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05 Mar 2025
21m

Bringing Back Free

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REWORK

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This REWORK podcast episode discusses 37signals' decision to reintroduce a free plan for Basecamp, after previously removing it. The hosts debate the costs and benefits of offering a free version, weighing increased user exposure against potential loss of revenue from paid subscriptions. They highlight a successful MailChimp example and share their own experience of a rigorously managed six-month experiment in 2015 that initially showed positive results but ultimately proved short-sighted in the long run. The discussion also touches upon the importance of long-term A/B testing and the limitations of relying solely on quantifiable metrics in business decision-making. Early data suggests the new free plan has more than doubled weekly sign-ups.
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