That's a good point, but it's a startup point, right? At scale, the percentage of the addressable market that is sufficiently served by your free option does matter, doesn't it?
I get that this is a startup article, and my thought reading this article was "well, that's conversion math for you." But you're making a broader point.
You can actually induce your own pressure on the free users by changing your product so that a very valuable piece is now in the paid section.
Sometimes you can create your own demand. Have a look at avvo.com. They do it well.
I get that this is a startup article, and my thought reading this article was "well, that's conversion math for you." But you're making a broader point.