How I build a $20k/m Productized Service in 6 months
Build a successful productized service for your agency. Never sell hours. Sell output, then scale. Prioritize repeatable processes over customization, balancing client satisfaction with operational efficiency.
Jul 8, 2024
Productivity
4 min
If you’re looking toward the long-term goal of getting wealthy, you should ask yourself, “Is this authentic to me? Is it myself that I am projecting?” And then, “Am I productizing it? Am I scaling it? Am I scaling with labor or with capital or with code or with media?” So it’s a very handy, simple mnemonic. - Naval Ravikant
The internet is filled with ways to sell digital services and products.
When I started offering website services online, I found it incredible. Random person calls me and 17 minutes later I just landed a $2000 deal. That was mind-blowing.
It wasn’t until I got overburdened with work that I started to reconsider how much of a blessing this really was.
Yes, I was being offered more money and pay than a normal job; but, each client was different. It was as if I was recreating my service for each client. Fast forward to 2020, and I thought, instead of offering website design as my main service, what if I offered SEO as my main service?
Why? Because I was able to productize it much easier than design.
Productize Service: Create a repeatable, teachable system that you can use at scale.
So, instead of trying to start every project from zero for every client, I’m able to have an easily followable process.
This is what we did with our SEO services, which led to doing over 1000 SEO projects over the course of 4 years with very little involvement from me but the deliverable being high-quality and transformative for the client.
Below I’ll share the core differences, things I learned, and how to build a productized service.
Core Differences
So, what are the core differences between a service and a productized service
Things I learned building
Process is always better at scale than customization. Every major franchise does this well. Customization is still within a tight scope. Starbucks will mix anything they have for you; but they won’t offer alcholhol.
That might sound obvious but for some reason when we build our agency, we let the client drive…
I know you are a website developer, but can you help us with our social accounts?
I know you are a graphic designer, but can you build our website?
It’s important to consider a few things:
You may disappoint people: Some people may want a few things outside of the scope of the project. With our SEO servies, we didn’t offer backlinking services. To us that was because they just required too much custom attention… and that upset people. No biggee. We know what we offer and what we don’t.
Teaching the team how to quote a project was important: There are clients who are ready to spend $500 and others ready to spend $5000. To the best of your ability, it’s important to try and understand which client is in front of you. We are willing to do more custom work for the $5000 client but the majority of our clients will be the $500 and will go through our fixed process.
Always design 3 packages, with the goal to ideally sell package 2 (middle package) or the biggest package.
Have scripts for everything. From the first message, to the last, anything you may say twice, script it once.
If you can make it MRR, you are crushing it! MRR is better because the benefits of subscriptions is that you have reaccuring revenue.
How to Build A Productized Services
Here's a detailed list of steps to create a productized service:
Identify your core service: Apply the 80/20 principle to focus on the most appealing and frequently provided service. What service is most wanted by your clients and is able to be standardized?
Define clear deliverables: Outline exactly what clients will receive with the service.
Create package tiers: Develop three packages - small, medium, and large - with the goal of selling mostly medium and large.
Decide on the payment structure:
One-Time Fee: A flat one-time fee for the service
Subscription Service: Sell ongoing packages with a fixed scope per month. Think of writing, research, analysis, etc.
Unlimited task model: Completed unlimited tasks with an upper-limit per day. For instance, unlimited tasks with 2 deliverables per day
Build the back-end system: a. Create a clear checklist of deliverables for internal team use b. Develop scripts for landing clients c. Prepare scripts for client communication and feedback after the project is complete
Choose a management tool: Use software like Notion to house all information and processes.
Design a landing page: Create a webpage showcasing services, pricing, and how to take next steps.
Establish a communication process: Decide on methods for handling client questions (e.g., messaging, phone calls).
Implement and refine: Launch the service and continuously improve based on experience and feedback.
Systematize repetitive tasks: Create systems for any process done more than once to increase efficiency.
Remember to keep the process simple and focus on systematizing the internal processes while maintaining quality service delivery.
