Productized Service Guide: Structure a System To Allow You To Scale

Productized Service is commercializing your service as a product with a specific price. At its core, it's pretty much the same as any other type of business because in this you sell your expertise and time as a packaged product to clients for money in return.

Productized Service Guide: Structure a System To Allow You To Scale

Productized services are all the rage these days. There seems to be a new productized service popping up every day and they always seem to be more popular than regular old services.

With so many options, it's hard to decide which one is best for you. That's why I was really excited when I came across this guide on how to start a successful productized service company.

It covers everything from what type of clients you should focus on and even what type of services you should offer or how to manage your team!

If any of those sound like something that interests you then keep reading because there is some great information in here about the benefits of starting a productized service company as well as some great tips on how to get started. The first question that many people have is what exactly a productized service is.

What is Productized Service?

Productized Service is commercializing your service as a product with a specific price. At its core, it's pretty much the same as any other type of business because in this you sell your expertise and time as a packaged product to clients for money in return.

However, instead of taking on one client at a time and working with them until their project or tasks are complete, you are selling your expertise to them on a recurring basis.

This is often done via an online platform such as WordPress or Shopify and can include services like web design, e-commerce store management, email marketing campaigns, and more!

What are the Productized Service Models?

There are many different models to consider when you want to start a productized service company.

Some of the most popular ones include:

  • Per Project Model  

This model involves selling your services on an as needed basis for each individual project, e.g., website design or email marketing campaigns.  

It's usually best if this is a service that is only needed occasionally and when it's not, you can offer something else.

  • Per Month Model

This model is the same as a single project with one huge difference which is instead of billing clients on an hourly basis or for each task completed, you bill them monthly in advance until they decide to cancel their contract with you.

  • Per Annum Model  

This model is similar to the monthly model where you are billing clients in advance on an annual basis.  

For example, if your client wants a web design package that includes hosting and maintenance for one year then they pay it all at once up front before the service even starts!

  • Flat Fee Model

Just like the name implies, you charge your clients a flat fee for each service that you provide.  It's best if the services are fairly simple and easily repeatable to ensure that you aren't spending too much time on any one client.

  • Membership Model

This model is similar to the monthly or annual models but instead of billing clients an upfront fee, you bill them a monthly fee for as long as they want to remain a member of your service.

  • Service Package Model  

This model is where you offer multiple services at once, usually bundled together in some way via different packages options that allow clients to pick and choose the ones that best suit their needs.  

For example, if you offer web design and SEO then you might have a package that includes both, one for each individual service, or even the ability to mix and match between different services.

  • Hybrid Model  

This model can be any combination of two or more productized service models such as offering per project based on an annual membership fee where clients don't need to worry about paying each time you complete a project for them.

How Do You Structure a System?

Once again, when you have a  service business, you need to create systems that allow your team members or yourself to complete the work without having to use any brain power.

For example, if you are selling a web design package then it's important that every step of the process is documented so anyone can follow them and know exactly what needs to be done.

1. Sales

This part of the system involves everything from how you attract clients to what happens once they sign up with your company.

It's also important to ensure that everyone on your team knows exactly why potential customers come looking for your services, how it benefits them, and how they can get the best results possible.

2. Project Management

This is where you document exactly what needs to be done and how it should be done so that no time is wasted when a client asks for something new or even changes their mind about what they want!  

This system also allows your team members to work more efficiently because they don't have to go back to the drawing board every time a client wants something different.

3. Operations

This side of system allows you or your team members to focus on their strengths by letting them know exactly what needs to be done, how it should be completed, and when certain tasks need to be finished by.  

For example, if you have a client that needs hosting and maintenance then your operations system should let you or someone on your team know exactly when it's time to update the site.

4. Communication

This is where all of the details about what's happening with any given project are documented so everyone involved knows exactly what they need to do next, whether its updating an invoice or updating the client on their project.

5. Financial Management

Your finances will consist of everything from how you charge clients to how often you send invoices and even which tasks are billed at what rates.  

For example, if your company offers web design in addition to hosting and maintenance then it's important that these services get charged at different rates and that they are billed to clients on separate invoices.

6. Feedback Systems

This system is where you document any feedback so it can be used as a guide for future projects or even reviewed by your team members who might discover an improvement they never thought of before!  

For example, if one client said their site was too slow then your feedback system can tell you to focus on this for future clients who might have the same issue.

7. Scheduling tasks

This is where you document which projects need to be worked on and when so that no one falls behind or double books a project with another client.  

This ensures everyone knows exactly what they should be working on and when they should be working on it.

8. Risk Management

This is where you document all of the potential risks so it can tell your team members what needs to be done in case something goes wrong and more importantly, how much time will need to go into fixing these issues!  

For example, if a client's site crashes because their hosting company went down then this system will be able to tell you how much time is needed for your team members or yourself to find a new hosting provider and migrate the client's site.

9. Quality Control

This ensures that all of the work being done on any given project is completed at high quality so clients are getting what they paid for!  

For example, if your company charges clients for revisions then this system should be used to ensure that all of the changes are made correctly.

What Are The Benefits Of A Productized Service?

If you've been in the service industry before then you know that it can be extremely hard to scale your business and maintain profitability as well as client loyalty.  

This is because once clients start getting comfortable with what they are paying for then they can easily start pushing back on their rates or the number of hours you are spending with them.

However, when you productize your service business everything changes!  Since clients pay in advance and there is no limit to how much they spend (or how often), it's easier than ever to scale up quickly without worrying about how you are going to keep your clients happy.

Of course, this also means that it's easy for them to cut ties with you as well if they don't like what they are being charged or the service isn't up to their expectations so be careful!

One big benefit is that it allows you to focus on a specific type of clientele, whether they be local or international based companies like Sears and Kmart who had over 100 different types of products ranging from clothing, tools, and electronics.

This means that you can charge more for your services since it's based on a recurring income model versus just taking on one project at a time with each client.

Another great benefit is the ability to scale up or down as needed, meaning if you have some slow months where there are fewer projects available then you don't have to worry about laying off your team or firing yourself!

You can also focus on different services if one type of productized service isn't working out for you.

For example, when I first started my business I focused only on website design and management but later expanded into social media marketing as well because it was a better fit for my team.


Structuring and running a productized service is all about planning and having systems in place to maintain profitability and client satisfaction.  

This is why it's so important that you start with a plan on what type of products or services your company will offer as well as how much they should be charging and the hours needed for each project.

Once you have this figured out then it will make life much easier since you have a specific plan to work from and know exactly what your team needs to be spending their time on as well as how much they should be billing for each project!

Make sure to keep everything organized with an internal system of checks and balances so that you can scale up quickly while making all the arrangements to always deliver high quality work.

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