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I've tested both models extensively, and traditional freemium absolutely bombs with Indian customers. They sign up, extract maximum value from free tier, then create new accounts rather than upgrading. What worked for us was a 'reverse freemium' - full access for 30 days that downgrades to limited functionality. Conversion rates jumped 3x with this approach because it triggers loss aversion. As for cost drivers, cloud computing in India is actually MORE expensive relative to what customers will pay, so architecture matters enormously.

I strongly disagree with this India-specific approach nonsense. Unit economics are unit economics regardless of geography. I've launched SaaS products in both markets, and while pricing differs, the fundamental models don't. CLV calculation remains the same: average revenue per account divided by churn rate. The only real difference is that in India, you need to plan for lower price points balanced by lower development costs. The myths about Indian customers being uniquely difficult or price-sensitive at scale are mostly perpetuated by founders who failed to deliver sufficient value.

saas pricing in india is tricky. prosumers want enterprise-level ai for free 😭

freemium works best when your free users somehow never leave

unit economics for ai saas? just charge more and pray churn stays low 😆