Through ads, Spotify supports a relatively frictionless free plan, where users have full access to the app and can play anything. Users only experience friction when they try to gain more control over their listening experience, like skipping through songs, downloading songs, and getting rid of ads. Through this balance, they mitigate the risk of friction while also pushing users to convert, since users will generally want full control over their listening experience. In addition, through personalization like Discover Weekly, Spotify increases user engagement and retention to maximize the customer’s lifetime value, knowing that full control and personalization will add value to a user’s music listening experience.
Figma attracts designers on its free tier by providing full access to its design features, adding friction only when users need to access collaborative features, such as permissions and shared libraries. This is where Figma pushes its users to convert, and its paid tiers are based on team expansions rather than feature-based tiers. The company accepts free usage as a growth driver because once teams upgrade, their value compounds through retention and expanded seat counts. Scale is seen as a natural constraint, making the conversion feel like a necessity rather than a hurdle.
Finally, The New York Times employs a paywall that allows readers to freelyaccess a limited number of articles before prompting them to subscribe. This allows readers to access the value of NYT through several articles, and then introduces friction when engagement and perceived value is highest (“I want to read more”), encouraging users to convert at this moment. They maximize value through content quality, brand trust, and offering bundles through Games and Cooking. The risk of free usage is mitigated through the lifetime value of deeply engaged, highly loyal subscribers who trust their content quality.
