More Demand, More Free Supply? — A Case Study

The usual logic goes like this: as more people use a free service, resources get stretched thinner, and limits have to tighten. But this test showed the opposite might be true — under the right conditions, a larger user base can actually help sustain or even expand what’s offered for free.

Over the past day, I ran a test on image-upscaling.net allowing users to upscale up to 40 images per day for free. The goal was to see whether the project could be sustained primarily through donations, and whether offering a high free quota would lead to an increase in donations.

Performance-wise, the server handled the increased usage without any issues. However, financially, the model didn’t hold up. Running the service costs around €12 per day on average. With roughly 3,000 users per day, the average daily income from donations is only about €4 and was no different during the test. This is far from enough to cover the costs.

Some users do choose to pay when they reach the free limit — on average, about 1 in 200 users who hit the cap purchase additional quota for €3–5. But because conversions are relatively rare, the number of users hitting the limit needs to be high enough to generate even one or two paid upgrades per day.

The test showed that offering 40 free images per day isn’t financially viable under the current model. That said, since the infrastructure handled the spike in usage well, attracting more users could help improve sustainability. With a larger user base, the number of people converting to paid users might become high enough to support a more generous free tier.