and 6% to 8% as great. Free trials typically convert higher, partly because people start them when they're more serious.

    How long should a free trial be?

    Long enough for a typical buyer to finish setup and get one real result. Fourteen days is the most common length, used by 62% of products in the 2026 Conversion Report, but products with heavy setup may need longer or a guided start.

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