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by adrr
2398 days ago
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For physical products, it’s doesn’t make sense. You get chargebacks and high churn. You also get people who cheat the system with throw away emails. The business has to focus on catching these people and making it hard to cancel. These are things that don’t actually drive value for both the company and customer. Best decision we made at a subscription CPG startup was cut our 1st month free promo and instead focus on creating a brand through marketing and high quality products. This allowed the company to successfully exit after only 5 years. Companies that take the approach free trial approach burn their customers and get nailed by the government. A good example is a diapers subscription company that got nailed by the FTC ultimately leading to down round and giving up their subscription bundle. |
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