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April 10, 2024

Productize: How to Turn Your Agency into a Product Business

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Are you looking for a new agency model that requires less overhead costs and offers more flexible working hours?

Have you considered offering productized services?

In this article, we’ll explore:

  • How to choose the right productized services for your business
  • The top productized services for various industries
  • Pricing & scaling strategies
  • Success stories and case studies

And more! Let's begin.

What are Productized Services?

Productized services are services that are packaged and sold like products. They have a clear scope of work, deliverables, and a standardized price. Productized services can range from simple tasks, like social media management, to more complex services, like website development.

By packaging your services like digital products, you can offer a more predictable and transparent pricing model, which is something that customers appreciate.

With traditional services, pricing can be vague and difficult to understand. Offering a standardized price lets customers know exactly what they're getting and how much it will cost.

Benefits of Offering Productized Services

There are several benefits to offering productized services:

  • Reduced administrative work: With a set scope of work and pricing, you don't have to waste time on business proposal writing or negotiating prices. This means you can spend more time focusing on delivering high-quality services to your customers.
  • More efficient processes: You can streamline your processes since you're offering the same package to every customer. This means you can reduce the time it takes to complete each project, which can help you take on more clients and increase your revenue.
  • More predictable cash flow: Having a standardized price means you have a more predictable flow of cash. This can help you better manage your finances and plan for the future.
  • Improved customer experience: Customers appreciate a transparent pricing model and clear deliverables. By offering productized services, you can provide a more reliable and consistent service experience for your customers.

How to Choose the Right Productized Service for Your Business

When choosing a productized service to offer, there are several factors to consider:

  • Your skills and experience: Choose a service that you're good at and that you enjoy doing. This will help you provide a high-quality service to your customers.
  • The demand in the market: Look at similar businesses to see what services they offer and what gaps you can fill. Choose a service that is in high demand and that has room for growth.
  • Your business goals: Choose a service that aligns with your overall business goals. This will help you stay focused and motivated as you grow your business.

By taking these factors into consideration, you can choose a productized service that is both profitable and fulfilling.

Top Productized Services for Various Industries

Now that we’ve defined and discussed the benefits of productized services, it's time to explore the various types of services to offer for different industries:

Digital Marketing Services

From social media management to email marketing, there are many different aspects of digital marketing that businesses need help with.

As a digital marketing service provider, you can offer a range of services such as search engine optimization (SEO), pay-per-click (PPC) advertising, and social media advertising. By staying up-to-date with the latest trends and algorithms, you can ensure that your clients' online presence is always ahead of the game.

Content Creation Services

Content is king, and businesses need high-quality content to attract and engage their target audience. From social media posts to blog posts to video marketing, there are many different types of content that businesses need help with.

By offering content creation services, you can help businesses develop a content or social media strategy that aligns with their brand values and target audience.

Are you an agency owner looking to increase recurring revenue AND save you tons of time when it comes to content creation? Consider becoming a social media reseller and partnering with a white label partner like MixBloom to scale your social media agency!

Try us out for 7 days with a free trial!

Graphic Design Services

From logos to website designs, there are many different aspects of branding that businesses need help with. Offering graphic design services can help businesses create a consistent and professional image.

As a graphic designer, you can offer a range of services such as logo design, website design, and marketing materials. You can create designs that resonate with their customers and help them stand out from the competition.

Related: How to Hire a Freelance Graphic Designer, Rates, Job Sites, Marketplaces

Web Development Services

There are many different aspects of web development that businesses need help with. Offering web development services, you can help your customer base create a seamless user experience and increase their website traffic.

You could offer a range of services such as website design, website development and website maintenance.

By staying up-to-date with the latest web development trends and technologies, you can ensure that your clients' websites are always user-friendly and optimized for search engines.

Virtual Assistance Services

Many businesses need administrative support but may not have the resources to hire a full-time employee.

Virtual assistance services provide businesses with the support they need without the added expense of a full-time employee. As a virtual assistant, you can offer administrative support to businesses without being physically present.

Virtual assistance services can include appointment scheduling, email management, and data entry.

Pricing Strategies for Productized Services

One of the most important factors to consider when it comes to pricing your productized service is the value you offer to your customers. You should also take into account the demand for your service in the market.

Here are some pricing strategies to consider:

Fixed Pricing vs. Tiered Pricing

Fixed pricing is a straightforward pricing strategy where you offer only one productized service at a set price. This pricing model is suitable for businesses that offer a single service with no variation in the scope of work.

On the other hand, tiered pricing is a more complex pricing strategy where you offer different packages with different pricing and features. This pricing model is suitable for businesses that offer a range of services with varying levels of complexity and customization.

Subscription-based Pricing

Subscription-based pricing is a popular pricing model where customers pay a recurring fee for your productized service, usually on a monthly or yearly basis.

This pricing model creates a predictable cash flow for your business and ensures that you have a steady stream of income.

It also allows you to build long-term relationships with your customers and provide ongoing value to them.

Value-based Pricing

Value-based pricing is a pricing strategy where you price your services based on the value you bring to your customers, rather than the amount of work you put in.

This pricing model takes into account the benefits that your service provides to your customers, such as time savings, increased productivity, or improved quality of life.

Value-based pricing requires a deep understanding of your customers' needs and the ability to communicate the value of your service effectively.

Related: How to Sell the Value of Social Media Management Services

Tips for Setting the Right Price

Setting the right price for your productized service can be a challenging task.

Here are some tips to help you set the right price:

  • Research your competition and gauge the demand for your service. This will help you understand the market and what your customers are willing to pay for your service.
  • Create a pricing structure that reflects the value you offer. Your pricing should be based on the benefits your service provides to your customers, not just the time and effort you put in.
  • Consider your costs and expenses. You need to ensure that your pricing covers your costs and allows you to make a profit.
  • Be willing to adjust your pricing as you gain experience and refine your service. Your pricing should be flexible and adaptable to changes in the market and your business.

Social media agencies! Check out our guide on pricing your social media packages effectively.

Scaling Your Productized Service Business

As your business grows, you'll need to adjust your processes and strategies accordingly.

Here are some tips for scaling your productized service business:

Streamlining Processes and Automation

Automating your processes can save time and increase efficiency. Use software and AI tools that help streamline your tasks and provide a better customer experience.

One way to streamline your processes is to use a project management tool to keep track of deadlines and tasks. Another way is to use a CRM (customer relationship management) software to manage customer interactions and track sales leads. By automating your processes, you can focus on delivering high-quality services to your clients.

Another way to streamline your processes is to outsource certain tasks to freelancers, virtual assistants or white label agencies. This can free up your time to focus on higher-level tasks, such as business development and strategy.

Hiring and Building a Team

Consider hiring employees or freelancers to help manage the workload. Build a team that is aligned with your company culture and values. When hiring employees, look for candidates who have experience in your industry and who share your passion for delivering high-quality services to clients.

When building a team, it's important to establish clear roles and responsibilities. This can help avoid confusion and ensure that everyone is working towards the same goals. Create an organizational chart to show how each team member fits into the overall structure of the business.

Expanding Your Service Offerings

As you gain more experience and your business grows, you may want to add new services to your offerings. Do market research to identify areas where your expertise is needed. This can help you stay ahead of the competition and attract new clients.

When expanding your service offerings, it's important to focus on your core competencies. Don't try to offer too many services at once, as this can dilute your brand and confuse your clients.

Instead, focus on offering a few high-quality services that align with your expertise and that meet the needs of your target market.

Monitoring and Adjusting for Growth

Regularly monitor your business's performance and make adjustments accordingly. Analyze your revenue and expenses, customer feedback, and market trends to stay ahead of the curve. Use this information to make informed decisions about your business strategy and to identify areas where you can improve.

One way to monitor your business's performance is to set up key performance indicators (KPIs). These are metrics that you can use to track your progress towards your business goals. Examples of KPIs include revenue growth, customer satisfaction, and client retention.

Another way to monitor your business's performance is to conduct regular customer surveys or directly request feedback from your clients. This can help you identify areas where you can improve your services and better meet the needs of your clients.

Success Stories and Case Studies

Let's take a look at some successful examples to get inspired!

Examples of Successful Productized Service Businesses

MixBloom: A white label social media marketing agency that helps agencies and small businesses produce social media content creation at scale.

MixBloom was founded in 2016 and offers 3 different social media marketing plans and packages to suit the needs and budget of businesses of all sizes. It aims to help agencies and small businesses scale without the need to grow their in-house team.

The Black Tux: A suit and tuxedo rental service that simplifies the process of renting formalwear online.

The Black Tux was founded in 2012 and has quickly become a popular alternative to traditional suit and tuxedo rental services. Their productized service simplifies the process of renting formalwear online by offering a wide selection of high-quality suits and tuxedos, free shipping and returns, and a fit guarantee. The Black Tux's unique value proposition is its commitment to making the rental process as easy and stress-free as possible for customers.

DesignJoy: A 'design agency with a twist' - they offer multiple design subscriptions to help businesses scale.

The agency produces quality designs for apps, websites, logos, social media, ads etc that businesses can pay a monthly fee for unlimited requests.

As graphic designers don't come cheap, DesignJoy created a productized business to provide an alternative option for businesses looking to scale without hiring and growing their team.

We hope this article has given you a better idea of what productized services are and the benefits of offering them.

Whether you're just starting out or looking to take your existing business to the next level, we encourage you to start exploring the different services and pricing strategies to help grow your agency.

Good luck!

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