Grandfathering

A preferential measure that allows existing users to continue using a previous pricing plan or terms. When a service raises prices or changes conditions, users who subscribed before the change can keep using the service under the original terms. It is used to maintain customer loyalty.

How Grandfathering Works and Real-World Examples

Grandfathering is a practice where existing users are kept on their old terms when a service revises its pricing or conditions. The term originates from the American "Grandfather Clause," used in the sense of protecting acquired rights. In the SaaS industry, a typical case is keeping existing subscribers at their original monthly rate when pricing plans are revised.

A concrete example is when Notion introduced block limits on its free plan in 2024 but did not apply the restriction to existing free users. Evernote also has a track record of grandfathering existing subscribers during past pricing changes. While grandfathering is effective at preventing existing user churn, it also carries the risk of creating a sense of unfairness between existing and new users.

User Strategies for Maximizing Grandfathering Benefits

To make the most of grandfathering, there are several important considerations. First, the old terms typically apply only as long as you maintain your current subscription. If you cancel and re-subscribe, the new pricing structure generally applies. Therefore, it's important not to casually cancel a service where grandfathering is in effect.

Plan changes also require caution. Upgrading or downgrading within the same service may cause you to lose your grandfathered terms. Before changing plans, check with support to confirm the grandfathering conditions. Over the long term, continuing to use a service at the old rate can result in savings of several thousand to tens of thousands of yen per year - the value of this "acquired right" is far from trivial.

Was this helpful?