Paywalls SaaS: Where to put Paywalls in PLG?

If I was responsible for PLG paywalls (again!) and wanted to maximize conversion, here's the strategic framework I developed at TrustCloud: 📈📈📈

The Five Strategic Pillars of Paywall Optimization

1. Deep Customer Insights Analysis 🔬

First things first, you need to understand what makes your high-retention customers tick. At TrustCloud, we dove deep into user behavior, identifying the features that kept our customers coming back. We focused on key activities such as visiting policies, exploring integration setups, and completing evidence tasks. These weren't just random features; they were the lifeblood of our product and the core functionalities that drove engagement and retention.

2. Identifying Unique Value Propositions 👍🏼

Next up, you've got to pinpoint what sets you apart in the market. Ask yourself what features are uniquely yours and what consistently resonates in customer conversations. For us at TrustCloud, our standout offerings were clear: we provided a free trust portal setup, automated security questionnaires, and an essential SOC 2 program framework. These weren't just nice-to-haves; they were our secret weapons and key differentiators in a crowded market.

3. Growth Mechanics: Unleashing the Viral Potential 🔄

In the world of PLG, viral expansion is king. Our philosophy was to make sharing not just easy but irresistible. We implemented features that allowed for unlimited employee invitations, unlimited customer connections, and unrestricted sharing capabilities. Why put artificial limits on your product's growth potential? Let it spread like wildfire.

4. Strategic Boundary Setting: The Power of "No" 🙅‍♀️

Here's a hard truth: not everything needs to be behind a paywall. In fact, most features shouldn't be. Be strategic about what you gate. Your free tier should deliver so much value that users naturally want to level up for more.

5. Intelligent Usage Limitations 🧪

When you do implement paywalls, be smart about it. At TrustCloud, we experimented with intelligent usage limitations such as reduced security questionnaire submissions, selective integration restrictions, and limited trust badge displays. The key is to maintain an exceptional user experience while creating clear, value-driven upgrade paths.

Navigating the Tricky Waters of Paywall Discussions

Let's be real: early conversations about paywalls can be uncomfortable. But they're necessary for growth. My approach is straightforward: move quickly, establish clear conviction, experiment rapidly, and learn relentlessly. Don’t get bogged down in endless debates; get out there, try things, and iterate based on real-world feedback.

The Fundamental Truth of PLG Paywalls

Here's the thing about Product-Led Growth: it's not about restricting value; it's about creating an irresistible pathway to deeper engagement. Your free tier should be so compelling that upgrading feels like an exciting next step rather than a grudging necessity. Every limitation you put in place is an opportunity to showcase your product's true potential.

In the world of PLG, your product is your best salesperson. Make sure it's telling the right story at every stage of the user journey.

So there you have it – my battle-tested framework for PLG paywall optimization. It's not just theory; it's a strategy forged in the fires of real-world application. Give it a shot, and watch your free-to-paid conversion rates soar! 💡

This week, I am writing about Paywalls with #plg and #saas. Please follow or subscribe to me at growthwithgary(.)com 👈👈👈

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I am Gary Yau Chan. 3x Head of Growth. Product Growth specialist. 26x hackathon winner. I write about #PLG and #BuildInPublic. Please follow me on LinkedIn, or read about what you can hire me for on my Notion page.