Password service Dashlane announced restrictions for free account users this week that limit passwords to 25. Starting November 7, 2023, all Dashlane Free users are restricted to 25 passwords instead of unlimited passwords, the previous limit.
Those with more than 25 passwords keep access to them but they face the same restrictions in regards to adding new passwords. In short: once the 25 passwords limit is reached or crossed, new passwords can only be added if enough old passwords are deleted. Dashlane will also limit support access to paying customers.
The company explains that it made the decision to “focus resources on providing the highest level of service, support, and security”. This is marketing speak.
Dashlane Free remains a product, which means that it requires development resources. Limiting passwords won’t change that. This leaves pushing Free users to paid plans by artificially worsening the experience for many of them as a plausible reason.
Restricting passwords is not right
Dashlane Free users could and can store as many passwords as they want using the password manager. This won’t change until November 7, 2023.
The new artificial limit puts many Free users in a precarious position. Those with more than 25 stored passwords can’t continue using the service, as new passwords need to be stored eventually. They have just a few options:
- Delete passwords regularly to stay under the 25 passwords limit.
- Upgrade to a paid account and give in to Dashlane’s pressuring.
- Migrate to another password manager.
The first option is only feasible for users who don’t have many passwords in Dashlane. Upgrading is the quickest option to deal with the issue, but it also means paying for the password manager.
Migration is another option. Dashlane supports exporting all passwords to CSV files, which most password managers can import.
Password storage is a core feature of every password manager. Restricting the feature limits the password manager significantly. With the artificial limit in place, what is keeping Dashlane from introducing another restriction in the future that limits password storage even further or ends Dashlane Free altogether?
A short term boost to subscriptions
Dashlane will likely notice a short term boost to subscriptions. As users hit the new limit in November, part of the affected group will sign-up for a paid account, especially since a discount is offered.
Others will migrate to a different password manager. Plenty are also free and most do not limit password storage.
My recommendation is Bitwarden. It is open source, does not restrict passwords and is considered one of the best password managers out there. If you don’t need cloud syncing, you could also check out KeePass, another excellent password manager.
Dashlane sign-ups will slow down after the change lands. Users who look for a password manager may not pick the one that is limiting a core feature of a password manager. Less Free signups will also lead to less free to paid upgrades, as fewer users may choose that path. This will impact revenue.
Closing Words
Dashlane could have selected a different path. It could make old user accounts grandfathered accounts. This would have allowed existing free users to continue using the password service as well, at least in regards to passwords storage. This, on the other hand, would not have pushed sales as much, as only new users would be subject to the passwords limit.
It remains to be seen if Dashlane is going to reverse the limit eventually. This is not totally out of the question.