As a freelancer or a consultant, have you ever wondered, “How can I scale up my business and bring in more revenue with what I currently do?”
Well, productized services are your best bet. You can grow your business into an asset that you market as a product.
So, What Is a Productized Service Exactly?
When you productize your service, you are essentially choosing one aspect of your service, creating a product that solves a specific problem of a client base or target market and delivers the solution in a package.
For example, consider designing services. You can create a product for regular tweaks on existing designs, offer logo redesign products or create any other package that appeals to your target market. Instead of marketing it as the service, like you usually do, you set a fixed scope of your work for a fixed cost that the clients can buy whenever they require.
From the customer’s perspective, a productized service screams, “It’s made to fit you.” Since you offer the same kind of solution to multiple clients, you will spend less time working and make more money than before.
How Are They Different from Traditional Online Services?
A productized service is completely different from the usual freelancing services In terms of its packaging and delivery commitments.
In freelance, you offer numerous solutions that are customized to the client’s needs. You spend time understanding the pain points of a client, create a solution for them, negotiate the rates and then finally start working. And when the next client comes, the cycle begins again from the top.
On the other hand, in a productized service, you offer a ‘readymade solution.’ You have already researched your target market and have come up with a product that addresses one or a few main pain points. The client will come to you to solve for that specific product and they are clear about the results from the beginning.
Different Terms That Means Almost the Same
There are several ways by which you can create a product for the services you currently offer. People productize services by many names. But no matter what we call, when you create a circle around one specific service and market it as a readymade solution, you are productizing it.
You don’t have to go out of your way to do anything. All you need to do is continue what you have been already doing and productize it!
Here are different ideas to productize your service with what you currently offer.
Packaged services are a broad term for productizing a service. You can create a package out of any service you want. There is always a need for a complete package of a service that saves the client’s valuable time.
A packaged service can be anything that an agency can offer, like a blogging product that includes ideation, writing, editing and publishing or a logo design product.
Done for You
Through the ‘done for you’ products, you take up a piece of the client’s work—it can be working with software, creating content and updating it on the website, tracking some metrics or anything else.
Such products are majorly result-oriented, where you promise the best results more quickly and efficiently. Again, you can create a ‘done for you’ product with almost any service you offer.
Monthly Flat Rate Services
This is a type of subscription product through which you offer a pre-defined service marketed together as a product. The clients will pay upfront a monthly charge to buy your product, or you can also offer a six-month or a one-year subscription model.
This works great for repetitive needs like blogging, design changes, software updates, marketing and so on.
Digital Services at a Fixed Price
Unlike the previous monthly flat-rate services, digital services as a product may even be a one-time solution.
It can be something like a website development product, copywriting the website content for the first time, training the employees for new software or product launch marketing.
Examples of Productized Services
Are you getting an idea of what a productized service can be? (Hint: It can be anything!)
Let’s look at some successful examples of products that have converted the services into an attractive package.
MeetAnders is a productized design service that offers designing services at fixed rates. It’s started by a bunch of graphic designers to create a product around the service they have been providing day in and day out.
Here’s how their packages look like:
With a monthly package with two different pricing and services, the designers work as a team of two to offer the best designing services.
CopyMasters is a product that offers copywriting services. They have a bunch of skilled copywriters and offer creation of SEO-optimized blogs, press releases, eBooks, email content, audio intro article, authority content, audio transcription and research.
They have a simple monthly plan at $370 that includes unlimited requests and unlimited revisions—something that would seem lucrative to many businesses.
GrowthNinja offers targeted Facebook Ads with the best profits. Unlike other productized services that have a fixed pricing model, GrowthNinja has a performance-based pricing model. They only get paid when they deliver, and it shows how much they are confident in their results.
Websites in a Weekend offers a product that’s unusual—sale page websites built over a weekend. They have a simple signature product pricing structure at $97 per month for a five-page website that’s made in a weekend.
Who Should Start a Productized Service?
The best thing about productizing a service is that you can practically create a product out of anything. It can be as simple as transcription service to accounting and marketing.
Several people and businesses can create a product with their services like:
Of course, freelancers are at the top of the list. If you’ve been offering any freelance service, be it writing, designing, marketing, consulting, strategizing or coaching, you can build a product around it.
When you are new to your business and have multiple service offerings, creating a value-based product is the best solution. You can launch a minimally viable product and expand on it over time. You will have the opportunity to create a steady stream of income and will have less time running around for clients and tweaking your offerings based on the clients.
● Marketing Agencies
If freelancers offering individual services can do it, why not marketing agencies?
As a marketing agency, you already have a holistic package of what the clients need. You can build different products around it with the combination of SEO-based content, designing and marketing as a monthly pricing model.
● If You Lost Your Job!
Well, I know it’s weird to add this to the list, but times are becoming uncertain. People are getting laid off from work for no fault of their own. So, it’s the right time to use all of your knowledge and connections to build a product that utilizes your best skills and makes you good money.
Benefits of Owning a Productized Startup
There are so many advantages of founding and owning a productized service company.
● Stop chasing behind clients anymore!
You only start the work after the client ‘buys’ your product, meaning upfront payments!
● Client-specific products that focus on solving an issue.
The product you build is aimed to address a specific problem of your client base. So, you have the chance of landing more clients doing the same thing continually.
● Offer free trials or cancellations to entice new customers.
Offering trails or cancelling the service isn’t something you can generally do as a service-based company, few companies are doing that though. But when you have a product, you can offer free trials, a money-back guarantee or limited time cancellations.
● No more pitch your heart out anymore!
Remember all those times you spend hours on sending in proposals and spend your time pitching? Well, you don’t have to waste that time when you have everything laid out on a product.
● Better revenue with minimal work.
As a value-based product, the scope of your work is limited. Yet, you get good revenue as you have a minimal investment in the creation of the product.
Disadvantages of Starting a Productized Service
As much as there are great opportunities in a productized service, there are some disadvantages like:
1. Fewer Profits into Your Product
When you productize a service, you start gaining more customers, which also means you will be putting back more to develop your business. As a result, you will be hiring a new team and spending on marketing that may reduce your earnings.
2. Your Existing Clients May Not Like the Productized Service
If you have been in the industry for so long, you will have a few regular clients who depend on you for a specific set of tasks. Some may not like how you have productized your service and there are chances that they might leave.
3. More Time to Grow
It’s not an overnight success story when it comes to a productized service. You need to invest considerable time in expanding and acquiring regular clients. It can be some time before you make your first profit and figure out new things like marketing, website management, employee management and many more.
Common Myths Associated with Productized Services
Many myths are floating around about productizing a service. Let’s address some and own up the reality.
Myth #1: You don’t have to talk to clients anymore.
If this is your motive for productizing a service, then think again! While you may think that having a ‘Buy’ button on your website will help, it isn’t always so.
In any service industry, people want to know more about the people who offer the services and what they stand to receive. Even when you have all that information on the website, clients rarely do click on that ‘Buy’ without talking to someone in your company.
Myth #2: A productized service should be all about you.
It isn’t necessarily true. This is the difference between freelancing services and productized service. In freelancing, people look at the person behind it. But in a productized service, people concentrate more on the value they receive and the result except for one-to-one consulting service. So, you can create a productized service with your position in the industry without making it all about you.
Myth #3: It’s a one-fit-for-all product without any customizations.
This is a myth that many clients have. While you are offering a fixed scope, fixed price model, it doesn’t mean that you cannot customize it according to the client. While you can still retain the process and the basic outline of the product offerings, you can even customize it by hiring the right talent and by offering customized deliverables within your scope.
Productized services are an excellent opportunity for freelancers and service providers to grow their business with the skills they currently have. You can increase your income and scale up the business by specializing in a few areas that solve the client’s pain points.