[monkeyspaw]

I guess I would answer by saying, it depends, and possibly.

If 1 user needed 2501 emails and your plan only offered 2500, then chances are they would be at least a little turned off.

Pricing is really important. If a 0-3000 person list at MailChimp was $20 per month, but Constant Contact tier required (2000-10000) $50 per month, the user could say something like "MailChimp solves my problem for $20, CC is $50. I can't tell the difference so I'll go with the cheaper one."

Again, though -- I doubt there is much focus on targeting competitors' users, but are competing against the user not knowing of their existence.

MailChimp's free tier allows up to 2k list members. They know most people with lists that small won't pay for a solution. As their list grows, MailChimp can ride their success into a paid tier.

[notastartup]

thank you again for the detailed explanation. I think I have better understanding than before.