Introduction

Equals made its product free to get more users, but the plan backfired. It nearly broke their business until they added friction again.

What's the Problem It Solves?

Many SaaS companies think offering a free plan will bring growth. This story shows why that’s not always true and how removing all barriers can hurt more than help.

Quick Summary

Equals first grew fast by carefully onboarding each user. They spoke to customers, understood their needs, and kept close contact. This helped the company grow and raise money quickly. But then, they wanted to grow faster by copying companies like Notion and Figma, so they removed all sign-up barriers and launched a free plan.

At first, more people signed up. But after a few months, usage dropped. Free users didn’t turn into paying ones, and the product wasn’t being used deeply. The team realized their sign-up process had become too easy. People joined but didn’t stick around or see the product’s real value. So, they made a big change: no more free plan. Now, new users must start with a free trial and enter credit card info. It added friction—but the right kind. Only serious users joined, and growth returned.

Key Takeaways from the Article

• A fast sign-up process is not always a good thing
• More users doesn’t mean more paying customers
• A free plan can lead to low-quality signups and weak engagement
• Adding a credit card step made users more committed
• Friction can be helpful when it filters for serious buyers
• Growth returned once Equals ended the free plan and asked for real commitment
• What works for one company (like Notion or Figma) might not work for another
• Sometimes the smart move is doing the opposite of what’s popular
• Building strong relationships with users matters more than fast onboarding
• Free isn’t always the answer-sometimes, it’s the problem

‍