TLDR: WATCH THE VIDEO (click above)
Imagine yourself on “The Price is Right," where the right guess can win you big prizes.
Do you make a real guess and risk being over, or go with $1?? You may go with $1.
Now picture a B2B free trial model. Should you ask people to sign up for your product’s real price, or go with $1? Shopify went with $1.
Sold? Come on down!!!
This is Shopify’s free trial model in a nutshell: a tight three-day window followed by a $1 offer. Today we explore the science and strategy behind this approach, revealing how it converts curiosity into commitment – and where it could use tweaking.
The power of tight deadlines
Why would Shopify go with a 3 day trial — vs. the more common 30 day trial? It seems they know something about human behavior. Ayelet Gneezy’s research found that giving people a shorter time to do something (i.e. get a cancer screening) works just as well as giving them a longer time with extra rewards. By using a shorter deadline, Shopify helps the potential user prioritize the decision on if they should commit or not commit –as opposed to, say, a 14-30 day trial, which would enable them to postpone the decision until tomorrow… and tomorrow… and never.
The $1 commitment device
Then comes the wacky $1/month offer for 3 months Why not extend the trial for 3 months? Does Shopify really need your $3 that bad? Nope. It's not about the amount, but the action it requires: entering your credit card details. This alone makes you pause and consider your commitment. Casually curious? This is where you bail. But if you’re in, you’re in; you’ve invested in Shopify psychologically, increasing your likelihood of becoming an engaged user. (Watch the teardown to find out what happened when I tried charging friends $1 to attend my dinner parties.)
Where to go from here?
Shopify's “Price is Right” free trial model excels at creating urgency and capturing genuine interest. But picking the right plan can be confusing. It's not always clear how different plans compare, especially when you're trying to match fees and features to the size of your business. Thinking bigger, Shopify could probably convert more people to paid just by more clearly showing them the concrete benefits of using their platform.
3 takeaways from the teardown:
⌛️ Short deadlines can work as well or better than long ones
💳 A nominal fee, even as low as $1, can increase commitment
🛍️ Clearly illustrating your product’s potential benefits can drive conversions
What are your thoughts on Shopify's model? Have you come across or tested a novel approach to product trials? Share your insights, and let's continue the conversation next week with another teardown.
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The price is right: Shopify's $1 gamble and the science of converting to paid