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SSK #41: What is a Productized Service?

3 WAYS I CAN HELP YOU

Read time: 4 minutes.

Ninety percent of clients who come to me struggle with inconsistent income.

Why?

Two main reasons:
-> poor business models (monthly retainer) and
-> ineffective pricing strategies (hourly rates).

Monthly retainers and hourly rats are great for clients.

But not for you:

  • Difficult to scale: Retainers limit the number of clients you can serve.
  • Trading time for money: With hourly billing, your income is directly tied to the hours you work.
  • A constant need to prove yourself: You need to demonstrate your value every month to retain clients.

The solution: productized services.

By offering pre-defined packages with clear project timelines, you set clear expectations for what, when, and how deliverables are provided, in exchange for a set fee.

This also allows you to:

  • Improve planning and delivery
  • Forecast growth more accurately 
  • Effectively hire and delegate tasks
Below is a detailed breakdown of what a productized service is, examples of how they work, and the benefits they carry:


What is a Productized Service?

  • Taking Expertise and Packaging It: A productized service takes the skills, expertise, or knowledge of a service provider and transforms them into a well-defined package. Think of it like a product on a shelf rather than a custom-built solution each time.
  • Standardization is Key: Productized services have clearly outlined features, scope of work, pricing, and a repeatable process for delivery.
  • Targeted Solutions: Instead of being all things to all people, productized services focus on a specific problem for a specific type of client.

Examples of Productized Services

  • Web Design: A package for small businesses offering a basic website with 5 pages, contact form, and SEO setup.
  • Copywriting: A package for blog post creation, with options for different word count tiers.
  • Social Media Management: A monthly package including content creation, scheduling, and community engagement for a set number of platforms.
  • Financial Planning: A package for retirement planning aimed at a specific income bracket with defined deliverables.

Benefits of Productized Services

  • Scalability: Easier to replicate and serve more clients without reinventing the wheel each time.
  • Predictable Revenue: Fixed pricing and packages make income more predictable.
  • Increased Value Perception: Clients see clearer value in a packaged solution compared to hourly billing.
  • Streamlined Sales: Predefined packages simplify choices for clients, leading to faster sales cycles.
  • Work-Life Balance: Systematized processes free up time and mental energy for business owners.

Is Productization Right for You?

If you're a freelancer, consultant, or agency owner, consider these questions:

  • Do you consistently solve a similar problem for a specific type of client?
  • Are you tired of creating custom proposals every time?
  • Would you like to streamline your business and generate more predictable revenue?

If you answered yes to these, productizing your services could be a game-changer!

How to productize your own services?

1. Identify Your Ideal Offering

  • Analyze Your Expertise: What problems do you consistently solve for your clients? Where do you have the most success and experience?
  • Target Audience: Who specifically benefits from your services? Consider demographics, industry, and the pain points they face.
  • Demand: Is there a market for your potential productized service? Look for competitor offerings or talk to potential clients to assess interest.

2. Design Your Package

  • Scope: Define in detail what your package includes (and importantly, what it doesn't include). How many revisions, what type of communication, etc.
  • Deliverables: Be very specific about what the client will receive at the end (e.g., a 5-page website, three edited articles, a financial plan).
  • Timeline: Outline how long the process typically takes, providing a clear timeframe for expectations.

3. Determine Pricing

  • Value-Based: Don't just calculate time spent. What is the value the client gains from your service? Price based on solving their problem.
  • Tiers: Consider multiple packages (basic, premium, etc.) to offer choices at different investment levels.
  • Payment Structure: Will you charge a flat fee, require a deposit, or set up a recurring payment structure?

4. Refine Your Process

  • Systematize Delivery: Map out every step the client and you will take, from initial inquiry to final delivery.
  • Templates: Create templates for proposals, contracts, onboarding materials, and client communication to save time.
  • Tools: Consider project management and automation tools to streamline your workflow.

5. Market and Sell

  • Clear Messaging: Craft compelling website copy, sales pages, or brochures that clearly explain your packages and the value they offer.
  • Target your Ideal Client: Focus your marketing efforts on reaching the audience you have defined.
  • Case Studies and Testimonials: Show prospective clients the results you have achieved for others to build trust.

Additional Tips

  • Start Small: Don't feel pressured to productize everything initially. Start with one core service and build from there.
  • Feedback Loop: Gather feedback from early clients on their package experience to refine and improve as you go.
  • Iterative Process: Productization isn't a one-and-done deal. Be prepared to make adjustments based on market needs and your experience.

Need more guidance? Let me know what type of services you offer, and I can help you brainstorm some productization ideas!

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p.s are we connected on LinkedIn or Twitter?

...and whenever you're ready, here are a few ways I can help you. If you're still trying to figure things out, I'd recommend starting with an affordable course:

1. The World Domination Strategy Game: a comprehensive tool for online entrepreneurs designed to simplify the process of creating a business strategy. A distillation of the best coaching exercises derived from working with over 800 online entrepreneurs. It provides clear, step-by-step instructions across 14 modules, supplemented with 20+ videos, exercises, files, and templates. The game can be used individually or with a team. The users are given access to additional resources like 40 pages of instructions, assignments, techniques, motivation.
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2. The Marketing Agency Scaling Roadmap:Introducing: the 9 CRUCIAL categories and 27 power activities you need to focus on at each stage of growth: $5k-$25k/mo -> $25k-$50k/mo -> $50k-$100k+/mo. 5 Modules. 4 hours of ACTIONABLE content. Milk, honey, butterflies and rainbows and so much more...
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