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We require a credit card to sign-up and we bill you at signup.
Our reasons. It works. We only get serious users signed up, not thousands of people who might never login to the system. And given our business situation, where we license the software per user, this model works for us.
Many consultants and other pundits don't understand the real cost dynamics of the businesses involved. The simple numbers might be:
$5 hard cost for a free trial
5% of the people who sign up without a credit card ever login
half of those that login sign up.
Cost per customer this way: WAY TOO HIGH.
So we insist on a credit card and payment to get started. Sure, it would be nice if we had a different model. But we don't.