Trial signups spike but almost none convert to real payments
A SaaS founder removed all free usage entirely, requiring a credit card and a 7-day trial just to try the product. This filtered out casual users and attracted people who genuinely wanted the tool.
The payments then showed $594 MRR and a $7.1k ARR, an apparent 8000% jump from the prior month. But that number is mostly a projection, not real revenue — actual money collected totaled just $99.
Trials are not converting: after 7 days, charges either fail due to insufficient card balance or customers cancel right before billing. Notably, most signups picked the most expensive plan (roughly $1k/year), and that exact plan is the one that isn't renewing.
Key points
- Removed entirely; now requires a card and 7-day trial to use the product
- Signup quality improved, but collected was only $99
- 's $7.1k ARR is mostly unrealized, not actual income
- Most trial charges fail or get cancelled right before billing
- Buyers mostly picked the priciest (~$1k/year), which had the lowest renewal rate