Does the freemium model work for agencies?

Question

Is offering something for free a powerful enough incentive for someone to try your service? 🤔

There are tons of companies that I would love to work with, and I've been thinking about offering to create one video for them for free.

But at the same time, these companies are very well funded, so I'm not sure if pricing matters all that much to them.

Just a bit of context, I run a video agency. www.videodeck.co

Let me know what you think. 🙌

Heleana Grace · Accepted Answer

@fabian_maume Awesome insight, thanks!

You are right, for us it might be a bit more expansive to do this as we are an agency. 
But I'm thinking that I could just think of it as acquisition cost.

What I'm worried about the most is not to be perceived as a cheap - bad service or funded companies not really carrying about the price. Especially since we are pretty affordable for video production.

Qudsia Ali · Answer

Yes, free services are a great way to generate more leads, and then you can work around making them convert into the business.

Fabian Maume · Answer

Yes, free service can be a good way to get leads but it is hard to pull off. For Tetriz.io I'm offering growth audits for free. I'm able to do it as I have automation scripts to do most of the work for me. So if you have a microservice, which doesn't cost you too much to deliver, you can offer it for free. You can also consider productizing this service to get even more leads. It is what I'm doing with QApop

Roberto Morais · Answer

I have a successful agency and every time we tried freemium or money back guarantee it backfired. Sure, we got a few new clients but most of them were not great customers and we didn't felt like it removed or even improved by much the barrier of entry. The thing that worked for us was to keep adjusting our offer until we got something that really resonate with our customers.

Varun Kodnani · Answer

@heleana So personally I have been trying to get in touch with video creation agencies but I couldn’t trust any of them to do a good job. I am your customer if you are open to creating a free video for Flowace (the startup I’ve co-founded), which will definitely help me trust you better to give you paid orders in the future.

Does the freemium model work for agencies?

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