Cursor

PLG

AI Tools

Last Updated: 20/04/2025

Cursor uses a hybrid pricing model with freemium access and a 2-week Pro trial to showcase its AI coding assistant, driving upgrades through flat-fee and per-user plans for individuals and teams.

  • Category
    AI Code Editor
  • Business Model
    Product-Led Growth (PLG)
  • Target Market
    Individual developers, engineering teams, and startups

    Core Pricing Structure

  • Pricing Model: Hybrid — flat-fee for individuals, per-user pricing for teams

  • Primary Value Metrics: Number of users and AI-powered code interactions

  • Freemium: Yes, with limited access to AI features

  • Discount Strategy: Offers annual subscription discounts and a 2-week Pro trial for free users

    Monetization Strategy

  • Core AI features available in Pro plans; free users receive a 2-week Pro trial to experience full value

  • Monetization Approach: AI is embedded in both individual and team plans, monetized through usage-based differentiation across tiers

  • Future Potential: Likely to expand AI capabilities for enterprise workflows, integrations, or debugging assistants as premium upgrades

  • Cursor leverages its Pro trial and freemium model to showcase the full AI value early, encouraging conversion through high-impact coding enhancements.

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