free tier converts at 0.4% and the ones who pay churn by month two Free to Paid

0.4% free-to-paid with no sales touch is roughly normal, honestly. The 2-5% people quote usually comes with a real activation flow and an email sequence behind it. The conversion number alone isn't the emergency.

Five of eight churning in 60 days is the emergency. Email those five. Not a survey — an actual email from you with one question: "what were you trying to get done the week you signed up?" You'll get two or three replies and they'll tell you more than the whole funnel dashboard.

Don't touch pricing yet. Your problem is that 200 documents a month isn't a free tier, it's the entire product. Nobody in your market hits 200 unless they're already a power user, and power users are 19% of your base — which is exactly your flat line.

That flattening is your real signal and it's good news. You have a genuine product for a specific person. You just gave it to them for free.

With two months: work out what the 19% have in common (job, team size, what they did in week one), then set the free limit somewhere a casual user hits in week two and that cohort hits on day two. Leave $19 alone.

Look at what happens between signup and first document. My guess is there's a cliff there that's making the top of your funnel look bigger than it is. 1,900 signups is a meaningless number — how many produced one document? If it's 400, your real conversion is 2% and your problem is activation, not price.

Activation rate first, pricing second. Always that order.

Two months buys you one experiment, so pick the one you can read fastest. A free-tier limit change gives you signal in about 14 days. An onboarding rewrite takes six weeks to build and another six to read. A pricing change takes a quarter because of cohort lag. That ordering makes the decision for you.

$19 is too cheap for someone who uses this daily and too expensive for someone doing six documents a month. There's no price that serves both. Pick the daily user, charge $39, let the six-document people go. They were never revenue, they were support tickets and storage cost.

at 3 paying customers you don't have a churn problem, you have a 3 customers problem. that cohort chart is noise until you've got 40 of them. go get more users, the curve will say something real later