Limit free offerings to avoid cannibalizing your paid customers. Expect your free-to-paid conversion rate to be less than 5%.
Promote both free and paid offerings, rather than focus just on acquiring paid users.
Create an incentive for free users to refer their friends to your service or product.
Clearly distinguish between free and paid plans, so users can see value in paying for more.
Create a natural progression from free-to-paid features, such as the option to buy extra storage space on a cloud service once a user runs out of free space.
