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                    Edition #503, 6-Feb-2026
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                   <p style="margin:0;margin-bottom:16px">
                    AI is reshaping SaaS in a lot of ways, but one thing hasn’t changed: free-to-paid conversion is still one of the highest-leverage growth levers you have.
                   </p>
                   <p style="margin:0;margin-bottom:16px">
                    This week’s big read is our new Conversion Report, based on data from 200 B2B software products. It’s part 1 of 2, and I’d love to hear what stands out to you.
                   </p>
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                     Until next time,
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                    <a class="" rel="noopener" style="text-decoration: underline; color: #666e89;" target="_blank">
                     <strong>
                      Nick Franklin
                     </strong>
                    </a>
                    <br/>
                    Founder &amp; CEO
                   </p>
                   <p style="margin:0">
                    P.S. Don’t forget. On Feb 17, we’re hosting a live webinar with Churnkey on churn and retention in AI SaaS, with benchmarks, insights, and tactics. Register here:
                    <a style="text-decoration: underline; color: #666e89;">
                     https://luma.com/w6q90zfi
                    </a>
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                    This week in SaaS
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                    The Conversion Report
                   </span>
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                   <p style="margin:0;margin-bottom:16px">
                    New data from 200 B2B software products shows free trials now dominate as the primary self-serve entry point (57%), with a median free-to-paid conversion rate of 8%. The biggest outlier: trials that require a credit card convert at 30%, more than 5x higher than those that don’t.
                   </p>
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                    <em>
                     "The median free-to-paid conversion rate across all products was 8%. But very few products actually have an 8% conversion rate."
                    </em>
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                      Learn more
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                    The 2026 SaaS Crash: It’s Not What You Think
                   </span>
                  </h1>
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                   <p style="margin:0;margin-bottom:16px">
                    The SaaS downturn isn’t an AI apocalypse, it’s the market finally facing a growth slowdown that started in 2021. Lemkin argues AI is simply redirecting budgets away from seat-based expansion. The question for founders now: are you capturing AI spend, or funding it?
                   </p>
                   <p style="margin:0">
                    <em>
                     "Stop thinking about whether AI will replace you. Start thinking about whether you’re getting any of the AI budget."
                    </em>
                   </p>
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                  <h1 style="margin:0;color:#091121;direction:ltr;font-family:'Open Sans','Helvetica Neue',Helvetica,Arial,sans-serif;font-size:15px;font-weight:700;letter-spacing:normal;line-height:1.2;text-align:left;margin-top:0;margin-bottom:0;mso-line-height-alt:18px">
                   <span class="tinyMce-placeholder" style="word-break: break-word;">
                    Founder-Led Prospecting
                   </span>
                  </h1>
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                   <p style="margin:0;margin-bottom:16px">
                    Founders really have two outbound lanes: automation or ABM (personalized prospecting). The question isn’t whether outbound should be automated, it’s whether it’s worth doing by hand. Gassée offers a simple heuristic: high ACV + few targets = personalization, low ACV + massive market = automation.
                   </p>
                   <p style="margin:0">
                    <em>
                     "ABM is perfect when each introductory meeting booked is worth a lot."
                    </em>
                   </p>
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                      Read on
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                    "GTM Spends Faster Than It Learns"
                   </span>
                  </h1>
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                   <p style="margin:0;margin-bottom:16px">
                    Mark Stouse argues that CFOs and CEOs are losing trust in legacy B2B GTM because spend keeps rising without improving predictability. Despite more tools and activity, efficiency and forecast accuracy continue to erode.
                   </p>
                   <p style="margin:0">
                    <em>
                     "When a system relies on measurements it doesn’t fully trust to justify spend it can’t clearly defend, it is no longer managing performance. It is managing permission"
                    </em>
                   </p>
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                    Chart of the week
                   </span>
                  </h1>
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                   <p style="margin:0">
                    For every 1,000 website visitors, this chart maps how different free models translate into free signups and eventual paying customers.
                   </p>
                  </div>
                 </td>
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                    Industry advice we loved this week
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                      <td style="display: inline-block; font-size: 30px; font-weight: bold; margin-right: 10px;">
                       1
                      </td>
                      <td style="font-size: 15px;">
                       <b>
                        <a style="color: inherit; text-decoration: underline;" target="_blank">
                         Functional features get all the attention,
                        </a>
                       </b>
                       but Ulrik Lehrskov-Schmidt reminds us service and commercial features are often what actually unblock buying.
                      </td>
                     </tr>
                     <tr style="text-align: left; color: #091121;">
                      <td style="display: inline-block; font-size: 30px; font-weight: bold; margin-right: 10px;">
                       2
                      </td>
                      <td style="font-size: 15px;">
                       <b>
                        <a style="color: inherit; text-decoration: underline;" target="_blank">
                         Because intimate IRL events are all the rage right now:
                        </a>
                       </b>
                       Sheena’s “3 Ps” framework — people, place, programming — is such a helpful gut-check for differentiation.
                      </td>
                     </tr>
                     <tr style="text-align: left; color: #091121;">
                      <td style="display: inline-block; font-size: 30px; font-weight: bold; margin-right: 10px;">
                       3
                      </td>
                      <td style="font-size: 15px;">
                       <b>
                        <a style="color: inherit; text-decoration: underline;" target="_blank">
                         Here's a smart follow-up trick for building rapport with busy execs:
                        </a>
                       </b>
                       say something honest or funny and taping into people's passions.
                      </td>
                     </tr>
                    </tbody>
                   </table>
                  </div>
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