What Are Productized Services? Strategy And Examples

Service businesses are excellent for generating cash flow, but they can be difficult to scale and require extensive client communication. 

Productized services are a popular alternative to the traditional service business model as they tend to be more profitable and easier to operate.

This post explains the benefits of productized services, provides some examples of what a productized service is, and gives you step-by-step instructions on how to create your own productized services. 

What is a Productized Service?

Service businesses usually involve exchanging labor and expertise for money. Agencies, freelancers, and even lawyers and plumbers are all considered service providers because they exchange time, labor, and expertise for money.

Most traditional service businesses work with the client to determine the project scope and then draw up a proposal for the client. 

Productized services are predefined packages created by the service provider that state what work they will deliver and when. From the customer’s perspective, they are buying the end result (e.g., the completed website) they want rather than paying a service provider to work on a custom project. 

Here’s a real example of a productized service. This freelancer is offering a four-page, responsive website with a responsive design for $450.   

Below an example of a freelancer that uses the service based business model. 

Here’s an example of a freelancer using the traditional service business model. Clients can tell him what they want, he’ll draw up a proposal, they’ll negotiate, and then he’ll charge $100 per hour to work on the project.  

This additional friction and work required from the client tends to hurt conversions. 

What Are The Benefits of a Productized Service? 

Productized services may seem very similar to the traditional service business model, but the subtle differences can impact your business’s profitability and your stress level.

Here are a few of the top benefits of a productized service.  

Close Clients Faster

From a client’s perspective, it’s much easier and faster to purchase a service (website, SEO audit, etc.) with one click rather than reaching out to a service provider (freelancer, agency, etc.), pitching them the project details and then waiting for a pricing quote. 

As a result, it’s easier for you to start the project and requires less client communication. 

Avoid Project Scope Creep

Many clients will ask for additional revisions and favors during the project if it isn’t clearly stated beforehand. As a result, the service provider often works for hours without pay, or a client dispute arises.

As each proposal is custom in a traditional service business, it’s fairly common that service providers forget to outline items that are not included in the deliverables.

On the other hand, a productized service is much more clearly defined, preventing awkward situations.

If you don’t specify ahead of time what is and isn’t included in the project, you may end up working for many hours without pay. Or, you may have an awkward situation where the client is disgruntled as they believe specific things were included in the original quote.

With a productized service, all of these details are specified in the package ahead of time, which helps you avoid project scope creep.

Scalability

If each project is customized for a different client, you’ll have to create a new workflow for each project, which takes more time and effort.

For example, if you’re designing a website on WordPress for one client, Squarespace for another client, and GoDaddy for another client, you’ll need to figure out a different workflow for each.

Even if you have the skill set to build a website on each platform, you probably won’t navigate it as quickly as if you only build websites using a single theme on a single platform.

It’s also much easier to scale a service business if you have a documented, repeatable workflow that employees can follow.  

Earn More Money

Productized services make it easy for clients to make a purchase instantly. As a result, you’ll probably make more sales because many customers will buy on impulse. 

In addition to earning more total sales, productized services also allow you to earn more money for every hour worked. This is because each project you complete will be the same (rather than custom), allowing you to create a standard workflow.

Once you have a standard workflow, you’ll complete the projects much faster, allowing you to reduce the time you spend working on a project while still earning the same amount per project. 

Additionally, you’ll find that clients are much more inclined to pay a large lump sum of money for a delivered product (like a completed website) than a high hourly rate.

For example, paying $5,000 for a website may not seem unreasonable, though paying $1,000 per hour for a web developer may seem high – even if it only takes five hours to complete the website.  

Examples of Productized Services

Here are just a few examples of traditional service businesses that were transformed into productized service businesses.

Graphic Design Services

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

To give you an overview of how it works, customers subscribe to his service and then can request a specific design. 

They receive the design in about two business days, and then he’ll make any requested revisions. 

The basic subscription is nearly $5,000 per month, and the pro subscription is nearly $8,000 per month.  

The membership pricing model allows Brett to earn recurring revenue, which adds stability to his business and makes it more profitable in general.

Additionally, because people can cancel at any time, they’re more likely to sign up than if they had to sign a six or twelve month contract.

Video Editing

Video editors can create productized services by offering a set number of videos edited in a specific style or to a specific length. 

For example, this short form video editor offers three different packages of 10, 20, and 30 short form content edits per month. 

Customers can purchase the service with one click, making it easy for the agency to earn sales without conducting a discovery call, drafting a proposal, and negotiating with the prospect. 

SEO Audits and Services

SEO is easy to package as a productized service, as you can offer audits, content, and backlinks as products. 

This SEO consultant even broke down audits into different sections that clients can order individually. The client can see exactly what they’ll receive and they can order it with just one click, making it fast and easy to solve that problem and check it off the client’s to-do list.     

Here’s an example of a productized link building service. Each pricing tier varies depending on the number of links per month, and they specify the authority of the links provided as well as additional services included. 

Website Design Services

Website design services can be productized by platform, the number of pages on a website, plugins included, revisions, and design.

Here’s an example of a productized website design package:

Writing Services

Writers can productize their services by offering specific content within a set time frame. You can specify the word count, revision requests, and additional add-ons like graphics, SEO keyword optimization, and more.

Here’s an example of a ghostwriting service business. Customers can specify if they want a junior, senior, or premium writer, and then they can select the package with their desired word count and photo count.

Customers then have the option to pay a set fee or they can choose the monthly recurring fee.

Legal Services

Even lawyers can offer productized services. 

For example, this divorce law firm offers three different productized uncontested divorce services, and they price each package depending on delivery timeline and the type of divorce. 

As divorces are often long and complicated processes, and customers getting a divorce often want it done as quickly, being able to purchase the divorce for one set fee with an end timeline can significantly increase sales. 

Real Estate MLS Services

Real estate agents can also offer productized MLS services. 

For example, this real estate group offers four packages that homeowners can order with one click. The packages include where they’ll list the home, how quickly it will be listed, and marketing materials like flyers. 

The higher priced packages offer more premium add-ons, like an online success kit, a sign panel, a realtor lock box, and more.

How To Create A Productized Service

Here’s a tactical, step-by-step guide to creating productized services. 

Step 1: Define The Deliverables

To figure out what services to offer, look at your most in-demand services you currently offer and evaluate which ones you enjoy executing the most. 

Next, define what is and isn’t included in your productized service. 

For example, if you offer writing services and decide you want to specialize in social media ghostwriting, define:

• Which platforms you’ll write for (LinkedIn, X, Facebook, etc.)
• The type of social media post (thread, short Tweet, etc.)
• How many social media posts per month
• Revision requests
• Graphics included
• Calls/consultations
• Turnaround time

The more details you include in your packages, the more likely people are to click “order now” and convert because they won’t have unanswered questions.

Additionally, setting client expectations at the beginning will avoid miscommunication that can lead to an unhappy customer or scope creep.

Here’s a great example of well defined deliverables:

Step 2: Pricing Your Packages

Offering two or three different packages can help increase conversions and generate more revenue as some people might not want to pay an ultra premium price point, whereas others may be willing to pay more for a more exclusive service.

There are a few different ways you can create different pricing packages:

• Turnaround times (e.g., 2 day delivery versus 7 day delivery)
• Volume (e.g., 5 posts versus 10 posts)
• Add ons (e.g., including hashtag research, graphics, etc.)

Some service businesses also offer one on one calls or support, but keep in mind that the benefit of productized services is that they minimize client communication, allowing you to scale your business with less headache. Offering hands-on client communication can create a bottleneck in your business and pressure you to deliver more than what is included in the initial package. 

Another option some productized service providers offer is a variation of quality (e.g., junior versus senior writer). 

The problem with offering various levels of quality is that lower quality work can lead to more customer complaints if it doesn’t meet their expectations. Additionally, the type of customers who are interested in lower quality work tend to be lower quality clients and are often high maintenance.

Once you’ve defined your different pricing packages, offer a membership or subscription-based pricing option, as this will help you earn recurring revenue and ultimately make your business more profitable.

You can allow people to cancel at any time, but they’re much more likely to remain sticky customers if it requires effort to cancel.

To incentivize people to select a recurring subscription, offer a discount. 

If you have enough demand, you could exclusively offer subscription billing and remove the option to place a single order.  

Step 3: Designing Your Landing Page

You don’t need a full website to sell a productized service – a simple landing page is sufficient.

You can either build the landing page yourself or hire someone on Upwork or Fiverr:  

As you’re building your landing page, here’s what you need to include:

1. How It Works: Explain what you offer and how the delivery process works. For example, people may not understand how the productized process works, so explain each step, what is required from them, and when they’ll receive their deliverables. Here’s a great example of a “how it works” section:

2. Client Testimonials: Include examples of your work and client testimonials to improve credibility. If you don’t have any testimonials, offer to do work for free for a few influencers in your niche in exchange for a testimonial.

3. Key Benefits/Differenatiors: Including a section on your service’s benefits and key differentiators (why your service is different/better than competitors) can also help increase conversions.

4. Your Pricing: Include the pricing packages you defined above and define exactly what is and is not included in each. Use a large “order now” button for the CTA, as the phrase “order now” (versus “get started”) reinforces the benefit that the client can check this off their to-do list.

This is a great example of a well designed pricing page as it includes an “order now” button and an option for live chat (a low friction, fast response communication method) in case they have any additional questions: 

Step 4: Create an Order and Onboarding Process

A key benefit of productized services is that clients receive instant gratification when they click “order now” and can check that item off their to-do list. This instant gratification increases conversion rates and ultimately makes your business more profitable.

Therefore, a long and complicated order process can hurt your conversion rate. 

To optimize your order process, make the payment process easy. Offer a simple payment method people trust, like Stripe or Link. 

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

After your customers pay, the next page should take them to a client intake form, though it’s a good idea to also send an automated welcome email that includes the intake form. 

Note: If you have clients fill out an intake form before paying, you could lose conversions. Always collect payment first.

You can create a client intake form using Typeform, and make it as simple as possible. If your form is too long or complex, people won’t fill it out and then you can’t start the project. If you can’t start the project, your clients will likely request a refund.

Another pro tip is to send them an automated onboarding email telling them what they can expect.

Over time, you can compile a list of frequently asked questions and include them in that email to minimize support.

Step 5: Create Documented Processes 

As you begin fulfilling orders, document each step of the process. Documentation makes it easier for you to deliver higher quality work as you’ll be sure to never miss any steps and you’ll refine the process. 

Processes also make it easier for you to become more efficient and spend less time on each project. 

However, the biggest benefit is that clear documentation will allow you to eventually scale your team and hire others to do the work without sacrificing quality.

For example, if you’re a YouTube scriptwriter, here’s an example of what a documented writing process might look like: 

For each step of the process, you could also create checklists. For example, you could have a checklist for the hook to ensure that anyone you give this brief to (including yourself) always delivers the same quality work.

These templates improve the consistency of your work as you build a team, and even as a solopreneur, it helps you get the work done in less time. 

Another benefit of documented processes is that you can publish these processes as free resources to build an audience or sell them as courses to earn more income.

Step 6: Build an Audience

A key benefit of productized services is that it’s super easy to place an order, so it’s perfect for converting new customers. 

However, that means new people need to discover you and your services.

We have a separate resource on the step-by-step process of building an audience, but here are a few pro tips:

1. Select one platform, such as Twitter, LinkedIn, or YouTube. You’ll build an audience faster by posting a high volume of quality content on one platform rather than posting sporadically across multiple platforms.
2. Post content (related to your service/niche) consistently. Publish daily if you choose a social media platform, or once per week if you publish long form content, like YouTube or a blog.
3. Funnel people to an email list. The downside of social media and other content platforms is that you don’t actually own your audience. Build an email list so that you can ensure they see each piece of content you publish. 
4. Collaborate with other industry experts. You likely won’t earn many followers in your first few months of posting content, so interview experts and incorporate them into your content to amplify promotion.

Once you have a documented process, you can scale your services. 

Get More Help Building And Selling Your Productized Services 

These are all the basic steps to creating a productized service, but if you want more help from a community of entrepreneurs, consider joining the Copyblogger Academy. 

Run by two seven figure entrepreneurs, Charles Miller and Tim Stoddart, the Copyblogger Academy gives members access to nine courses and a community of like minded peers. 

Members can ask questions in the community forum, attend accountability sessions, and enjoy access to exclusive interview content from the world’s top marketers. 

You can join the Copyblogger Academy today risk-free as we’ll give you a full refund in the first 30 days if you aren’t 100% satisfied.