I am planning to launch my SaaS startup soon.I dont want to have free service.I think only about paid version. What do you think about free and paid version services?
GO FREEMIUM. In the future, the only SaaS that will be paid-only is enterprise - and even there trial accounts are common.
Give them a taste for free... either 15 day trial of the full software, or a subset of the full functionality. Don't say "limited free account", just say "free - create an account" and when people try to use advanced functionality give them the message. I can walk you through a number of paid tools I use which got me in with a free trial.
The assumption I generally hear and share with entrepreneurs is that if it were a good product, they wouldn't be afraid to provide a little of it for free. That mindset is starting to take over. Don't launch a paid only SaaS model that you have to change in 6 months after limited success.
What you need right now is traction, not a few paid subscriptions.
Schedule a call if you want to form an action plan for your specific market.
The debate between free and paid is really a debate about where you want your company to go. If your end game is an exit or acquisition then you want as many users as fast as possible- so free is best. If you want to build a business with a solid revenue generating model then you might as well start out paid but small and grow your clientele from there.
If your trial offering is compelling enough to get people to signup, then you can just go with that. I think the real value in a free account is if your app will be charging by number of users or usage levels. If so, then it may make sense to offer a free package for say 2 users, but require them to upgrade when they need more. This is especially powerful if your app is collaborative in nature.
My thinking on this is that if you think that there may be users that want to start off small to understand the value, but your app is so compelling that they will upgrade, then go with the free offering.
The other advantage of a free account is social referrals and word of mouth marketing. If people in your industry are all looking for what you offer, then the smaller ones that just need the free account will refer your product if they've become regular users of it. To me, this is a very compelling reason to offer the free version.
You may also want to consider letting the pay with a tweet or linkedin share in order to use the app each month in the free version. This could gain you a lot of referral customers that are larger and need more than the free version has.
Of course, you have to be sure your costs for having a free account are low enough so they are offset by the benefit.
Finally, you should test this. Find out if users that have a free account upgrade and track whether their social shares and referrals lead to more paying customers.
Hope this helps. Let us know when you are live and what you decide. I love taking a look at new SaaS products.
It depends on the software. Many platforms offer free versions built around something quantitative, like "x amount of emails being sent per month."
Also, what are the needs of your business? I wouldn't so much focus on free vs paid at the beginning. Instead, I would look at what you need the tool for and what requirements do you have around such a tool.