The Productized Service Formula

With so many productized service businesses using our software I think we have a pretty good idea of what makes some of them successful while others go out of business just a few months into their subscription.

It boils down to a combination of four things:

Productized Service Success =
Your Market + Your Services + Your Systems + Your People

Let’s look at each one of those in order of importance.

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The Only 2 Things Your Business Needs

There are a million things you could focus on – customer acquisition, retention, sales, marketing, hiring, accounting, technology – the list goes on and on.

But at the end of the day you only need two things to stay in business…

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Designing The Client Experience For Productized Services

When I had the idea to build a tool for selling productized services I knew the user experience had to be great – both for our customers and, more importantly, for their clients.

After all, if we’re going to be handling the checkout flow, it has to be optimized for maximum conversions.

Now, unlike a traditional services model where you’re dealing with custom quotes, proposals and invoices, customers already know exactly what they’re getting and at what price.

So if you break it down, the process from start to finish involves four parts:

1. service selection
2. project information
3. payment
4. communication / delivery

This is a story of how we put them together…

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How Too Many Features Can Ruin a Great Product

Have you ever been excited to try a piece of software that seemed to offer so many great tools in one place… only to discover it’s unusable in real life?

I had that experience when looking for a new live chat solution. Promising apps with many great features turned out to be nearly impossible to use and riddled with issues.

From the sidelines I could see the teams had been spending too much time on feature requests and too little on the core product.

And that got me thinking… Because up until recently we suffered from the same problem…

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Software For Selling Productized Services

If you’re using a standard project management app, an online form builder, or even a simple google doc to manage your business, you know how none of these tools were really made for selling productized services.

Having been in the productized service business myself, I know frustrating it can be to cobble together various applications just to get the “perfect” workflow for handling project work.

I think at one point we had over a dozen different applications and plugins we were using to run the business. Stuff like membership software for billing and client accounts, Wufoo for collecting project information, Basecamp for managing projects – the list goes on and on.

Needless to say, keeping up with all the tools was a hassle, especially when upgrading one component would inevitably break something else.

There was no all-in-one type of solution on the market, so I took it upon myself to create it. One software that would work really well for a productized service. And that’s exactly what we did, but more on that later.

First, lets break down the process of selling and delivering a productized service, and what makes it different from selling traditional services and products.

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Building a Business That Can Grow Without You

 

Being ankle-chained to your computer sucks. Here’s how to build a business that can prosper without you.

Many profitable services started as one-man freelancing or consulting shops. This is great because you get to learn about the needs of your market and how to serve them. You also don’t need a big starting capital to immediately hire a team.

Transitioning out of that freelancer mindset to building an actual business can be difficult, but the benefits are well worth it.

For one, you get to take a vacation once in a while, without worrying about your business. You also get to leave the boring tasks to somebody else and do more of the things you actually enjoy. It even makes it possible to sell your business should you decide to cash out and retire in the future.

So lets look at how you can create a self-sustained business.

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5 Growth Hacks For Digital Agencies

 

Check out these five actionable growth hacks for getting more clients, increasing customer lifetime value and growing your service business.

There’s a ton of advice online on “growth hacking” for software companies, so we thought we’d share some growth hacks that work for service based businesses.

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Pricing Strategies For Digital Agencies

How-to increase the revenue of your digital agency with value based pricing and a few psychological tricks.

Why are SEOs charging too little for their services? Because a) they’re trying to compete on price and b) they use cost-based pricing.

There’s no point trying to compete on price, unless you are THE cheapest provider in the niche, bar none. If you decide to go down this route, know that there will always be someone who’s hungrier than you and willing to work for less.

Cost-based pricing means you price something based on labor costs and materials. It works for commodities like bread and milk. Selling services this way is about as effective as a cat door in an elephant house.

Let’s discuss value pricing instead.

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