In the world of freelancing and consulting, there comes a time when the question arises, how to scale the business without doing all the work yourself? The answer may lie in the concept of productized services. This model has become the answer for those seeking predictable, scalable growth beyond the traditional billable hours model. This article will provide you with a comprehensive understanding of productized services and why it might be the perfect solution for scaling your business.
Who is Best Suited for Productized Services?
While productized services can be a great fit for many entrepreneurs, some are particularly well-positioned to start a productized service:
- Freelancers & Consultants: For those who have been working solo in areas like website design, copywriting, marketing, engineering, or design, productization could be the perfect next step.
- Agencies: The agency model can grow into a good business but often faces unique challenges when it comes to scaling. This makes the productized services model particularly attractive for agencies.
- Software Companies: If you’ve developed software, you can create a productized service of concierge onboarding for the software.
- Startups: For startups, especially bootstrapped ones, productized services can be one of the fastest ways to validate a new business idea, grow revenue, and self-fund.
- Those transitioning from employment: Those with in-house experience at a company could be at an advantage. You have insider knowledge about the types of needs that companies typically pay to have solved.
The Distinct Advantages of Owning a Productized Service
Owning a productized service comes with several unique benefits:
- Done for you: With a productized service, you're providing a service that saves the client time.
- Low cancellations: A productized service mitigates the most common reasons for cancellation.
- Pre-validated idea: A productized service is often created out of a service that you’ve delivered before, giving you a strong sense of validation right from the start.
- Revenue comes easier and faster: A productized service helps you sustain your runway longer by getting your first customer revenue in the door faster and easier.
Debunking Myths About Productized Services
There are several misconceptions about productized services that need to be addressed:
- People “buy now” off your website: While your website may display pricing and offer a "buy now" option, most customers need to have a conversation with someone before committing to buy.
- A productized service can’t work without “you”: It is possible to give clients the same sense of trust in working with you, without you personally being involved.
- There’s no room for custom work in a productized service: The work delivered can be just as high-quality and custom-tailored as if they had hired you directly.
Identifying Your Productized Service Idea
Identifying the right productized service idea is a critical step in your entrepreneurial journey. It's not just about finding a productized service; it's about finding the one that you're uniquely positioned to create and grow.
Assessing Your Unique Advantages
Start by recognizing your unique advantages. Consider your industry experience, the communities you're part of, your insider knowledge, and your experiences or interests. All of these can provide valuable insights into potential service ideas.
Identifying Your Ideal Customers
Think about the customers you enjoy working with or have established relationships with. If you can envision finding 100 more people like your favorite customers, you're on the right path to solidifying a business idea.
Conceptualizing Your Product Idea
To conceptualize your productized service idea, imagine your dream client approaching you with a business problem. Consider what your ideal solution package to that problem would be, and that gives you a foundation for your productized service offer.
Validating Your Productized Service Idea
Once you've conceptualized your service, the next step is validating your idea. Validation should occur in stages and consider the following aspects:
- Customer Validation: Ensure you've chosen the right customer and market.
- Problem Validation: Confirm that you've identified a problem your customer is willing to pay to solve.
- Solution Validation: Ascertain that you've formulated an effective solution to the problem.
- Business Model Validation: Make sure your pricing structure, cost-structure and team setup align with your product idea.
- Marketing Strategy Validation: Guarantee that you can reach enough customers to make your product idea viable.
Business Models for Productized Services
Your productized service can follow one of six primary business models, each with its own unique characteristics and considerations.
- One-time (repeatable) projects: This model involves a one-time fee for a service delivered once. The service can be repeatable, with the customer repurchasing additional or repeat deliverables.
- Recurring services: This model provides recurring value through a subscription-based service, solving a recurring problem for the customer.
- “Unlimited” services: This model offers an “unlimited amount” of a specific service for a flat monthly rate.
- Coaching or done-with-you services: This model combines the productized service model with coaching, where both you and the client are involved in the work.
- Software with a service (SWaS): This model builds a service on top of a software product, either one you’ve created or an existing third-party software product.
- Productized consulting: This model allows you to remain solo or maintain a small business while still using the productized service model to streamline your consulting.
Inspiring Examples of Productized Services
Exploring examples of successful productized services can provide valuable insights and inspiration.
One-time (repeatable) projects:
- Testimonial Hero: Offers videography services for B2B companies.
- Case Study Buddy: Helps businesses promote themselves through case studies.
Recurring services:
- Audience Ops: Provides done-for-you content creation services.
- Bean Ninjas: Handles bookkeeping needs for online businesses.
“Unlimited” services:
- Design Pickle: Offers unlimited design requests and revisions.
- Video Husky: Provides unlimited video editing services.
Coaching or done-with-you services:
- Boss as a Service: Keeps you productive and accountable.
- GrowthMentor: Provides personalized advice from vetted startup and marketing mentors.
Software with a service:
- ProcessKit Implementer: Offers done-with-you implementation for process-driven project management software.
- Bench: Combines online bookkeeping with real human support.
Productized consulting:
- Punchline Conversion Copywriting: Offers funny copy that converts.
- UI Breakfast: Provides UI/UX and product strategy for SaaS companies.
As you explore potential service ideas, remember to focus on your unique advantages and the needs of your ideal customers. This will help ensure that you not only develop a successful productized service but also one that you're passionate about and well-suited to deliver.
