Revenue model for a start up providing free services?
Looking answers for revenue model of a start up:
A start up engaged in service industry wants to provide services free of cost to its targets till the time it does not get sufficient response, so at the time when it is free what shall be the way to get revenue enough to sustain and pay for employees?
SCORE - or a like minded deep pocket individual sharing passion toward community or this service venue.
I have no idea what you are talking about. You want to provide a service that is free. As in you do not collect any money to perform whatever service you provide in the "service" industry and then want to know how you can pay employees in the meantime? Are you financially independent at this time? Do you have friends or family that are? That is the only way I am aware of that you can pay people to help you give something for free away. Maybe I am confused with your question.
Free services aren't necessarily free, but usually subsidized in some way. Many other free products are teasers / trials that are targeting users to become reliant until some point when they need the features of the "paid" service.
Giving away your service for free is a great way to generate "social" traffic if you can hit the niche. Facebook and Blogging alone will not gather you the userbase you need. It will require marketing, not necessarily expensive, but it will have to be smart marketing.
Think of a business that aligns with yours and structure a deal where you can make a commission for cross-sales. Also work with that company to drive their customers to your services.
Ad revenues (for showing banners, etc) on your site probably won't generate enough to keep the lights on, but turn it around and consider where you can get some exposure at some fixed budget that will drive business to your site.
Maybe your business model isn't free, but subsidy based. In other words, consider charging a very small amount of money to offer premium / premium plus services to your userbase.
A really great way to look at this would be to consider "who" needs your services for free. Give away the portion of your service that will be used most commonly, but charge a small amount for access to the service that people will use infrequently but is essential.
A great way to look at this would be Google Adwords. They effectively give away impressions, but charge for the "clicks". Get it?
It's just looking @ your business model in a different way. If you need some brainstorming help, look me up. This is what I do for many people and businesses. I'm more than happy to help you hash something out (like a business model) gratis if you're patient with my delayed responses..
Cheers and Good Luck.
Almost the only way you can provide free services over a long period (without going bankrupt) is to rely on grant and bid funding. As someone who has successfully brought several million pounds through grant funding I can assure you that also is not getting any easier. Nor do i or my organisation provide that service for free. My advice to all enterprises inclduign chairities is to diversify your income streams and implement a strategy to move away from grant funding. Which inevitably means charging for services. Sorry.
I think your "free" service must, at most, be a "teaser" which leads up to a paid engagement - in which case the time and effort is really a marketing cost.
The world always wants something for nothing - as long as you provide it, you earn little more than goodwill.
Further, each "free" client will refer you to many more who'll want it free - you'll never be referred to anyone who'll pay as they'll be well aware that you're giving it away for free.
I think you need to re-look at your offering and model in its entirety ....
When you work 22 hours a day proving yourself and people start wasting your time, is when you realize you will need to charge for your services and fire most of your current free clients. Welcome to being an Entrepreneur.
Difficult one, especially with so little information
Is there a change of selling advertising (which is the way most free services make money)?
Why are they so invested in their service being free?