A quick note: There are 100 ways to define anything, and this is just my personal take on Productized Services.
Since starting ProductizedHQ, I've gotten deeper into the world of productized services. Part of the decision making here involves denying certain services entry to our listings.
Generally, our TLDR acceptance criteria is:
- Price Listed Transparently
- Subscription Based
- Services business (Not a pure software tool)
What Does It Mean to "Productize" a Service?
In its broadest sense, I see a productized service as one that has been commoditized and set at a standard price. It's a way of packaging and selling a service like a product.
See the following conversations:
Non Productized Service: "I need a website built. How much will it cost?" "It depends on your requirements. Let's set up a call to discuss."
Productized Agency: "I need a website built. How much will it cost?" "Our website package is $2,500, including 5 pages and SEO setup. Would you like to get started?"
Two Main Types: One-Time and Subscription-Based
Assuming a service is productized per the above, in my experience, productized agencies generally fall into two main categories:
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One-Time Services: These are reminiscent of project-based payments. For example, if you want to get your roof shingled, you're paying a standardized price for a one-time service.
I've seen many website launch services use this model, offering to launch your site on a set number of platforms for a fixed fee. While this counts as a productized service, especially if parts of the process are automated, it's not my preferred approach.
Some examples, MVP-as-a-service: Refined.so and Uniqueside.io
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Subscription-Based Services: This is the model I appreciate most. With a subscription-based productized service, you pay a set monthly cost for an ongoing service. Apartment cleaning for $200 per month would be an example.
Or getting something like 15-20 designs per month with DesignBalm for under $200.
What I love about this model is that it encourages long-term thinking from both parties. The agency providing the service is incentivized to deliver quality work to keep you as a customer.
The Goal: Niche Down and Standardize
I believe the ultimate goal with productized services is to niche down until you can deliver a higher quality service faster than any of your competitors - Standardizing procedures and leveraging software assistance to optimize the process.
To conceptualize this, think about the difference between an artisan crafting handbags and a factory mass-producing handbag clasps. The artisan makes each bag by hand, taking a week per unique creation. (Typical agency) In contrast, the factory can churn out 10,000 clasps per week, potentially at an even higher quality than the handmade pieces.
Productized services present a similar opportunity. By allowing experts to standardize, streamline, and scale their knowledge, you can deliver better results to a much larger customer base. It's a unique model that combines the power of systematization with the finishing touches of expert guidance.
The Bottom Line of Productized Services
At the end of the day, my take is that productized services are all about creating repeatable, scalable processes that can be easily marketed and sold.
Whether you opt for a one-time or subscription-based model, the key is to package your expertise in a way that delivers consistent value to your customers.
As someone who's working to build a business around productized services, I can attest to the benefits: streamlined requests and no Zoom meetings. If you're looking to take your business to the next level, productization is definitely worth exploring.
How to Transition to a Productized Agency Model
One missing element from the original discussion is how traditional agencies can make the shift to a productized model. This transition typically involves:
- Identifying your most profitable and repeatable services - Look at your past projects and identify patterns where you delivered consistent value
- Creating standardized packages - Define clear deliverables, timelines, and pricing
- Developing systems and processes - Document every step of service delivery to make it repeatable
- Training your team - Ensure everyone understands the standardized approach
- Gradually shifting your marketing - Move from custom quotes to transparent pricing models
Benefits for Clients
While we've discussed the advantages for service providers, clients also gain significant benefits from the productized model:
- Predictable costs - No surprise invoices or scope creep
- Faster delivery - Standardized processes mean quicker turnaround times
- Consistent quality - Refined systems lead to reliable results
- Easier budgeting - Especially with subscription models, clients can plan their expenses
- No lengthy sales process - Clients know exactly what they're getting without multiple discovery calls
Measuring Success in Your Productized Agency
To ensure your productized service is thriving, focus on these key metrics:
- Customer retention rate - Especially critical for subscription models
- Delivery time - How quickly can you complete the standardized service?
- Customer satisfaction - Are clients happy with the standardized approach?
- Profit margins - Are you maintaining healthy margins with your fixed pricing?
- Scalability - How many clients can you serve without adding resources?
Looking to explore more productized service examples or list your own? Visit ProductizedHQ to browse our curated directory of transparent, subscription-based service businesses.