Which is fair enough, but the jump often is insane - free gives you X, Y, Z and you can do basic collaboration, but go from 3 to 4 or otherwise pass some arbitrary limit and you go from $free/month to $300/mo (as now EVERYONE needs the $20/mo plan, etc). It's often too big a gap to cross.
Better are the "pay for power users, the free plan can watch them do their thing" as that lets you slide in and slowly increase spend. (It's much easier to get corporate approval for $20/mo and then slowly increase that than to try to get approval for $300/mo out of the gate).