What Are Productized Services? Strategy and Examples

Service companies are wonderful for producing money movement, however they are often tough to scale and require in depth shopper communication. 

Productized companies are a preferred different to the standard service enterprise mannequin as they are usually extra worthwhile and simpler to function.

This publish explains the advantages of productized companies, gives some examples of what a productized service is, and provides you step-by-step directions on how you can create your individual productized companies. 

What’s a Productized Service?

Service companies often contain exchanging labor and experience for cash. Companies, freelancers, and even legal professionals and plumbers are all thought of service suppliers as a result of they alternate time, labor, and experience for cash.

Most conventional service companies work with the shopper to find out the undertaking scope after which draw up a proposal for the shopper. 

Productized companies are predefined packages created by the service supplier that state what work they are going to ship and when. From the client’s perspective, they’re shopping for the tip consequence (e.g., the finished web site) they need somewhat than paying a service supplier to work on a customized undertaking. 

Right here’s an actual instance of a productized service. This freelancer is providing a four-page, responsive web site with a responsive design for $450.   

Beneath an instance of a freelancer that makes use of the service primarily based enterprise mannequin. 

Right here’s an instance of a freelancer utilizing the standard service enterprise mannequin. Purchasers can inform him what they need, he’ll draw up a proposal, they’ll negotiate, after which he’ll cost $100 per hour to work on the undertaking.  

This extra friction and work required from the shopper tends to harm conversions. 

What Are The Advantages of a Productized Service? 

Productized companies could appear similar to the standard service enterprise mannequin, however the delicate variations can impression your online business’s profitability and your stress stage.

Listed here are a number of of the highest advantages of a productized service.  

Shut Purchasers Sooner

From a shopper’s perspective, it’s a lot simpler and sooner to buy a service (web site, search engine optimisation audit, and so on.) with one click on somewhat than reaching out to a service supplier (freelancer, company, and so on.), pitching them the undertaking particulars after which ready for a pricing quote. 

Consequently, it’s simpler so that you can begin the undertaking and requires much less shopper communication. 

Keep away from Mission Scope Creep

Many consumers will ask for extra revisions and favors throughout the undertaking if it isn’t clearly acknowledged beforehand. Consequently, the service supplier typically works for hours with out pay, or a shopper dispute arises.

As every proposal is customized in a conventional service enterprise, it’s pretty frequent that service suppliers neglect to stipulate gadgets that aren’t included within the deliverables.

Alternatively, a productized service is way more clearly outlined, stopping awkward conditions.

In case you don’t specify forward of time what’s and isn’t included within the undertaking, you could find yourself working for a lot of hours with out pay. Or, you’ll have a clumsy scenario the place the shopper is disgruntled as they consider particular issues have been included within the authentic quote.

With a productized service, all of those particulars are specified within the bundle forward of time, which helps you keep away from undertaking scope creep.

Scalability

If every undertaking is custom-made for a special shopper, you’ll need to create a brand new workflow for every undertaking, which takes extra effort and time.

For instance, for those who’re designing an internet site on WordPress for one shopper, Squarespace for one more shopper, and GoDaddy for one more shopper, you’ll want to determine a special workflow for every.

Even in case you have the ability set to construct an internet site on every platform, you in all probability gained’t navigate it as shortly as for those who solely construct web sites utilizing a single theme on a single platform.

It’s additionally a lot simpler to scale a service enterprise in case you have a documented, repeatable workflow that staff can comply with.  

Earn Extra Cash

Productized companies make it simple for shoppers to make a purchase order immediately. Consequently, you’ll in all probability make extra gross sales as a result of many purchasers will purchase on impulse. 

Along with incomes extra whole gross sales, productized companies additionally will let you earn extra money for each hour labored. It’s because every undertaking you full would be the similar (somewhat than customized), permitting you to create a normal workflow.

Upon getting a normal workflow, you’ll full the initiatives a lot sooner, permitting you to cut back the time you spend engaged on a undertaking whereas nonetheless incomes the identical quantity per undertaking. 

Moreover, you’ll discover that shoppers are way more inclined to pay a big lump sum of cash for a delivered product (like a accomplished web site) than a excessive hourly charge.

For instance, paying $5,000 for an internet site could not appear unreasonable, although paying $1,000 per hour for an online developer could appear excessive – even when it solely takes 5 hours to finish the web site.  

Examples of Productized Providers

Listed here are just some examples of conventional service companies that have been remodeled into productized service companies.

Graphic Design Providers

DesignJoy is a productized graphic design service that generates over $1 million yearly and is operated by a single particular person, Brett Williams.

To offer you an outline of the way it works, clients subscribe to his service after which can request a particular design. 

They obtain the design in about two enterprise days, after which he’ll make any requested revisions. 

The fundamental subscription is almost $5,000 per 30 days, and the professional subscription is almost $8,000 per 30 days.  

The membership pricing mannequin permits Brett to earn recurring income, which provides stability to his enterprise and makes it extra worthwhile generally.

Moreover, as a result of folks can cancel at any time, they’re extra seemingly to enroll than in the event that they needed to signal a six or twelve month contract.

Video Enhancing

Video editors can create productized companies by providing a set variety of movies edited in a particular type or to a particular size. 

For instance, this short form video editor provides three totally different packages of 10, 20, and 30 quick type content material edits per 30 days. 

Clients should purchase the service with one click on, making it simple for the company to earn gross sales with out conducting a discovery name, drafting a proposal, and negotiating with the prospect. 

search engine optimisation Audits and Providers

search engine optimisation is straightforward to bundle as a productized service, as you possibly can supply audits, content material, and backlinks as merchandise. 

This search engine optimisation advisor even broke down audits into totally different sections that shoppers can order individually. The shopper can see precisely what they’ll obtain they usually can order it with only one click on, making it quick and simple to unravel that drawback and verify it off the shopper’s to-do listing.     

Right here’s an instance of a productized hyperlink constructing service. Every pricing tier varies relying on the variety of hyperlinks per 30 days, they usually specify the authority of the hyperlinks supplied in addition to further companies included. 

Web site Design Providers

Web site design companies could be productized by platform, the variety of pages on an internet site, plugins included, revisions, and design.

Right here’s an instance of a productized website design package:

Writing Providers

Writers can productize their companies by providing particular content material inside a set time-frame. You’ll be able to specify the phrase rely, revision requests, and extra add-ons like graphics, search engine optimisation key phrase optimization, and extra.

Right here’s an instance of a ghostwriting service enterprise. Clients can specify if they need a junior, senior, or premium author, after which they’ll choose the bundle with their desired phrase rely and picture rely.

Clients then have the choice to pay a set price or they’ll select the month-to-month recurring price.

Authorized Providers

Even legal professionals can supply productized companies. 

For instance, this divorce law firm provides three totally different productized uncontested divorce companies, they usually worth every bundle relying on supply timeline and the kind of divorce. 

As divorces are sometimes lengthy and complex processes, and clients getting a divorce typically need it executed as shortly, with the ability to buy the divorce for one set price with an finish timeline can considerably enhance gross sales. 

Actual Property MLS Providers

Actual property brokers may also supply productized MLS companies. 

For instance, this real estate group provides 4 packages that owners can order with one click on. The packages embody the place they’ll listing the house, how shortly it will likely be listed, and advertising and marketing supplies like flyers. 

The upper priced packages supply extra premium add-ons, like a web based success equipment, an indication panel, a realtor lock field, and extra.

How To Create A Productized Service

Right here’s a tactical, step-by-step information to creating productized companies. 

Step 1: Outline The Deliverables

To determine what companies to supply, take a look at your most in-demand companies you at present supply and consider which of them you get pleasure from executing probably the most. 

Subsequent, outline what’s and isn’t included in your productized service. 

For instance, for those who supply writing companies and resolve you wish to focus on social media ghostwriting, outline:

• Which platforms you’ll write for (LinkedIn, X, Fb, and so on.)
• The kind of social media publish (thread, quick Tweet, and so on.)
• What number of social media posts per 30 days
• Revision requests
• Graphics included
• Calls/consultations
• Turnaround time

The extra particulars you embody in your packages, the extra seemingly persons are to click on “order now” and convert as a result of they gained’t have unanswered questions.

Moreover, setting shopper expectations at first will keep away from miscommunication that may result in an sad buyer or scope creep.

Right here’s a great example of nicely outlined deliverables:

Step 2: Pricing Your Packages

Providing two or three totally different packages may help enhance conversions and generate extra income as some folks won’t wish to pay an extremely premium worth level, whereas others could also be prepared to pay extra for a extra unique service.

There are a number of other ways you possibly can create totally different pricing packages:

• Turnaround instances (e.g., 2 day supply versus 7 day supply)
• Quantity (e.g., 5 posts versus 10 posts)
• Add ons (e.g., together with hashtag analysis, graphics, and so on.)

Some service companies additionally supply one on one calls or help, however remember the fact that the advantage of productized companies is that they reduce shopper communication, permitting you to scale your online business with much less headache. Providing hands-on shopper communication can create a bottleneck in your online business and strain you to ship greater than what’s included within the preliminary bundle. 

Another choice some productized service suppliers supply is a variation of high quality (e.g., junior versus senior author). 

The issue with providing varied ranges of high quality is that decrease high quality work can result in extra buyer complaints if it doesn’t meet their expectations. Moreover, the kind of clients who’re desirous about decrease high quality work are usually decrease high quality shoppers and are sometimes excessive upkeep.

When you’ve outlined your totally different pricing packages, supply a membership or subscription-based pricing possibility, as this can provide help to earn recurring income and finally make your online business extra worthwhile.

You’ll be able to permit folks to cancel at any time, however they’re more likely to stay sticky clients if it requires effort to cancel.

To incentivize folks to pick out a recurring subscription, supply a reduction. 

If in case you have sufficient demand, you would completely supply subscription billing and take away the choice to put a single order.  

Step 3: Designing Your Touchdown Web page

You don’t want a full web site to promote a productized service – a easy touchdown web page is enough.

You’ll be able to both construct the touchdown web page your self or rent somebody on Upwork or Fiverr:  

As you’re constructing your touchdown web page, right here’s what it is advisable embody:

1. How It Works: Clarify what you supply and the way the supply course of works. For instance, folks could not perceive how the productized course of works, so clarify every step, what’s required from them, and once they’ll obtain their deliverables. Right here’s an awesome instance of a “the way it works” part:

2. Shopper Testimonials: Embody examples of your work and shopper testimonials to enhance credibility. In case you don’t have any testimonials, supply to do work without spending a dime for a number of influencers in your area of interest in alternate for a testimonial.

3. Key Advantages/Differenatiors: Together with a bit in your service’s advantages and key differentiators (why your service is totally different/higher than rivals) may also assist enhance conversions.

4. Your Pricing: Embody the pricing packages you outlined above and outline precisely what’s and isn’t included in every. Use a big “order now” button for the CTA, because the phrase “order now” (versus “get began”) reinforces the profit that the shopper can verify this off their to-do listing.

It is a great example of a nicely designed pricing web page because it contains an “order now” button and an possibility for dwell chat (a low friction, quick response communication methodology) in case they’ve any further questions: 

Step 4: Create an Order and Onboarding Course of

A key advantage of productized companies is that shoppers obtain on the spot gratification once they click on “order now” and might verify that merchandise off their to-do listing. This on the spot gratification will increase conversion charges and finally makes your online business extra worthwhile.

Subsequently, an extended and complex order course of can damage your conversion charge. 

To optimize your order course of, make the fee course of simple. Provide a easy fee methodology folks belief, like Stripe or Hyperlink. 

For instance, you’ll see this after clicking DesignJoy’s “Get Began” button.

After your clients pay, the following web page ought to take them to a shopper consumption type, although it’s a good suggestion to additionally ship an automatic welcome e mail that features the consumption type. 

Notice: If in case you have shoppers fill out an consumption type earlier than paying, you would lose conversions. All the time accumulate fee first.

You’ll be able to create a shopper consumption type utilizing Typeform, and make it so simple as potential. In case your type is just too lengthy or advanced, folks gained’t fill it out after which you possibly can’t begin the undertaking. In case you can’t begin the undertaking, your shoppers will seemingly request a refund.

One other professional tip is to ship them an automatic onboarding e mail telling them what they’ll anticipate.

Over time, you possibly can compile a listing of ceaselessly requested questions and embody them in that e mail to attenuate help.

Step 5: Create Documented Processes 

As you start fulfilling orders, doc every step of the method. Documentation makes it simpler so that you can ship greater high quality work as you’ll you should definitely by no means miss any steps and also you’ll refine the method. 

Processes additionally make it simpler so that you can grow to be extra environment friendly and spend much less time on every undertaking. 

Nonetheless, the largest profit is that clear documentation will will let you finally scale your workforce and rent others to do the work with out sacrificing high quality.

For instance, for those who’re a YouTube scriptwriter, right here’s an instance of what a documented writing course of may appear like: 

For every step of the method, you would additionally create checklists. For instance, you would have a guidelines for the hook to make sure that anybody you give this temporary to (together with your self) all the time delivers the identical high quality work.

These templates enhance the consistency of your work as you construct a workforce, and at the same time as a solopreneur, it helps you get the work executed in much less time. 

One other advantage of documented processes is that you could publish these processes as free sources to construct an viewers or promote them as programs to earn extra revenue.

Step 6: Construct an Viewers

A key advantage of productized companies is that it’s tremendous simple to put an order, so it’s good for changing new clients. 

Nonetheless, which means new folks want to find you and your companies.

We’ve a separate useful resource on the step-by-step technique of building an audience, however listed here are a number of professional ideas:

1. Choose one platform, corresponding to Twitter, LinkedIn, or YouTube. You’ll construct an viewers sooner by posting a excessive quantity of high quality content material on one platform somewhat than posting sporadically throughout a number of platforms.
2. Submit content material (associated to your service/area of interest) persistently. Publish day by day for those who select a social media platform, or as soon as per week for those who publish lengthy type content material, like YouTube or a weblog.
3. Funnel folks to an e mail listing. The draw back of social media and different content material platforms is that you just don’t truly personal your viewers. Construct an e mail listing as a way to guarantee they see each bit of content material you publish. 
4. Collaborate with different trade consultants. You seemingly gained’t earn many followers in your first few months of posting content material, so interview consultants and incorporate them into your content material to amplify promotion.

Upon getting a documented course of, you possibly can scale your companies. 

Get Extra Assist Constructing And Promoting Your Productized Providers 

These are all the fundamental steps to making a productized service, however if you’d like extra assist from a group of entrepreneurs, take into account becoming a member of the Copyblogger Academy. 

Run by two seven determine entrepreneurs, Charles Miller and Tim Stoddart, the Copyblogger Academy offers members entry to 9 programs and a group of like minded friends. 

Members can ask questions in the neighborhood discussion board, attend accountability periods, and revel in entry to unique interview content material from the world’s high entrepreneurs. 

You’ll be able to be part of the Copyblogger Academy in the present day risk-free as we’ll offer you a full refund within the first 30 days for those who aren’t 100% happy.