Product Sense Pushups: Subscription Decisions — Paywall and Upgrade Flows

The NYTimes

For the NYTimes, I feel like their whole strategy is making the first year almost unrealistically cheap so people just sign up without thinking too hard. It’s $1 a week and then jumps to $4 after the year ends. Same thing with the family plan going from $2 to $7.50. If they asked people to pay the full $48 or $90 upfront, it would raise way more concerns, but splitting it into small monthly charges basically hides the real cost. The risk is people canceling after the price hike, but NYT is basically betting that most people forget or already built the habit.

Figma

Figma approaches it differently. They don’t do free trials, probably because it’s a tool people stick with for a long time and it has a learning curve. But they make up for it with a lot of flexible tiers. What I actually like is that instead of restricting team size, they restrict features and credits. So you can still collaborate, but you eventually upgrade when your workflow gets more complex. The only risk is making the free tier too limited, but they keep it just usable enough so new people don’t feel blocked.

Spotify

For Spotify, their whole thing is long-term retention. They love bundling with other companies because it gives them access to new users with basically no friction. My first time using Spotify was literally because of a T-Mobile deal that gave me three months free. After that ended, I switched to the student plan. And even my friends who graduated and lost the discount still use it because they’re already so used to the platform. So Spotify takes the short-term loss with these promos because once people build their playlists and routines, they basically never leave.

 

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