How Productized Services Make Running Your Business Easier
One of the hottest trends going on right now in business is the concept of a productized service. If you haven't heard that phrase before, you will soon.
There are several trends happening right now that are contributing to this rise.
- Technology is becoming more and more specialized and it's becoming harder for staff to keep up.
- Business owners like the predictability of a service with clear expectations and clear pricing.
Service providers benefit as well because of a more predictable cashflow and an easier scaling process.
But, what is a productized service and what are some examples?
A productized service is a service with clear packaging and set expectations.
Unlike a traditional agency offering, the pricing of a productized service is based on the package instead of hourly billing. With a productized service offer, there aren't any back and forth proposals. The deal is offered by the provider and the entrepreneur either takes it or they don't.
Some productized services are a one shot deal but most are on a recurring monthly basis. In many cases, but not all, these prices are posted online and the service can be purchased immediately via credit card.
Some productized services are based on "x number of items" Example: Up to 10 fixes to your website for $75 a month, but if you want 15 items it's $99.
Some services are unlimited AKA the "Netflix model". I use this model for Mr. Leads Concierge, my unlimited done for you email marketing service for ActiveCampaign and Constant Contact customers.
The real difference between the agency model and a productized service is specialization. A limited number of platforms involved. Very specific skillsets. This makes it a lot easier for the service provider to train and maintain staff to leverage expertise.
You may be thinking that you don't need to use a productized service. Maybe you could do it yourself or have your assistant do it.
And maybe you could.
However, if you don't do it often and it's not part of what your business is about, would you be very good at it?
Would you enjoy it?
Would it be a good use of your valuable time?
On the other hand, if you find a productized service provider that does it all day every day, would they be good at it? Of course they would!
This type of arrangement is different than hiring a virtual assistant. A virtual assistant typically does a lot of different types of tasks but rarely gets the specialized knowledge that the productized service providers can offer.
Here are some of the many examples in the productized service space.
Design Pickle offers unlimited graphic design services on a subscription basis. They are one of the most well known productized service companies.
WP Curve is one of the first and one of the most successful companies offering productized WordPress updates. They became so successful that they got bought out by Go Daddy at the end of 2016.
Interestingly, after the buyout, a lot of other companies jumped in on the productized WordPress updates bandwagon. There are a lot of companies out there offering this service, and the one I currently recommend is Ripplepop.
SeOak offers a productized SEO package for Shopify stores.
Bench offers a productized bookkeeping service.
Copywriter Today is one of several companies offering productized writing services.
And of course a list like this wouldn't be complete without mentioning Mr. Leads Concierge, my productized done for you email marketing service for Constant Contact and ActiveCampaign customers.
Now that you know what a productized service is, how will you take advantage of it?
Are you going to hire one or more of these productized service companies? (pick me!)
Are you going to offer a productized service yourself?
Use this knowledge and grow your business in a way that runs cost effectively and crush your competition. Go for it!