How a free trial works
The trial length is set on the plan's price. When the customer subscribes, the subscription starts in a trialing state: no invoice, no charge. When the trial ends it becomes active, and the first paid period is billed.
The big choice is whether to collect a payment method at signup. With a card up front the trial turns into a paid subscription on its own unless the customer cancels, so fewer people start but more of them go on to pay. Without a card anyone can start, and the customer has to come back and choose to pay before the trial ends.
A free trial is different from a free plan. A trial ends; a free plan does not.
Worked example
Your plan has a 14 day trial and costs $29 a month. A customer subscribes on June 1 with a card on file.
- June 1: subscription created, trialing
- $0.00
- June 12: reminder that the trial ends in 3 days
- $0.00
- June 15: trial ends, first paid month billed
- $29.00
- July 15: second month
- $29.00
The renewal date is set by the end of the trial, not by the signup date.
Why free trials matter
A trial lets a customer judge the product on their own work before committing money, which is often the shortest route to a decision for a product people buy on their own.
It also sets the first billing date. Renewal dates, proration and reporting all run from the moment the trial ends, so the trial rules have to be exact.
Common mistakes
- Converting silently Charging a card without warning when a trial ends leads to refunds and disputes. Send a reminder a few days before, and check the consumer rules where you sell, since some places require one.
- Counting trials as customers Trials are not MRR and not paying customers until the first paid period starts.
- A trial longer than the time to value If the trial long outlasts the time it takes to see the product work, people forget they started it.