AJIT KRISHNA
Published on

The Generous Paywall Experiment

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The standard SaaS playbook for paywalls is clear.

Offer a taste. Create desire. Gate the good stuff. Optimize conversion.

The shorter the free trial, the faster you learn if someone will pay. The tighter the gate, the higher the conversion rate. The more friction at the paywall, the more urgency to convert.

This works for most products. It probably won't work for mine.

The Trust Problem with Early Paywalls

SAM is an AI that helps people work through relationship stuff. Like a friend with good instincts who really listens. Users share things they're embarrassed about. Conflicts with partners. Communication failures. Patterns they've never spoken aloud.

Asking for money before delivering value feels extractive in this context.

"You've been sharing vulnerable things with me. Now pay up."

Even if that's not the intention, it's how it lands. The paywall interrupts the relationship at the moment the user is most exposed.

Standard paywalls assume the user already knows what the product does. They've read the marketing. They've seen the features. The trial is confirmation, not discovery.

For SAM, users don't know if it's useful until they've actually experienced it being useful. Reading about having a friend who listens well is different from actually feeling heard. The value is the experience, not the feature set.

Gating that experience early means users hit the paywall before they know what they're paying for.

What Generous Means in Practice

Here's the approach I'm planning:

Value first, payment later. The paywall won't trigger until SAM has actually helped. Not "interacted," not "engaged," but helped. A moment where something clicked. A message draft that made a difference. Feeling genuinely heard.

Transparent framing. When the paywall does come, it will look like this:

"We've been talking for a while now, and I hope our conversations have been helpful. Here's what we've worked on together: [brief recap]. To keep building on this, SAM is $X/month. Want to continue?"

No urgency. No scarcity. A genuine question.

Acceptable outcomes include walking away. If a user gets real value from SAM and then leaves without paying, that's fine. They were helped. The cost of helping them was low. They might refer others. They might come back later.

Better for users to leave having been helped than stay feeling squeezed.

Three Outcomes That All Work

When I think about paywall interactions, three scenarios are acceptable:

Users convert. Great. They experienced value, they want more, they're willing to pay. Clean exchange.

Users get value and leave without paying. Also fine. The unit economics of AI mean each conversation costs cents, not dollars. A user who got helped and didn't pay cost me maybe $2. That's a marketing expense, not a loss.

Users refer others. Even without converting themselves, users who had a positive experience might mention SAM to friends in similar situations. Word-of-mouth in sensitive categories comes from genuine trust, not from campaigns.

The only bad outcome is users who feel manipulated. They don't convert. They don't refer. They actively warn others. Standard paywall optimization creates this outcome when applied to trust-first products.

Why This Is Possible

Being generous with paywalls requires specific conditions.

Low marginal cost. AI conversations cost pennies. I can afford to give away dozens of conversations before monetizing because each one doesn't cost much.

No investor pressure. A VC-backed company would face pressure to capture value earlier, optimize conversion rates, reduce the free tier. As a solo founder, I can make the tradeoff differently.

Long-term over short-term. Users who experience genuine value before paying should have higher lifetime value. They stay longer. They churn less. They refer more. The patience pays off in the long run.

Trust as the product. If the product is built on trust, monetization that undermines trust undermines the product. Generous monetization is consistent with the core value proposition.

Not every company can do this. But if you can, the question is whether you should.

What I'm Still Figuring Out

I don't have this solved. Several open questions:

Where exactly should the paywall trigger? "After value is delivered" is clear in principle, fuzzy in practice. How many moments of clarity? How deep? Too early and users haven't experienced enough. Too late and I'm giving away the whole product.

How do I detect value moments? SAM can observe patterns that suggest value: the conversation deepened, the user expressed relief, they came back and referenced previous insights. But I can't read the content, so I'm relying on proxies.

What if users expect everything free? The generous model might attract users who will never pay. At some point, the unit economics have to work. I'm betting that users who genuinely value the product will pay, but that's a bet.

Does this scale? Being generous is easier when you're small. Every interaction is cheap. But if SAM grows, will the free tier become unsustainable? I'll need to adjust, but I'd rather adjust a working model than start with an extractive one.

The Underlying Bet

Standard monetization optimizes for conversion rate. Generous monetization optimizes for something else: trust retention.

The bet is that users who feel respected, who weren't squeezed, who experienced real value before being asked for money, will:

  • Convert at a lower rate but stay longer
  • Have higher lifetime value
  • Refer more genuinely
  • Churn less
  • Tolerate price increases
  • Forgive product mistakes

The math might work out the same or better. Higher LTV compensates for lower conversion.

But even if it doesn't, I'd rather run a product that treated users well than one that extracted efficiently.

The Counter-Argument

I should be honest: this approach might be wrong.

Maybe users don't care about feeling respected during monetization. Maybe they convert based on value perceived, not value experienced. Maybe generous paywalls just leave money on the table.

The standard playbook exists because it works. Millions of A/B tests have optimized toward it. I'm betting against a lot of accumulated wisdom.

But that wisdom was accumulated in different contexts. SaaS products. E-commerce. Entertainment apps. Not sensitive-category trust products.

The principles might not transfer.

The Experiment

I'm framing this as an experiment, not a philosophy.

The hypothesis: in trust-first categories, generous paywalls outperform optimized paywalls on long-term revenue and user quality.

The test: run the generous model, measure LTV, churn, referral rates, and compare to what aggressive optimization might have achieved.

The willingness to be wrong: if the data shows generous doesn't work, I'll adjust. But I'm starting from trust rather than starting from extraction and trying to add trust later.

Easier to tighten a generous paywall than to loosen an extractive one.

SAM isn't live yet. This is pre-launch thinking about how I want to approach monetization. The experiment starts when users do.

I'm curious to find out what happens.

Want to share a thought or ask something?

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