Everybody loves a freebie. That’s probably why so many start-ups and even well-known brands often use free trials to draw customers’ attention and introduce them to new products. Yet free trials often fail to convert customers to paying ones. Even when they do convert, customers obtained using free trials can be significantly less valuable than other customers. The problem, our recent research suggests, is that too many free trial campaigns aim to bring new customers to a brand’s products rather than enticing existing customers to spend more. If this is true, our research can help marketers find the sweet spot for free trials.