Now, this is not a video about business model.
Rather, in this video, we'll talk about a customer acquisition strategy that was used by companies
like Zoom Loom or Slack.
And the name of this unique customer acquisition strategy is free enterprise model.
And this free tier price is made up of two word free plus enterprise.
So in free enterprise model, you will try to give the free version of your product if the people sign
up using their professional email ID.
And once you identify the opportunity where multiple people are using your product from the same company,
in that case, you will assign an account executive or a salesperson who will convert all of these free
account into the enterprise or paid account.
And this strategy was used by companies like Slack, Zoom or Loom.
If you look at the sales funnel of these companies, their main aim was to give these product for free
to all the people who are signing up using their professional account.
And once they find enough people under the same organization, in that case, they use their inside
sales team and the field sales team so that they can convert those free account into SMBs customer or
enterprise customer.
So let's understand, if you work for a software company, how you can use a team collaboration as a
powerful customer acquisition strategy.
So if you have used product like Loom or Scribe Hub, you may have seen this prompt.
If you sign up in these product using your professional email ID that is given by your company.
In that case, they will give you a small prompt saying that we found a workspace that will have all
other team members of your company.
Why don't you join the same workspace instead of creating a new workspace?
So you can see that 22 members are already part of this workspace and you will have a lot more benefit
if you join the same workspace.
So once the company identifies that there are a lot more people that are there in this workspace, why
don't we send an account executive or a sales guy to convert these free account into an enterprise account
so that you can charge the company instead of taking the individual amount from these free customer.
So once they convert these bunch of free account into enterprise account, now every month they can
simply generate an invoice directly to the company.
And the company is paying for all of these individual people in the same workspace.
And that was the unique strategy that was used by companies like Zoom Loom or Slack, where they use
collaboration as the customer acquisition strategy.
So if you are signing up into any of these product, they will try to add you into the common workspace.
So that they can charge the company every single month instead of taking a small amount from you independently.
I mean, this is not a business model video, but I've still shared this strategy with you so that you
can understand how exactly you can acquire a customer without spending a lot more money.