Require Credit Card for Online Free Trial or Not?

[Sean Quinn]

I run an online product that offers a 14-day free trial. I'm struggling with whether to require a credit card for the free trial or not. I'm curious to hear the thoughts of other business owners.

Currently, I do require a credit card for the trial for the sole reason that onboarding is a bit of a process and thus takes time. Therefore whenever someone has committed their card, it's sort of a filter to show that they are committed to checking out the product.

The counterargument is that I could be missing a lot of folks who don't want to commit the card details and thus don't check out a solution that they might love.

What're your thoughts?

 

[Noah]

Unfortunately there are enough unscrupulous people who abuse credit-card signups for "free" offers to justify people being reticent - or I am, at least - so your barrier is probably real.

Consider ways to offer a free trial that minimises the set-up administration - can you offer limited functionality that would reduce set-up requirements? If you are confident that the quality of your product will shine through, you do not have to offer a functional free trial. For example, maybe build a browser-based prototype that demonstrates the functionality without requiring data entry, etc.

 

[Sean Quinn]

Unfortunately there are enough unscrupulous people who abuse credit-card signups for "free" offers to justify people being reticent - or I am, at least - so your barrier is probably real.

Consider ways to offer a free trial that minimises the set-up administration - can you offer limited functionality that would reduce set-up requirements? If you are confident that the quality of your product will shine through, you do not have to offer a functional free trial. For example, maybe build a browser-based prototype that demonstrates the functionality without requiring data entry, etc.

Interesting point about the limited functionality and the streamlined onboarding.

This could be an option. Also, sparked a thought that perhaps a happy medium might be a preloaded demo account that allows them to play around to get a feel before committing their details?

 

[APW]

Not a chance, once a free trial asks for any payment details I walk away.

 

[Sean Quinn]

Not a chance, once a free trial asks for any payment details I walk away.

May I ask why is that?

 

[APW]

May I ask why is that?

Scams, Fraud, accidentally signing up to a contract, hidden fees and more.

I signed up to a free trial with our booking software, no credit card and no contract. The company telephoned me 2-3 days in to see how I was getting on and to touch base then again half way through my trial and 2 days before it ended they phoned and talked about signing up which I happily did because the product was good, the support was consistent and the customer service was available when needed.

If I had to input my credit card my first impression would be that they only care about getting access to my money.

 

[Sean Quinn]

Scams, Fraud, accidentally signing up to a contract, hidden fees and more.

I signed up to a free trial with our booking software, no credit card and no contract. The company telephoned me 2-3 days in to see how I was getting on and to touch base then again half way through my trial and 2 days before it ended they phoned and talked about signing up which I happily did because the product was good, the support was consistent and the customer service was available when needed.

If I had to input my credit card my first impression would be that they only care about getting access to my money.

Fair points, thanks for adding that.

 

[Mr D]

I run an online product that offers a 14-day free trial. I'm struggling with whether to require a credit card for the free trial or not. I'm curious to hear the thoughts of other business owners.

Currently, I do require a credit card for the trial for the sole reason that onboarding is a bit of a process and thus takes time. Therefore whenever someone has committed their card, it's sort of a filter to show that they are committed to checking out the product.

The counterargument is that I could be missing a lot of folks who don't want to commit the card details and thus don't check out a solution that they might love.

What're your thoughts?

I prefer not giving a card until such time as I've evaluated the trial software.
Where I really want the particular access then yes I'll do it, using a different bank account with usually little in it. Doesn't prevent companies trying to nick money but does limit how much they can nick.
Where there are competitors and the software isn't something I need, I'll just move on to trying someone else who isn't demanding card details up front.

 

[Noah]

Fair points, thanks for adding that.

There's an icon for that.

 

[DontAsk]

Not a chance, once a free trial asks for any payment details I walk away.

This.

 

[pentel]

This.

This for me too

 

[Mark T Jones]

The reason I’ve never signed up for LinkedIns free trial of premium is because they need credit card details

The sub text being either they hope I will forget and just keep paying, of I won’t want to continue my subscription so they will make it an ordeal to leave

That said, LinkedIn are playing a numbers game and the benefits of premium are somewhat hazy.

If you are dealing with a distinct target audience who can see clear potential benefits they will be more motivated to give details.

 

[billybob99]

I have a virtual credit card and doesn't bother me if they ask for credit card for signing up - asking for one does filter out a lot of the duds.

It depends on the tool and what it does. I've seen many tools that are $49 - 99 a month but you get 14 days trial if you enter card details, if you want to use it you enter them, or you find something else.

After checking out yours, its probably best not to ask for a card upfront.

 

[The Byre]

Therefore whenever someone has committed their card, it's sort of a filter to show that they are committed to checking out the product.

No, it's a sign that they are gullible and careless with their CC details.

Also 14 days is nowhere nearly long enough to create familiarity. 30 or 60 days would be better and the SW should time-out at the end of that period.

 

[HouseSnagging.com]

It's a big put off for me, but I have signed up the past.

What about a demo version that can only output data to a certain level, or a lite version for free?

 

[billybob99]

I don't think anyone here has ever had a successful SaaS.

The startups that ask for a credit card during a free trial face 2 issues. Reduced sign-up but improved lead quality.

It's pretty straight forward, those with serious buying intent and those who can afford it will enter their card number, those that can't afford it will just bugger off.

Offering free trials costs money, to you - whether its hosting, storage etc.

If you don't ask for credit card details you're basically allowing people to create multiple accounts with different email address and letting them abuse you.

Each startup is different, I don't think its going to take 60 days for someone to get familiar with your product, its pretty straight forward.

The companies you are targeting, you would assume if they got any value from using your software, they would just sign up as a paying user instead of creating tons of free accounts.

 

[Scott-Copywriter]

If you don't request a credit card, you will get more duds, but you won't put off good quality prospects with a strong intention to buy.

If you do request a credit card, you'll get less duds, but you WILL put people off who were highly likely to become customers otherwise.

It's a point of principle for a lot of people, regardless of money or buying intention.

There's a very good reason why the practice has fallen by the wayside in recent years.

 

[Tin]

I don't think anyone here has ever had a successful SaaS.

Sorry to say but you're wrong on that assumption because I've worked alongside at least two SaaS members from here and both have gone on to be extremely successful online businesses.

 

[billybob99]

Sorry to say but you're wrong on that assumption because I've worked alongside at least two SaaS members from here and both have gone on to be extremely successful online businesses.

I guess it depends on what you define as successful and I doubt you would go around saying you worked with 2 complete duds from here.

 

[Tin]

I guess it depends on what you define as successfu

Yep, going into a SaaS idea without a penny and ending up a multi-millionaire coming out of it is a decent indicator of being a successful person.

 

[billybob99]

Sure....

 

[justinaldridge]

Sean, looking at your site it doesn't state anywhere on the register page that a credit card is needed. Have you removed it or do you then request it on the next step?

We have a couple of big clients in the SaaS space (also offering employee related software) and they don't require credit card details during the free trial sign up option. In fact, with one of them, when we removed that requirement and actually stated "No credit card required", their conversions increased significantly and it has remained that way for the last 2 years now.

Requesting credit card details is certainly an obstacle and does reduce conversions but it needs to be balanced with quality of leads and the the follow up conversion process after someone signs up without a credit card.

You need to test it and see how it works for your audience.

 

[AllUpHere]

As @justinaldridge so rightly points out, this question is very easy to answer with a little bit of testing. There is absolutely no need to guess at the right answer.

 

[Noah]

Sure....

Duane Jackson, started KashFlow, sold it to IRIS, was very active here, probably sunning himself on the Isle of Man as we write...

 

[estwig]

Duane Jackson, started KashFlow, sold it to IRIS, was very active here, probably sunning himself on the Isle of Man as we write...

I've met Duane, back in the day when UKBF had business presentations, which mainly involved presenting money in exchange for a pint or two!

A lovely fella with a very interesting and surprising, even shocking, story behind him.

 

[billybob99]

Duane Jackson, started KashFlow, sold it to IRIS, was very active here, probably sunning himself on the Isle of Man as we write...

Yes I've read his background and story. It was the very first accounting s/w I used several years ago and found it to be a load of bs before moving to FreeAgent but everyone has a price.

And you can hardly say "going into a SaaS idea without a penny and ending up a multi-millionaire" - when he received support from the Princes Trust to start up his venture.

Is it the same, if I know someone that sold a pharmaceutical company for £400m+ but only had a small gift of £100k to start it up back in the day. Its basically pennies I know.

Like I said you always going to big up your clients and get it a bit twisted when they've done well.

 

[itsnathanhere]

I have to admit any free trial that asks for my credit card info tends to send me running for the hills. there's a couple of mental barriers it raises for me about any company:

1 - I'm the potential customer yet I'm the one having to make the leap of faith when it comes to who trusts whom. The business is happy because they can get my money either way; I'm not happy because they can run away with my money and not hold up their end of the deal.

2 - Cancellation could be a massive pain. One of the reasons I hate credit card trials is because I've previously signed up to sites that promised a no-quibbles cancellation process yet they've either made it a pain by making cancellations phone-only (which severely limits the time and place I can cancel my subscription) Or - and this is a pet peeve - they tack on a little £5 a month subscription charge for another of their services that I never asked for and can go for months without me noticing it.

Not accusing you of any of the above - I'm sure you're running an honest and decent business - just a few reasons why I get turned off by credit card trials and why some of your potential customers might feel the same.

 

[Sean Quinn]

Sean, looking at your site it doesn't state anywhere on the register page that a credit card is needed. Have you removed it or do you then request it on the next step?

We have a couple of big clients in the SaaS space (also offering employee related software) and they don't require credit card details during the free trial sign up option. In fact, with one of them, when we removed that requirement and actually stated "No credit card required", their conversions increased significantly and it has remained that way for the last 2 years now.

Requesting credit card details is certainly an obstacle and does reduce conversions but it needs to be balanced with quality of leads and the the follow up conversion process after someone signs up without a credit card.

You need to test it and see how it works for your audience.

Justin, you are correct that it asks for the credit card on the next step of registration.

The reasoning behind this is it's good to get the contact details of people who are interested in registering but aren't happy committing their card details. This allows me to start a follow-up process and gather some data around the credit card barrier.

Interesting about the conversion rate increasing, I think I'm going to remove the barrier as a test for a month and see how things go.

 

[Inva]

I have never put my card for a trial and i never will. It's the equivalent of giving money to the shop owner to check out a product on the shelf, and if you don't buy it they return it. The only reason this exists is to make shady charges. Giving card details does not help me in any way to check out the product. Don't do it!

 

[justinaldridge]

I think I'm going to remove the barrier as a test for a month and see how things go.

Great. Let us know how it works for you! It looks like you have a lead follow up process anyway so you are in a good position to test it.

 

[pentel]

Justin, you are correct that it asks for the credit card on the next step of registration.

The reasoning behind this is it's good to get the contact details of people who are interested in registering but aren't happy committing their card details. This allows me to start a follow-up process and gather some data around the credit card barrier.

Interesting about the conversion rate increasing, I think I'm going to remove the barrier as a test for a month and see how things go.

So a company that harvests my information and then drops in the credit card requirement...

Would have me running for the hills...

Even worse than the companies that insist I fill in loads of information before quoting for delivery, they need a post code to quote, not name, address, card details, create an account... etc etc...

 

[Sean Quinn]

So a company that harvests my information and then drops in the credit card requirement...

Would have me running for the hills...

Even worse than the companies that insist I fill in loads of information before quoting for delivery, they need a post code to quote, not name, address, card details, create an account... etc etc...

We ask for the company name and an email address when registering. Standard information for using a business service, wouldn't classify that as extreme.

As mentioned prior, going to remove the credit card barrier for a month and see how that goes.

 

[Alan]

Interesting thread.

Testing is the way forward. I have tested both card and no card required for trial sign ups.

The results were that overall conversion to paying customers was the same in my case. However sign up to free trials was a lot higher without a card.

It would seem that people that want my product want it and are prepared to trial it with a card,and prepared to trust me / my platform. Most people know that the card details cant actually be used for unscrupulous charges, as it is so easy to register a charge back.

It may be true I lose a tiny percentage of people that are so untrusting that they won't give their card over, but if they are that untrusting they may not buy it later - so if the trust can't be established at the the point of 'sale' ( of the trial ) what changes? And if the customer starts off not trusting me, then I probably don't want them as a customer anyway

 

[Sean Quinn]

Interesting thread.

Testing is the way forward. I have tested both card and no card required for trial sign ups.

The results were that overall conversion to paying customers was the same in my case. However sign up to free trials was a lot higher without a card.

It would seem that people that want my product want it and are prepared to trial it with a card,and prepared to trust me / my platform. Most people know that the card details cant actually be used for unscrupulous charges, as it is so easy to register a charge back.

It may be true I lose a tiny percentage of people that are so untrusting that they won't give their card over, but if they are that untrusting they may not buy it later - so if the trust can't be established at the the point of 'sale' ( of the trial ) what changes? And if the customer starts off not trusting me, then I probably don't want them as a customer anyway

Alan, thanks for that.

So I guess with that in mind, you are requiring a card on sign up now? I'd be interested to hear what domain your product is in e.g. Enterprise Software.

 

[billybob99]

It may be true I lose a tiny percentage of people that are so untrusting that they won't give their card over, but if they are that untrusting they may not buy it later - so if the trust can't be established at the the point of 'sale' ( of the trial ) what changes? And if the customer starts off not trusting me, then I probably don't want them as a customer anyway

This.

 

[DuaneJackson]

And you can hardly say "going into a SaaS idea without a penny and ending up a multi-millionaire" - when he received support from the Princes Trust to start up his venture.

You can say that. I had sod all when I got out of prison. Yes, i got a £4K loan from the Prince’s Trust, the same as thousand of others. Not quite £100k.

The SEO help from Tin was a huge factor in the success of the business. I couldn’t have afforded to pay PPC rates for the volume of organic traffic he brought in. Best SEO guy out there, count yourself lucky if you can convince him to work for you.

And Brighton is far better than the Isle of Man. I’d rather pay all my taxes and live wherever I want.

Anyway, good luck to you!

 

[Alan]

So I guess with that in mind, you are requiring a card on sign up now? I'd be interested to hear what domain your product is in e.g. Enterprise Software.

WordPress Premium Plugins

 

[Digimem]

The first (and last) time I ever did was when I signed up for the free ancestry.com trial. I used it once for about 10 minutes and completely forgot about it until I got charged £100+ after the trail ended.

Luckily they were really nice about it and refunded me straight away