If you’re a freelancer or consultant, you know that selling your services can be a profitable business. But what if you’re looking for an even higher level of success? Consider turning your service into a product.
Table of Contents:
- What is productization
- Benefits of productized services
- The framework for productized services
- Types of productized services
- Steps to creating your first productized service
- Productize your way to passive income
When you turn your consulting services into a product, you cut out the middleman and can increase your profits significantly. Plus, since it’s not limited to one-on-one sessions, you can reach more people with the same effort.
In this productization guide, we’ll discuss what productization is and how to apply it to your business. We’ll also explore some of the benefits of productized services and provide tips for getting started.
What is productization?
Productization involves taking a service and transforming it into a product. This means creating something that can be sold on a regular basis and generated again with minimal effort. It could be an online course, an ebook, or even pre-packaged services such as coaching packages.
Many entrepreneurs take this path to create more passive income, which allows them to scale their businesses and reach more people. It also means they can focus on higher-value activities, such as creating content or managing relationships with larger clients.
In the productization of services, the consultant creates a system that delivers their service consistently on demand. They can then share their expertise with a large audience and receive payment for each successful delivery.
Benefits of productized services
There are many benefits to productizing a service that leads to an increase in profits and customer satisfaction. These include:
- Scalability
- Increased brand authority
- Repurposed knowledge
- Increased profit margins
- Increased predictability & customer satisfaction
- Increased efficiency
The primary benefit of productizing your consulting services is scalability. Whereas one-on-one sessions are limited to how many customers you can serve at a given time, productized services can be sold over and over again with minimal effort.
This allows you to reach more people and generate more revenue without increasing your workload. It also gives you the opportunity to focus on bigger projects that have higher profit margins, such as corporate consulting or public speaking engagements.
For example, let’s say you are a life coach. You could create an online video course that people can take on their own time. This would allow you to reach more people than if you only offered one-on-one sessions, and it would also give your customers the flexibility to learn at their own pace.
Read more: How to Scale a Coaching Business (3 Ways)
Another benefit of productizing your services is that it can help you increase your authority in the field. You’ll be able to demonstrate your knowledge and expertise by providing an organized, comprehensive course or product for people to purchase. This can also help you build credibility as a thought leader and attract larger clients.
Plus, if your product is well-received, it can lead to referrals and word-of-mouth marketing that will keep your business growing.
Productizing your services allows you to repurpose the knowledge and expertise you already have. You don’t need to create something completely new if you can package existing content into a more structured form.
You can do this by modularizing your service into smaller chunks, such as creating an online video course or ebook. Or, you could create a subscription/membership service that gives customers access to additional content as they progress. This will also save you time and energy in the long run, since you won’t have to continually reiterate the same information over and over again.
For example, if you’re an expert on SEO, you could repurpose blog posts or webinars into an online course. This would enable you to share your knowledge with more people and generate a passive income without having to create all-new material each time.
Productizing a service simplifies the process of promoting and selling it. With this approach, customers gain clarity about what components they need to purchase for their desired outcome. As you lead them through the funnel, you’ll be able to provide a more personalized experience with your productized services.
Productizing a service can also help you increase your profit margins. Since you’re providing the same service over and over again, it doesn’t take as much time or effort to deliver each individual product. Therefore, you are able to charge a higher price for the same amount of work.
Plus, with productized services, you can offer upsells and add-ons to help boost your profits. For example, if someone purchases your online course, you could offer additional services such as one-on-one coaching sessions or personalized feedback on the customer’s work.
Productizing a service also makes it easier to create more accurate forecasts for your business. You can better predict the influx of customers and plan accordingly by setting up marketing funnels or automated campaigns.
Additionally, predicting customer satisfaction becomes much simpler when you have a clear and structured product in place. Customers will receive exactly what they expect with each purchase, and this will help ensure that they’re happy with their purchase.
Productizing a service can also help you become more efficient in your business. Since the same product is being delivered over and over again, you don’t need to reinvent the wheel each time. This saves you time, energy, and resources that can be used for other aspects of your business, such as marketing or customer support.
Each time you create a new product, you can also use that within your service offerings to make you a more efficient service provider. For example, if you create an ebook, you could use this as a lead magnet to attract more customers or incorporate it into your productized service.
The framework and steps for productizing your services
A solid framework allows you to create a system that delivers consistent results. This increases customer satisfaction and further bolsters your reputation as an authority in the field. Review each step to determine how you can adjust it to fit your business model.
Step 1: Define your target market and customer needs
It’s important to identify who will be using your productized services and what they need in order to get the most value out of them.
Ask yourself questions like:
- What challenges are my customers facing?
- What solutions can I provide to help them?
- Are there barriers that would stop them?
There’s no point in creating a product if no one will use it. So, understanding your target market is key to developing products that meet their needs and will actually sell.
Step 2: Break down your services
Once you understand your customer’s needs, it’s time to brainstorm all the ways they can learn. This could involve creating an online course, offering individual coaching sessions, or designing a subscription service. You could even create a podcast or video series that people can follow along with.
Offering multiple ways to consume your content will make it easier for people to find what works best for them. Once you have enough data to start analyzing trends, you can determine which channels are working best and invest more time and energy into those.
Step 3: Organize your content
Once you have a clear understanding of your target market and the services you’re offering, it’s time to organize your content. This will make it easier for people to access information quickly and follow along with your instructions.
Be sure to create a logical structure that is easy to navigate and understand. Map out the steps that customers should take and provide any additional resources they might need. You should also provide clear learning objectives so people know what they can expect to get out of your services.
Step 4: Identify which parts can be automated
Automating parts of the process will help you to save time and energy in the long run. It can also help reduce customer confusion since they don’t need to spend extra time on simple tasks.
For example, if you’re providing an online course, you can use software like Thinkific to automate the process of enrolling and tracking progress. This would make it easier for customers to get started and help you keep track of their progress.
Be sure to think about every part of the process, including email follow-ups and streamlining the checkout process. Each of these steps can be automated to make your productized services easier and more efficient.
Step 5: Identify your support staff
While many service providers must be experts in their field to deliver their content, you don’t necessarily need to do all the work yourself. If you have a team of experts that can help with customer service and technical support, it will make your productized services much easier to manage.
This is especially helpful when customers are confused or having trouble understanding something. Having someone there to assist them will help them get the most out of your services and ensure that everyone is satisfied.
Step 6: Create a pricing structure
When productizing your services, it’s important to come up with a pricing structure that will make sense for your target market. Some people might prefer to pay a one-time fee for access to all of your services, while others might opt for a monthly subscription.
Think about what will be the most attractive to your customers, and make sure that you’re charging enough to cover your costs. You want to make sure that you’re making a profit while providing valuable services to your customers. When pricing your products, be sure to consider the price of your time, the cost of the materials, and any additional resources needed.
One pricing structure to consider is value-based pricing. This type of pricing is based on the results you achieve for the client. It ensures that the client only pays for results rather than for time spent working.
Not only does this structure align the interests of both provider and customer, but it also makes scaling a breeze. With performance-based models, service providers can take on more clients without having to raise their overhead costs substantially. The result is an efficient system focused on producing results for everyone involved.
Read more: Complete Guide to Pricing Your Online Course
Step 7: Create a sales plan for your productized services
Now that you have a clear understanding of the services and pricing structure, it’s time to create a sales plan. Make sure that your sales plan includes strategies for both online and offline marketing.
For online marketing, consider setting up an email list to keep in touch with potential customers. You can also use social media to promote your productized services and connect with potential customers.
For offline marketing, look for opportunities to attend local events or speak at conferences. You can also use traditional methods like direct mail or print media to introduce potential clients to your services.
You can also create a referral program that encourages existing customers to spread the word about your services through affiliate links. This will help you gain new customers without having to spend additional money on marketing.
Read More: How to Use Marketing Psychology to Sell
Step 8: Promote your productized services
Once you have everything set up, it’s time to start promoting your productized services. You can use traditional marketing tactics like email campaigns, social media posts, and paid advertisements. It’s also a good idea to focus on building relationships with potential customers.
This could include attending conferences, participating in online forums, or even just reaching out personally to people who could benefit from your services. The more you can make connections with potential customers, the more likely they are to use your productized services.
It’s also important to stay active online, as this will help to keep your services top of mind for potential customers. Posting regularly on social media and staying up-to-date with industry trends will make it easier for people to find out about your productized services.
By promoting your productized services and building relationships with customers, you can ensure that your business will be successful. With the right approach, you can make sure that your productized services are profitable and beneficial for everyone involved.
Types of productized services
These types of services allow businesses to outsource certain tasks quickly and easily while still maintaining a quality product. When creating a productized service, it’s important to consider the customer’s needs first and create an offering that will provide value. You should also develop a pricing structure that is fair and straightforward.
Here are some examples of productized services that you could offer:
As a service provider, you possess the skills, knowledge, and expertise to teach others. This is why creating paid courses or tutorials has become so popular among freelancers and consultants looking for scalable income streams. Whether it’s teaching extensive skills that require more than one lesson to learn or shorter tutorials or webinars that allow customers to quickly master specific abilities in just a day or less — there are plenty of opportunities worth considering.
To deliver these services, you could put together an online course on a platform like Thinkific or host webinars using a tool like Zoom. User experience is essential here, as customers are willing to pay for a high-quality learning experience that is both informative and enjoyable.
How to implement it:
Creating a course or webinar requires some time upfront, but it will pay off in the end. You can choose to either host it yourself or use a platform like Thinkific to do the heavy lifting for you. If you want to manage the site yourself, you’ll need to be sure you have a payment processor, integrate it with your website, and have software for delivering the course materials.
Challenges with courses and webinars:
Courses and webinars can be time-consuming to create, so it’s important to make sure that you have the resources necessary in order to deliver a quality product. You also need to be careful with pricing, as customers may be hesitant to pay too much for an online course or webinar.
Books have long been used as an effective way to share knowledge and expertise with the public. As a service provider, you could package your skills together into an ebook or print book for customers to purchase. Whether it’s the latest trends in web design or the basics of HTML coding, you can use your expertise to create an industry-specific guide that customers will be eager to purchase.
You could also partner with a publisher or self-publish your book to reach a wider audience. The important thing here is to ensure that your book provides value to readers and makes them eager to explore the topics you’re discussing.
For those who have written books and are looking to turn them into services, you can offer ebook versions of your book for sale or create webinars or one-on-one coaching sessions to walk customers through the material and help them apply it.
Read more: How to Sell Ebooks Online
How to do it:
If you’re interested in writing a book, you can start by outlining the topics and ideas you’d like to cover. Research what kind of books are popular in your industry, as well as how to market them for maximum reach and income. You can also look into options for self-publishing or partnering with an established publishing house.
Challenges with books:
Writing a book can take significant time and effort, especially if you’re not a particularly great writer. You can opt to have someone else write it for you, but that adds an extra cost. Additionally, books might not yield the most immediate income, as customers may take some time to read through your book and come back with questions. This can be resolved by offering additional services such as webinars or one-on-one coaching sessions.
If you have skills or knowledge in a particular area, you could offer customers the chance to acquire a license for specific products. For example, a software provider could offer customers the option to purchase a license for their software, allowing them to use it without having to pay full price.
If you are a web designer, you could give customers the option to purchase a license for certain themes or plugins. This allows them to use your products without having to build and maintain their own versions from scratch.
How to do it:
To get started with licensing products, you’ll need to decide which products you want to license and create a licensing agreement outlining the terms of use. You’ll then need to set up a payment processor on your website so that customers can purchase a license for your product.
Challenges with licensed products:
When it comes to granting licenses for your products, you may run into challenges such as customers not following the terms of the license agreement or customers sharing your products with others. To mitigate these risks, you’ll need to have a well-defined licensing agreement in place that outlines exactly which actions are allowed and disallowed. You should also consider tracking who has access to your licensed products so that you can monitor their usage.
The use of templates is a great way to make productized services more efficient. By creating templates for various tasks, you can save time by simply filling in the details rather than starting from scratch each time.
For example, a web designer could create website templates that customers can simply fill in with their own content to quickly get an attractive website up and running. Similarly, a consultant could create presentation templates for clients to use when delivering presentations to prospective customers or investors.
How to do it:
To get started with templates, you’ll need to consider which tasks or services you want to offer and create templates for them or work with a designer to create them. You can also look into purchasing pre-made templates from stock image websites to save time. Once you’ve created the templates, make sure that they are easy to use and customize so that customers can quickly fill in their own content.
Challenges with templates:
Using templates can save you a significant amount of time, but there are also potential challenges to consider. For example, customers may not find the template useful or they might be overwhelmed by too many customization options. Additionally, if you offer generic templates that aren’t tailored to a specific customer’s needs, they may not find it valuable. To avoid these issues, make sure to tailor your templates as much as possible and provide clear instructions for how to customize them. Additionally, ensure that the template is easy to use and understand.
If you have the technical skills to design and develop apps, or the funds to hire a developer, you can turn your productized service into a mobile app. This is an excellent way to reach and engage with customers on the go. For example, a fitness coach could create a mobile app to help users track their progress and access personalized advice while on the go.
How to do it:
To get started, you’ll need to decide which features you want to include in the app and begin designing and developing the functionality. You can also consider working with a mobile app developer to help you build your app. Once the development process is complete, you should submit your app to an app store for review so that it can become available for download.
Challenges with apps:
Developing and maintaining an app can be a time-intensive process. It will most likely require ongoing maintenance and updates to ensure that it is secure and running optimally. You’ll also need to consider how you will market the app so that people know about it and download it. There are always risks associated with developing mobile apps, such as security issues and compatibility issues with different devices. To mitigate these risks, you should conduct thorough testing of the app on a variety of devices before launching it.
By offering memberships or subscriptions, you can give customers access to exclusive content or services over an extended period of time. They create a more exclusive and intimate relationship with your customers and make it easier for them to keep up with the latest changes in your industry.
For example, a nutritionist could offer their users access to weekly meal plans or exclusive content on health topics through a paid membership program. This allows them to continually provide value to their customers while also creating a recurring income stream.
Another way to create this type of service is through a newsletter or email list. By providing customers with regular updates and exclusive offers, you can build a loyal following and remain top-of-mind as an expert in your field. No matter what productized service you decide to offer, the key is providing value and creating a positive user experience.
How to do it:
To get started, decide which type of membership or subscription service you want to offer and create a pricing structure. From there, you can determine how you will host and manage the service, such as through a platform like Memberful or Patreon. Lastly, you can create the content or services that customers will receive as part of their membership.
Challenges with memberships/subscriptions:
Offering memberships and subscriptions comes with potential challenges to consider. For example, customers may not find value in your service or they may not stay subscribed for an extended period of time. Additionally, customer retention can be difficult to manage and maintain over time. To avoid these issues, make sure that the content you provide is valuable and engaging to keep customers interested in your services. You should also consider implementing strategies such as loyalty programs or discounts to encourage subscription renewals.
Read More: 13 Membership Sites that Will Inspire You
Steps to creating your first productized service
Now that you know what a productized service is and some examples of what it can look like, let’s discuss the steps for creating your first one.
- Identify your service: To get started, identify the type of service you want to offer and consider how it could be productized. Think about how you can create a service that provides customers with value and solves their problems in a way that can be delivered quickly and easily.
- Develop the product: Once you have an idea for your productized service, it’s time to start developing it. This includes designing the service, building out any necessary functionality or tools, and testing it for quality assurance.
- Market the service: Once your service is complete, you need to promote it so that potential customers are aware of its existence. This includes creating marketing materials such as website copy, videos, and social media posts to get the word out about your productized service.
- Monitor and improve: Once your service is launched, it’s important to monitor its performance and continue improving it over time. This includes gathering feedback from customers and making modifications as necessary.
Productize your way to passive income
Productized services are an excellent way to generate recurring income, provide customers with value, and build a loyal customer base. Following the steps outlined above, you can create your own productized service and earn passive income from it. The success of your productized service will depend on the effort and dedication you put into it. Put in the necessary time and energy to create a valuable offering that solves customer problems and delivers results.
Just keep in mind that providing value and creating a positive user experience should be your top priority when creating and managing your service. With the right productized service, you can turn your expertise into a profitable venture that provides both customers and yourself with lasting value.
Want to try out online courses as your product? Why not use the Thinkific free trial to do it? Click here :).
