In October last year I made the decision to focus any new internet marketing client work solely on the ski niche, an industry that I had no connections in but a lot of customer insight and passion having done a season myself. I went to the biggest UK ski trade show and picked up my first ski clients by selling SEO (it was a b2c show but I managed to b2b them!). After a few months I had got myself back into the situation where I had no more personal capacity to take on additional clients and no time to do any content marketing or outbound sales to pick up any more. I had hit an income and stress ceiling which I didn’t know how to get out of.
That was until I first heard about the concept of productizing services and I created my first product page with pricing table on snowbistro.com (now at products.snowbistro.com/range) My understanding of how to add value and how to scale businesses completely changed.
So what are productised services?
A productized services business is one that sells and packages up a service as a product with a standardized list of features, a fixed price and delivered by a set date. So why would you want to start a productized service?
Freelancing is not scalable as you have a fixed number of hours you are trading for income. The agency model scales but as a business model it kinda sucks as you end up competing with others through writing proposals where the majority lose and every new client has different expectations to manage. Competition with agencies is not inherently a bad thing, but when the market is saturated with generic design and marketing agencies (as is the case in my home city of Norwich, UK) chasing after the same pitches then it’s often a race to the bottom. As Peter Thiel stated on the Tim Ferriss podcast, competition is actually the opposite of being capitalistic; Google makes so much money because it dominates the search and online advertising market. Find your niche and dominate it.
This is the approach I’ve taken with the UK ski industry. Through content marketing for my productized service business snowbistro.com, I had become an authority in the ski trade and the obvious choice to go to for inbound marketing as was the only one with visible products; everyone else just stated on a services page that they can do SEO, content, social, blog etc but didn’t give any prices. By making the implicit explicit you can dominate the competition (especially in opaque industries such as SEO agencies).
Benefits of productizing your consultancy business
- No more clients from hell – as your product offering is fixed, so are expectations on both sides. The “client is always right relationship” becomes a true partnership where value is delivered to your customers.
- No more writing client proposals – you set out your offering with a buy button to purchase
- You can launch in a day – just put together a sales page and mail your list
- Easier to sell – by offering a set solution with specific deliverables there’s far less friction to win customers
- You get paid up front – this is what customers do – and you price on value (solving their problem) not cost. Plus a fixed price means no more clients trying to haggle or negotiate you down and no more chasing for payment.
- Make more money – your income is not linked to how many pitches you win or the number of hours you or your team have in a day
- Automate service delivery – products allow you to create standard operating procedures (SOPs) that can be delivered by others and improved upon with every new customer
- Automate your marketing – standardizing services into products enables you to conduct automated outbound sales emails to prospects.
- You’re building an income generating asset that you could sell – as delivery and customer acquisition can be systematized and automated the business doesn’t need you as owner to succeed.
28 examples of productized service businesses
- Superfast Business – productized coaching, website and traffic services
- WP Curve – ‘service as a service’ wordpress support
- Rocking Book Covers – book covers for authors
- Cafe Create – transparent and fixed priced creative design packages
- Draft Revise & Draft Coaching – monthly UX optimisation and coaching services
- CopyHackers – one-off CRO copywriting website review
- Business & Bootstrapping – lead generation about pages
- My Content Sherpa – monthly content marketing to grow your list
- Boombait – app store icons
- Black Light – monthly conversion rate optimisation
- Abroaders – travel hacking agency
- Brass Tacks – analytics reporting
- Bench – monthly bookeeping products
- Kudu – fixed price adwords products
- Restaurant Engine – web design & hosting as a service
- Website Rescues – CRO website redesign
- Kai Davis – SEO productized consulting
- Chalet Engine – web design & hosting for ski niche
- Undullify – unlimited monthly graphic design jobs
- 3 Wise Bears – accountancy as a service
- Wealth Enhancers – business & financial advice
- Dr Alexis Shields – online medical consultations
- GDPCIC – perfect bound book printing as a service
- Tourism Tiger – websites for tour operators
- Authority Engine – podcast editing as a service
- Landingpageinanday.com – a productized offering of Jarrod’s Cascade landing page framework
- Zenkeep – bookeeping as a service startup
- Koko Content – content marketing & promotion as a service
- Protect Your Passion – helping entrepreneurs build & legally protect their online businesses
How To PRODUCTIZE
Start by picking the one service that is a combination of most in demand by clients (their biggest problem), most profitable for you and the easiest to deliver. This will have the best chance of that over-used phrase product/market fit and you will likely need to iterate your products & packages several times with each potential customer interaction. I’ve even changed the sales page and items in the pricing table whilst on the phone to a prospective client, upping or reducing the price based on how the conversation was going!
I started by offering ski companies ski content marketing products as I thought this would be the easiest to deliver as I would just have to take the money and then commission out the work to writers and worst case I could write the content myself. However it was ski SEO products which I had the most traction with splitting up on-site and off-site work into three different products, two being one-off payments and the other a rolling monthly setup.
Back then there were simply buy now buttons in the pricing table which connected to paypal.
update – Productizing in 2016
A lot has changed in the two years since I first published this post. Since then I’ve double downed on my main business funnelengine.com which is based on clickfunnels where I create entire funnels from optin through to payment and upsells using stripe.
The main offering are the done for you funnel packages here and show below:
This has been my most successful business yet having sold over $50k of funnels and now generating $3k/m in affiliate income (read how I’m now focussing on an affiliate challenge in this post).
FREE productized services funnel TEMPLATE
I’m giving away the sales funnel I used that automatically converted visitors into buyers of these one-off packages and then upsold them into a monthly service.Claim your FREE Productize Funnel Template!
The funnel screenshots are below:
marketing channels for productized services
I’ve generated this revenue almost exclusively through content (inbound marketing) and content promotion however if your one off packages are priced high enough or have a monthly package to get at least $2k in lifetime customer value you can also do outbound. You can find prospects on LinkedIn or Twitter, putting their names and emails into a mass personalised email software such as Quickmail and then when you get a reply put these leads into your CRM and begin your sales process.
If you want help in productizing your services I recommend the excellent productize course by Brian CaselCheck Out The Productized Course