Productizing a service means packaging it like a product. The buyer knows exactly what they’re getting with a productized service because the features and results are clearly defined. The price is set. There’s no ambiguity around what is or isn’t included.
Unlike custom services, which can be more difficult to evaluate, ready-made productized services are easy to understand and purchase.
Let’s take a look at a few of the main benefits of turning a service into a product.
Clear project scope
A productized service has a clear plan. The output is consistent, which eliminates scope creep and clarifies expectations for all individuals involved. Clients know what to expect from the start and the results are tangible and consistent. Offering a “done-for-you” solution simplifies the customer journey and makes it easier for them to purchase. This means you spend less time fielding questions from clients and more time focusing on revenue-generating work.
With set pricing for a productized service, there are no surprises or hidden costs for clients. They know exactly what they’ll pay from the start and they feel secure knowing their cost is the same as everyone else (i.e. they’re not getting ripped off). It’s easier for them to come to a buying decision faster because the expectations are straightforward. Even more, a pre-packaged project is easier to sell, since you’re marketing essentially the same thing over and over again. There are no customizations, no hassle with pricing negotiations, and no proposals. Either the client buys or they don’t.
A consistent scope for every project results in a similar process. The fundamental steps you take with one client are the same that you take with another. Each project follows the same formula: identical onboarding, deadlines, and output. It’s not a cookie-cutter approach, but it does allow for more streamlined operating processes and you can iterate faster. Using the same procedures again and again helps you recognize places where you could improve, meaning you get better and faster each time. You learn how to optimize your time for efficiency.
When a service is productized, it’s easier to automate and outsource the work. Your systems are smoother, which helps you grow with ease. You can expand your team, or outsource the work to a third party, and get new people up-to-speed quickly. Productizing establishes a scalable business model that frees you up to expand your client base and operations.
A productized service provides a more predictable income for your business. It’s easier to project sales and cash flow, and the revenue comes faster. Productizing simplifies the payment process. No hourly rates or invoices needed. It leads to lower cancelations, more satisfied clients, and a steadier income.
While productizing may not make sense for every business, it can be a successful strategy in a variety of industries — including creative, financial, marketing, writing, coaching, website services, and more. Agencies and freelancers who productize their services find it can help them make the most of their time and assist them in scaling without the usual growing pains.