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Productized Consulting: A Unique Way to Achieve Business Success

Productized consulting is one of the more important productized services that is gaining in popularity. Productizing consulting means packaging your expertise into a fixed-scope and a publicly priced thing which people can buy.

Productized Consulting: A Unique Way to Achieve Business Success

Productized consulting has been around for many years, but it's only now getting the attention it deserves. This is because productizing consulting services offer a number of benefits to both consultants and clients such as

  • Clients get higher quality productized products and are ensured with timely delivery than if they were to work with a traditional retainer model.
  • Consultants can charge less for productized services than they would for off projects which makes them more competitive in an increasingly crowded marketplace.

Furthermore, productized consulting services can be used in a number of business models such as freelance consultants working on hourly, full-time, and part-time basis and also for established and growing firms looking to expand their offerings through diversification.

What is Productized Consulting?

Productized consulting is one of the important productized services that is gaining in popularity. Productizing consulting means packaging your expertise into a fixed-scope and a publicly priced product which people can buy.

In most cases it's selling a high value service with low overheads so you earn more income and have fewer logistical headaches.

Productizing consulting services are especially valuable to small teams because of the guiding nature of telling you what needs to be done rather than a stream of random feedback you don’t necessarily know how to tackle.

Why is it important?

  • Productized Consulting allows you to offer high-level services without all of the risks traditionally associated with consulting engagements, such as upfront payment and hourly billing rates.
  • Productized Consulting allows your team to focus on what matters most: delivering value for your customers while removing the distractions that come with managing projects.
  • Focusing just on productized consulting can help you increase your capacity and scale up quickly. This will allow you to spend more time with clients, which enables you to develop stronger relationships.
  • It can also help you to avoid the productized product development process, which is a huge time failure.

When can you utilize it?

  • Productized Consulting can be utilized when the company is young, when the productized product team is small or a combination of both.
  • As your productized product company matures, you will find it necessary to long-term contracts and retainers rather than just nice-to-have features like in productizing consulting.
  • The longer you work with clients, the more likely they are to productize product your expertise into productized product or productized services so you can maximize revenue and minimize operating costs.

What are the benefits of Productizing Consulting?

Productizing consulting is worth it when you productize your service into a productized product. There are many benefits to productizing consulting, including:

  • Upgraded Client Experience: Client Experience is an important part of a productized product, so it's critical to have a productized product with high-quality service. This includes clear expectations and quick ordering.
  • Easier Scaling Revenue: If your productizing consulting is successful, the price must be adjusted upwards to maintain revenue levels as your capacity changes. Productizing consulting helps prevent time wasting that occurs when productizing a product.
  • Predictable Profit Margins: Productized products are more predictable than productizing consulting, which means you can accurately predict how much time a project will take and the resources it will demand. This makes for better budgeting in your company's productization plan.
  • Reduced Marketing Costs: You don't need to productize products in productizing consulting, which reduces your marketing costs. Instead, you can use productized products to provide more inbound leads with a landing page where visitors request productized products.
  • Acquire Employee Easily: The productized product nature of productizing consulting enables you to hire employees more easily.

With a productization plan, your productizer can focus on what matters most: delivering value for customers while removing the distractions that come with managing projects.

  • Better Understanding Your Customers: You'll have better insight into customer needs as they work closely together with your productized products. With a product, you can identify painful problems and validate what so many others are saying about your product's value.

Productized Consulting is a great way to monetize and build your productization plan. By knowing how it works and when it works best , you can provide high-quality services to earn more for yourself and your company.

Financial Tactics behind Productized Consulting

For productized consulting, you can productize just about anything that doesn't require significant customization.

If the productizing product involves a lot of customizations and very little standardization, then it's probably better to stick with traditional hourly billing for productizing consulting services.

The point is as long as your customers keep coming back for a productized product, you will never productize your product.

There are many reasons why you should consider productizing consulting, including:

1. Increased Revenue

  • If you're able to develop a set of documented processes that work effectively for your customers, then it's possible to charge recurring fees rather than one-off costs.
  • Recurring revenue is more lucrative and scales better over time because the cost of billing, accounting and relationship management is lower.

2. Reduced Risk

  • Because you don't need to change much after productizing consulting, there's less risk involved. This means you can focus on earning recurring revenue rather than making risky investments that might not pan out like with productized services .

3. Improved Quality Assurance

  • When customers are paying for productized consulting services on a recurring basis, they will be more likely to provide regular feedback and make requests regarding how you can improve the service.
  • This helps you prevent quality problems and deliver higher levels of customer satisfaction.

4. Lower Marketing Costs

  • It's easier to acquire customers for recurring revenue than one-off projects through advertising because people don't need to trust you or know how your product works. Instead, they only care about the value it provides and how often they can use it.

5. More Predictable Income Streams

  • One-off projects can be harder to predict because they're usually more complex. With recurring revenue, everything is laid out in advance so you have a better sense of what your future revenue looks like .

6. Improved Cash Flows

  • Sales projections are easier to make with recurring revenue because customers receive value on a regular basis instead of at infrequent intervals. Because of this, you'll have an easier time forecasting cash flows for future projects.

7. Less Time Wasted on Admin Tasks

  • If you productize consulting properly, then most of your tasks will be product related. This leaves you with more time to concentrate on other aspects of your business, such as marketing and leadership/mentoring, which can help you grow your company even further .

8. Higher Levels of Focus

  • When customers are paying for a productized consulting service, they expect the very best from you because there isn't much room for error.
  • Your mind is always in "product-mode" rather than "project-mode," which helps you better manage distractions and maximize productivity .

9. Less Stress

  • Productizing consulting allows you to work at your own pace without being tied down to specific deadlines or customer expectations since it's recurring revenue.
  • You might have an overall target but everything else is up to how quickly you can productize consulting services for customers.

10. The Ability to Scale It Up or Down

  • You should always be growing your business, but depending on the market conditions, you might want to scale down or ramp up your operations.
  • With one-off projects, scaling comes with its own challenges because you have to re-market yourself every time. However, people are more likely to sign up again if they've had a positive experience with your services in the past .

What Consulting Services can be Productized?

There are productized product companies in every kind of consulting service you can imagine, including web development, design, content, copywriting, customer research and growth consulting.

If the productized product is successful, the price must be adjusted upwards to maintain revenue levels as your capacity changes. Productizing consulting helps prevent time wasting that occurs when productizing a product.

You don't need to always productize a product in productizing consulting, which reduces your marketing costs. Instead, you can use productized products themselves to provide more inbound leads with a landing page where visitors request productized products.

The productized product nature of productizing consulting enables you to hire employees more easily.

With a productization plan, your productizer can focus on what matters most: delivering value for customers while removing the distractions that come with managing projects .

You'll have better insight into customer needs as you both work closely together. By seeling a productized product, you can identify painful problems and validate what so many others are saying about your product's value .

Pitch and launch Your Productized Consulting Service

A productized consulting service can be difficult to productize because you are also trying to sell the productization plan.

You must clearly communicate how much work goes into each task, what customers will get in return for their investment and how your productizing strategy is unique .

Your productizer should already have a clear idea of the most components of your productized consulting service.

Pitching a productization plan productizing consulting is easier when you have an idea what customers want and how much they are willing to pay for it .

This makes pitching a productized service less risky because the customer has already said that they're interested in buying something similar, which increases the value of the productized product.

How to Price Your Productization Plan?

  • Pricing a productization plan is difficult because you have no idea how much sales will be in the future, so it can't be compared to past work.
  • Instead of pitching your hourly rate or value-based pricing, use competitive analysis and productizing product to find your productized product.
  • If you can productize your product alongside a few companies offering similar services, it is easy to use their pricing as an anchor and propose something in the same ballpark.
  • Productizer should also consider market demand when deciding on price because there might be too much competition if the productization plan costs less than the productized product itself.
  • The productization process for consulting services is not very different from traditional productizing product, except that it doesn't have to be as detailed because there are fewer variables involved .
  • You just need to outline the crucial elements of your productized service and explain how they work together in order to achieve specific results for customers. Once you productize your product according to these points, they can pitch the productization plan to customers and help them understand how it works.

How to Sell Productization Plans?

Selling productization plans can be challenging when it's unclear how much time is required for productizing consulting or how your plan works. This makes the process more frustrating than selling a traditional productized service with clear expectations and pricing .

To sell productization plans productizing consulting, you must productize a product. It is necessary for both sides to understand the value of each element in your productized product.

You need to lay out all the components that make up a productized service and their estimated time frames so they can clearly see how much work is involved .

How to package your consulting services

There are 7 approaches in packaging productized product:

1. Market focused approach

The "market focus" productize product is a type of productized consulting service that helps a business make their products or services more marketable.

Example: creating sales funnels, establishing email campaigns, and building landing pages for online marketing campaigns.

You can use the market-focused approach to generate high-quality leads in productizing your product as well as to produce some income to boot.

2. Product-focused approach

The "product focus" productized consulting approach is where you take a small piece of your service and sell it as a product.

Example: audits, discovery sessions, e-books, or e-courses.

You can use the productization approach to productize your product as a more affordable productized product for customers and generate recurring revenue through subscriptions.

3. Service-focused approach

The "service focus" productization approach is where you take all or some of your services and package them as a single offering.

Example: webinars, live events, workshops, training sessions.

You can use the productization approach to productize your product as a more expensive productized product for customers and generate recurring revenue through monthly plans.

4. Solution-focused approach

The "solution focus" productization is where you provide a complete solution to customers' problems and get paid for the results.

Example: Coaching, mentoring, mastermind groups.

Productizers can use the productization approach to sell more expensive productized products and generate recurring revenue through monthly plans.

5. Content-focused approach

The "content focus" productization is where you create educational content that customers can use to solve their problems. Content creation will be an ongoing process for this type of productized consulting, so it's best suited for people with the right expertise and writing skills.

Example: e-books, podcasts, videos, webinars.

6. Community-focused approach

The "community focus" productization is where you create a space for customers to come together, collaborate, and solve each other's problems.

Example: Inbound marketing communities, mastermind groups, regional meetups with paid attendance.

7. Hybrid approaches

Some productizers use a combination of two or more of these approaches to create their productized consulting services.

Example: Webinars and live events to support the e-book, which is available for purchase on your website.

Where can you sell your productized consulting product?

Now that you understand how to package your consulting services as a product, it's time to decide where you'll sell them. Here are four options:

1. Direct sale – One of the biggest advantages of selling products is that they have a higher perceived value than your services.

You can leverage this advantage by selling directly to customers offline or online  and making them aware of the difference.

2. Distributors –  You can also sell productized consulting through distribution channels, such as Amazon  or your website.

3. Affiliates –  Your customers might not be the only ones interested in your productized consulting services. You can reach out to other people and companies who can sell it as an affiliate product as well.

4. Existing platform – If you're a speaker, author, or you have a large online following, you can sell your productized consulting directly on your website or on a third-party platform like Udemy .

Before you start selling, make sure you know who your customer is and what they want.

Once you have a complete understanding of your target customer and their needs, you can create a productized consulting offer that caters to them perfectly.

Why should you do productized consulting?

As mentioned earlier, people love products because they have a higher perceived value than services.

When you sell something instead of just offering your service, people will think that what you're selling is more valuable and worth paying for. Also, there are several other benefits to consider:

1. Sales process – Selling products instead of services makes the sales process easier for you. You don't have to call or meet with your customers regularly, and they won't expect it either.

2. More revenue – Productized consulting can help you generate more revenue than selling your services to different clients. Your old clients might want to buy upgrades, so this is a great thing to explore, especially if you're having trouble closing sales with them.

3. Recurring revenue – You can also keep your customers longer by providing recurring productized consulting plans that they have to sign up for on a regular basis.

4. Scalability –  Selling products is scalable because it doesn't take much effort to create more. You can create different products at any time, and sell them continuously to different customers after launching the initial product.

5. Easier to manage – Productized consulting can be easier to manage than selling your services because you're dealing with fewer clients every month (one client only). Also, there are no payment terms to consider when you sell a productized consulting service.

6. Higher perceived value – Selling products is very different from selling services, even if these are your own services that you're trying to sell.

People will perceive what you're selling as more valuable and worth paying for because they know that creating a product is a lot of work compared to offering a service.

7. Less time consuming – If you're an advisor, consultant, or coach selling your service to different people every month can take a lot of time. It might even get to the point where it starts affecting your other personal and business responsibilities.

Productized consulting makes it easier for you to manage your business by streamlining things and spending less time on selling.

What are the limitations of productized consulting?

Just like every other business model, there are also some downsides to selling your services as products. Here are some of the main limitations you should be aware of:

1. Less flexibility – Productizing your service might make it less flexible for you and your customers because they'll have to sign up for it on a regular basis.

2. Not suitable for all types of services – Productized consulting is not suitable for every type of service, so make sure you create the right offer before jumping in and selling your services as products.

3. Less customization – You can't customize your product like you would with a custom-built service because you have to create a standard offering.

4. More effort – Creating a productized consulting offer requires extra effort and cost, so make sure you can manage these costs before going ahead with your decision.

5. Committing to a schedule – Your customer might not be happy about having to pay for your service on a regular basis, and accepting a certain time frame can be hard for them, especially if their needs change.

6. Less control – You won't have as much control or flexibility when you sell a productized consulting offer because it's already set and included in the price.


Which CRM Portal Should You Use?

Now that we have discussed productized consulting, we have reached the point where you will need to make a critical judgement in your journey.

CRM Portal Softwares are essential in helping you build your business from the ground up. They allow you to manage your clients, collaborate with them and handle your invoicing.

There are many options such as Dubsado, Asana, ManyRequests etc. which we have covered in different articles but today I want to tell you about my personal favourite; ClientVenue.

ClientVenue is an all in 1 CRM platform for selling your productized consulting service and has a bunch of unique features and add-ons that make it stand out from the crowd.

Why Should You Go With ClientVenue?

Client acquisition is becoming increasingly difficult, and many consulting firms have found that generating a bespoke marketing plan for every customer leads to over-complicated processes, manual data entry, and little return on investment.

One of the most popular Customer Management Platforms available is ClientVenue. It's one of the most powerful and user-friendly Client Management Platforms currently on the market, having been utilized by a variety of consulting firms and freelancers to optimize the delivery of their services.

2. Easy to view Services section

  • The payment method of each service is listed next to it. As a result, you may discover all of your company's services in one place under this tab.
  • With only a few clicks, you may quickly generate preview links for your clients. The client only has to click on the link to see how far you've progressed on the task.

3. Integrates with the best known tools available on the web

Clientvenue does an awesome job and preselects for you the most appropriate tools to link your organization ensuring clarity in communication and seamless integration to ensure both you and your client are on the same page at all times.

  • You just need to sign up for any tool of your choicel (for eg. Slack) and it will seamlessly link to your ClientVenue workspace.
  • Simply enter ClientVenue with the one-of-a-kind reference code, a live website or your licensed licence details, and it will handle the rest.
  • Furthermore, this list is not exhaustive since Clientvenue is continuously integrating more and more vital tools such as Hubspot and LiveChat, to mention a few.

4. Personalized Workspaces

  • Personalized workspaces allow you to neatly arrange all your projects in one place without having to keep multiple tabs open at once.
  • The neat interface coupled with the simple to use design allows for you to eliminate the need for maintaining extensive records.

You can include both services provided outside the client and from within the client seamlessly along with having a record of archived and completed projects as well.

You will be able to see all your projects which are automatically subdivided into:

  • Internal: To be used within your organization
  • External: To be done for a client
  • Archived: Projects archived by you
  • Completed: Completed projects

While creating a project you can even add teammates and edit all these details as soon as the need arises.

To learn more: CLICK HERE

All these features allow for ClientVenue to be the leading CRM Portal Software and will allow you to sell your productized consulting service to the most satisfied clients.

Conclusion

Customer experience is crucial in productizing products for your prospects. The immediate next step they need to feel “at home” and not like they were sold to in a meaningless way. Make sure to satisfy all the customer needs before creating your productized consulting service..

Productized consulting is a great way to expand your business, create additional revenue streams, and attract new customers. Follow these tips to maximize your chances of success.

Make the correct important decision and use ClientVenue as your stepping stone on the road to success.

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