6. Free to Paid
This is the Conversion Rate between Free users into Paid users (relevant for freemium or free trial products only)

There are three primary models for free-to-paid in SaaS
Most SaaS companies primarily follow three primary business models when offering free to paid products.
- Freemium β the product is offered free of charge, but money is charged for advanced features or functionality
- Free trial (without credit card) β the product is offered on a βtry before you buyβ basis without credit card information
- Free trial (with credit card) β the product is offered on a βtry before you buyβ basis with credit card details collected up-front
Freemium to Paid Conversion Benchmarks
- 1β10% Insight Venture Partners article on companies like 37signals, Dropbox, Evernote, GitHub, HootSuite, New Relic, SurveyMonkey, Weebly, Zendesk (2012)
- 3% for SaaS or B2B Web Apps β Lincoln Murphy from Sixteen Ventures(2010)
- 4% β Dropboxβs % paid of total userbase (2012)
- 30% β Slack (2014)
- 6% after 2 years; 4.9% of MAUs β Evernote (2010) & TC article (2009)
Free Trial to Paid (without credit card) Conversion Benchmarks
- 6β10% β Customer.io (2014)
- 10% with peaks as high as 18% β Justuno (2016)
- 15% β Totango study of ~100 SaaS companies (2012)
- 25% β Recapture.io (2016)
- 2β3% β 3 Minute Optimizer (2015)
- 2β4% β GoToMyPC / GoToMeeting (2011)
- 3.75% β Salesforce (2006)
- 15% β Chargebee (2016)
- 10% β Gutensite (2013)
Free Trial to Paid (with credit card) Conversion Benchmarks
- 50% β Totango study of ~100 SaaS companies (2012)
- 30β40% β 3 Minute Optimizer (2015)
- 40β45% β GoToMyPC / GoToMeeting (2011)
- 40β50% β Callwave (2011)
- 56% β Moz (2012)