In order to survive the economic recession, we’re seen many businesses offer products and services where clients can pay whatever they want. While previously this has only applied to restaurants and hotels, now an ad agency is getting in on the pay what you want formula and it’s finding that business is better than ever.
Agency Nil is an advertising agency with no set prices for freelance branding, media and advertising services. They do the work, and then their clients can pay them whatever they want. In order to get started, prospective clients are asked to submit a work request form outlining the scope of the project. Agency Nil will then assign an advertising professional to get the job done, and once it’s completed by the requested deadline, the client can look over the work and set their price.
Of course, clients do have the option to pay nothing (except for the previously agreed upon fees for travel, production, and research tools); however, according to Agency Nil executives, if that happens, they’re not likely to take your business again. They do claim, however, that this has never happened, and that business is booming because this fee structure better caters to the supply and demand format dictated by the financial crisis. I would be surprised if they’re making more money off of their clients, who feel a sense of generosity in knowing that the work was done well, even when Agency Nil didn’t know what they were working for monetarily.
What do you think about these pay what you want businesses from a business perspective? Can they turn a profit, and is the recession setting us onto a trend that we should have discovered a long time ago?
Via: Springwise
