Free tier or free trial?

Trial: time-limited. Tier: forever-limited. Different motion.

Track Free CAC carefully \u2014 easier to ignore than paid.

Activation definition?

Each product different \u2014 typically 'first value' moment.

Yes \u2014 automated triggers + dedicated reps for high-value.

Mixpanel, Amplitude, Pendo, Heap.

PLG Conversion Calculator

PLG funnel 2027: 20% visitor→signup, 40% signup→activation, 5-10% activation→paid. Total conversion 0.4-2% visitor→paid.

Monthly Visitors

Visitor → Signup %

Signup → Activation %

Activation → Paid %

Average Paid User Revenue/Month ($)

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Activated

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Conversion

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Annual Revenue

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Product-Led Growth (PLG) funnels rely on free tier or trial signups converting to paid. Three critical conversion points: visitor → signup, signup → activation, activation → paid. Benchmark each separately; small improvements compound dramatically.

PLG Funnel Benchmarks

Visitor → Signup: 10-25% for compelling product, 5-10% for typical. Signup → Activation: 30-60% (depends on Aha moment design). Activation → Paid: 5-15% in 12 months. Total visitor-to-paid: 0.4-3% range typical. Top tier (Slack, Calendly): 2-5%.

Optimization Levers

Visitor → Signup: better positioning, reduce form fields, value props above fold. Signup → Activation: improve onboarding, faster Aha moment. Activation → Paid: better value gates, upgrade triggers, sales-assisted reach-out, premium feature exposure.

Time-Based Conversion

Day 1 conversion: 5%. Week 1: 15%. Month 1: 30%. Month 6: 60%. Month 12: 80%+ of eventual conversions. Track conversion velocity — fast convert is highly valuable; slow convert may need nurturing or churn early.

Last updated May 2026. Sources: OpenView PLG Benchmarks.