SAAS Startup Grexit Skips Freemium Model [SAAS Pricing]

SAAS based productivity tool, Grexit is toying with its pricing plans and while the service was earlier free for users (beta version), it will now be priced at $1 per user per month.

Talking about the pricing, cofounder Niraj mentioned that:

We figured that since we’re a tool for businesses, they should pay us if they see value in our product. I think it works like a ‘self fulfilling prophecy’ – charging for it might actually MAKE them see the value.

Grexit lets you unleash the knowledge hidden in emails and enables team members to create a knowledge repository, shared with the right ACL (access control list).

As far as pricing is concerned, Grexit offers 30 day trial plans and does not offer any freemium model (recently, another Indian startup Mobstac too killed its freemium model).

Pricing SAAS Applications

While one could debate on whether killing freemium model is a good act or not, companies who decide to kill the freemium model are essentially eliminating bootstrappers (casual customers) who could potentially become a big customer in due course of time. And in a way, giving them a taste of their competition which might just be offering pay-as-you-grow model.

As a customer, do you prefer to go ahead with services offering try-and-buy(later) or pay-when-you-grow model? Importantly, payment frequency is one significant factor that needs to be kept in mind while deciding on pricing – not every company’s IT/finance system is geared to make recurring deposits automatically.

What’s your take?

Recommended Read: How to Price your SaaS Application – The Definitive Guide

Analysis: How SAAS Pricing Plans Have Evolved Over a Period of Time