A productized service is a product that is made from a physical or digital product mainframe, and then broken down into several pieces. This way the product can be sold as individual services to customers instead of as one big product.
The idea behind it is that this will allow companies to sell their products at higher margins while allowing them to have more control over what they are selling.
In this blog-post I want to talk about how you can make your productized services more appealing and profitable for your company!
If you're a freelancer or consultant and you trade your hours for money, there's generally a moment when you ask yourself,
“Is this it?... Can my consulting business ever scale without me having to do all the work myself?”
The notion of turning your service into a product begins to creep into your thoughts.
Or, maybe you're in charge of an agency with a team and are still dependent on project-to-project revenue to keep the lights on.
For us who have these nagging concerns about the billable hours model for client services, productized services have become the preferred business strategy.
And why should you trust me?
Simply because I've been there.
It wasn't until I went to the productized service model that I was finally able to break free from the project-to-project hustle of selling my time.
It turned out that offering productized services instead of starting from scratch each time was a lot easier than I had previously thought.
Are you a freelancer who has been self-employed for a while, a consultant with a lot of work, or an agency owner who's dealing with the difficulties of managing the workload?
A productized service may be the quickest way to start scaling up and developing your firm into a more valuable asset if you're any of these things.
What is a productized service?
Let me elaborate more on defining what a productized service is before we begin.
Customers see a productized service as a customized “done for you” solution with a compelling value proposition that is offered at a set price and scope.
From the founder's viewpoint (that's you), a productized service is one that runs smoothly and continues to generate and develop without your direct involvement.
When it comes to examples of productized services , there are plenty of variations on the business model to consider, and I cover those in-depth in this guide itself in a different section.
To start selling your own productized service, you can sign up for free on the below link:
How is a productized service unique?
Productized services differ from freelancing and other types of services because when you come up with your productization plan, you will target a specific type of client and your service will solve a very specific business need.
Your clients have a business pain point that your productized service is designed to solve.
You will use predictable, repeatable processes for delivery of your service, making your clients' experience smooth and enjoyable. Your team will know what to expect every time.
Productized services also offer simple pricing options, presented as ready-made packages, so that means no more proposals for clients. All of your clients' expectations are spelled out for them from the start.
When it comes to revenue models, productized services come in a few different flavors, from recurring subscriptions (or retainers) to one-time engagements.
The difference is the price is often fixed, sometimes with a few packages to choose from, with a predictable, pre-packaged scope of work.
Who is ideal to sell productized services?
I enjoy productized services because I've seen many different entrepreneurs utilize the productized service model as a method to scale up and change their company.
There are, however, a few types of individuals that are particularly well-positioned to start a productized service:
Freelancers & Consultants
If you've been working on your own, doing a certain type of job like website creation or copywriting, marketing, engineering, or design, and have grown weary of it, this may be a wonderful next step.
This is especially true if you've been playing the billing-by-the-hour game for some time and are tired of it.
The agency model, on its own, can create a successful business, but scaling it presents certain problems.
This makes the productized services approach particularly appealing to digital (and non-digital) agencies of all kinds looking for more predictable income development.
The quickest, most straightforward method to generate money on Facebook is by selling advertisements. Because Facebook allows for the continuous use of your data and does not give you a reason to dispose of it (unlike many other services), you may develop an ideal revenue stream.
This is especially true when businesses make use of recurring revenue streams to maintain their business stable and grow it.
Many organizations choose to productize a service because it may assist them in reducing the "chaos" that frequently surrounds many projects for numerous varied clients and needs.
Productization allows you to focus on your best services, for your best kinds of customers, and manage your business more effectively and predictably.
When you've developed software, you've got half of the problem solved you have the tool. However, you haven't yet solved the other half of the customer's problem: how to use that tool?
Often, what your customers really need is to be able to implement the tool you've created or that they've purchased.
For the software, concierge onboarding (a.k.a done-for-you or done-with-you implementations) can be produced as a productized service.
Your productization strategy is based on your software or may be applied to marketable software in the market. Yes, you may build your productization framework around any software!
What are the advantages of productizing services for freelancers and consultants?
- With productized services, you may develop your company while also serving more consumers without having to perform a lot of hands-on work on each project.
- The model is reproducible and should only need little changes, not complete overhauls, from client to client or project to project.
- Once you've productized your service, you may offer it to many clients. This might allow your earnings to rise while keeping costs low. You could even extend the range of your service as delivery should be simpler.
- Although there is no guarantee that you can make money by selling this product, it's a recommended method to generate income. You may market this product while working on other projects or taking time off.
- If you want to hire a few people, you may teach them how to sell these pre-packaged solutions for you.
- If you want to take a step back from being fully in command, you could also put your service portfolio up for sale and hire someone new to manage it.
- This may, at first, appear to be similar to charging by the hour, per word, and so on. However, with productized services, you know exactly how much money you'll make after each project is completed.
- This cuts down on the uncertainty of whether a portion will take longer or shorter than anticipated and if you should turn down a project in favor of a more lucrative one.
- You may also sell subscriptions to your services for even more predictability. This allows you to quickly create and market a productized service without having to spend time developing it over and over again.
- It may also help you avoid scope creep, saving you time and money while also preserving your profit per customer in the long run.
Productized Business Model
The possibilities for your productized services could be limitless, and they're restricted only by your imagination. Most people can benefit from most service businesses' current popular solutions, based on their current market offerings.
Consider how many clients a personal trainer could handle if they just do individual hourly sessions. it seems limited, right?
The same instructor can run online training sessions and support a much larger client base along with increasing his/her income manifold.
The key is to focus on the needs of a certain client group. If you succeed, you may discover that many consumers are excited to hire someone to perform well-defined, pre-made work at a low price.
Here are a few examples of productized services from businesses that have made this concept work for them. Some are continuing subscriptions with services delivered at regular intervals, while others are one-time events.
The thread that runs through all of these examples is that you're selling the same service or labor to several consumers, with no customization or extras required for each.
Productized Content Creation Services
The content production service is a productized service offering. After your clients learn the value of content marketing, they may see that it's difficult to manage internally.
Take a look at a couple of content creation productized service companies:
Scribly: It offers you with scalable content marketing services to boost traffic and leads. Growth Machine plans, writes, optimizes, and then builds links to their customers' business blogs.
WEBFX: With content creation services from WebFX, they will help you create and implement click-worthy content that helps you reach more qualified leads for your business
A few content types they offer are:
- Blog Post
- Long-form content
- Online guides
PodReacher: Djordje Radosevic of PodReacher, a podcasting and online video firm in New York City, explains why voice recordings are valuable. The company's mission is to use audio data to generate high-quality material that is both appealing to audiences and search engines friendly. B2B businesses wanting to repurpose existing content but lacking the resources to do so.
Clients may purchase the material one at a time or in bulk (with a potential bulk discount), and there's also the option to provide a recurring service that delivers them with a fixed number of pieces each month.
KENJI ROI: KENJI ROI specializes in Amazon listing optimization. They analyze their clients' goods, identify and compare competing items, and improve the product description as well as keywords.
They know how to modify the language to target buyers who are looking to solve an issue or remove a pain point after years of expertise.
Lower Street: Lower Street assists firms and consultants in developing a podcast strategy, content, and marketing. Other businesses focus mostly on postproduction, but Lower Street can handle all phases of production from concept to launch.
This firm's distinctiveness stems from the fact that it does not have a pricing page that allows potential clients to place orders immediately. Instead, the call-to-action always takes you to a contact form, which promises a free consultation.
NOTION Design Group: NOTION Design Group, like many other productized service providers, provides free consultation calls. Customers may purchase services immediately from the pricing page if they have been influenced by their impressive web design portfolio.
There are only two options to pick from, making the decision simple. A third option appears only in the order form and includes a one-time branding package to the cart; it is not available until after you complete your purchase.
50 Pound Social: For many, social media is a time-consuming chore they cannot afford. By providing a simple, monthly recurring social media management service, 50 Pound Social has made this niche market productizable.
As the name implies, the cost is just 50 British Pounds per month, and the basic plan includes five content items each week that are tailored to the customer's specific business requirements. A content planner also works with the client to develop a strategy for content.
The premium plans are ideal for individuals who want a little more than the basic services. Instagram postings, as well as a Facebook Ads campaign, are among the other things included in these higher-cost plans.
DropShip for Sale: Dropship For Sale is a dropshipping company that specializes in pre-made online shops. The stores are already up and running, with a registered domain name and logo -- all ready to be handed over to the new owner.
DropShip for Sale offers a wide range of templates in twelve different categories, so it's easy to find one that fits your needs. If you want something more customized, you may use DropShip for Sale's pre-designed templates, customize the brand, name, and logo. Of course, any template may be previewed live via a demo.
There is also the option of having a custom solution built by the service provider in addition to the above-mentioned one. The cost is only revealed upon request.
Productized Website Design Services
Many business owners are concerned about the expense of website development and avoid or delay the project. A done-for-you package with a set price might be enticing.
There are several website design services on offer. Some of these include:
- Restaurant Engine offers website design as a packaged service for restaurants.
- Landing Page in a Day is a quick solution for landing pages as a productized offering.
- WP Quickie manages your WordPress tasks with a support plan.
Productized Graphic Design Services
Graphic design services that are readily available to the public are quite well-known. Some business owners aren't sure how much to budget for it, so they appreciate a set service at a known price.
If you're looking for a graphic design service that can be produced, here are some things to look into:
The "#1 Unlimited Design Service" is what Limitless Designs claims. For a set rate per day, Limitless Designs provides you with a dedicated graphic designer.
Some services that will assist you on this are:
Graphiczoo: From branding and web design, to advertising and artworks, we’ve got you covered. Improve the edge of all your graphics with the GraphicsZoo standard of quality.
- Fast Turnaround Time
- No Hidden Charges
- Unlimited Revisions
- Complete Source Files
- Freedom of Scale
Mainstreethost: Their motto of, "Colorful, high-resolution images, engaging videos and illustrative graphics can help potential buyers better understand your products and services, and help them see—literally—the benefits they offer." explains perfectly how they can ensure your design to be the most vivid and suited to your needs.
- A rich palette of options
- Logo design and cleanup
- Web banners
- Business cards
Productized Consulting Services
It doesn’t matter what type of consulting you do…
…there is ALWAYS a way to turn your services into a profitable productized offer.
Let’s take a look at four successful and profitable productized consulting services:
1. WP Curve
Consider an example of a WordPress website design service. You pay the consultant, and they create your website to fit your specific requirements. WP Curve identified all of the elements that go into creating a WordPress consultancy service.
2. UI Breakfast
At UIBreakfast, Jane Portman has built her processes around a series of productized consulting offers:
She's figured out what her clients want, focusing on three or four highly particular and easily understandable services that will get her customers from one place to the next.
She avoids price haggling, proposals, and qualification by revealing the cost upfront. This leads to clients being aware of the service's fee before they contact her which leads to a higher conversion rate.
Think about your ordinary run of the mill analytics consulting services.
You pay a consultant and they collaborate with you to develop insights based on the data.
Measurement Marketing, a firm that provides marketing analytics training, also offers private guided instruction where they've divided their standard engagement into a system:
There are multiple steps involved in writing a book — and it incorporates much more than just writing.
Scribe has broken down the whole process into seven steps, which they detail on their website:
After these 4 examples, you should start to see some patterns.
Consultants deconstruct an existing service, break it down into its fundamental elements, price it, and sell it as a productized service offering.
That’s the essence of a productized consulting service.
What is the main takeaway from these examples?
Which of your services might you break down into a process and market on your consulting website?
It's crucial to note that the experts in these situations have not eliminated the aspects of service. Instead, they are honing in on the most essential parts of these services.
There's no reason you can't do it in your own firm now that you know how other consultants operate.
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Using our platform you will be easily able to set up automatic systems to sell your productized service and ensure its success. You will be able to connect with all the popular payment platforms, automate your billing process and much more.
Hope this guide assists you in learning everything about productized services and how to sell them profitably.
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