Free trials + PAYG show the highest conversion rate for customers and Marketplace. Yet most sellers still don't offer them…

Here's how and why use free trials to accelerate marketplace growth:

Amazon Web Services (AWS)'s latest customer analysis shows a simple truth: marketplace buyers now expect to try before they buy.

The most successful marketplace sellers are turning this shift into a competitive advantage.

The Proven Three-Step Framework:

1️⃣ Start with Free Trials

• Remove signup friction

• Make trials instantly available

• Focus on core product value

2️⃣ Add Pay-As-You-Go Options (if available)

• Enable gradual usage expansion

• Let customers control spending

• Build trust through transparency

3️⃣ Scale to Enterprise Contracts

• Convert proven value to commitments

• Leverage usage data in negotiations

• Maintain flexibility in contract terms

Why This Works:

AWS data shows that conversion from Free Trial to PAYG is 3X higher than to Contract. The reason is simple: it matches how modern tech buyers actually want to purchase software.

As Salvador Lopez Beneyto, Sr. Product Manager, highlighted at AWS re:Invent: "Today, majority of decision makers are millennials who ideally don't want to interact with a salesperson through the funnel."

He emphasized that this evolution - from free trial to pay-as-you-go to contract - shows "the highest conversion rate for customers and Marketplace."

Important note: Even without pay-as-you-go capabilities, free trials remain valuable in driving conversion.

💡 The Critical Question:

With AWS confirming "94% of customers have told us that free trials are important" and a quarter essentially disqualifying products without trials, can you afford to ignore this shift in buying behavior?