This is an excerpt of the post ‘productized services as a service’ published on richardpatey.com about how freelancers, consultants and creative agency owners can benefit from standardizing their offering in terms of ability to scale.
A productized services business is one that sells and packages up a service as a product with a standardized list of features, a fixed price and delivered by a set date. This is similar but different to a ‘service as a service’ business, of which WP Curve is the best example, as the amount of work (and cost) delivered per month in a productized business is fixed whereas services such as offering unlimited small wordpress jobs are not. So why would you want to start a productized service?
Freelancing is not scalable as you have a fixed number of hours you are trading for income. The agency model scales but as a business model it kinda sucks as you end up competing with others through writing proposals where the majority lose and every new client has different expectations to manage. Competition with agencies is not inherently a bad thing, but when the market is saturated with generic design and marketing agencies (as is the case in my home city of Norwich, UK) chasing after the same pitches then it’s often a race to the bottom. As Peter Thiel stated on the Tim Ferriss podcast, competition is actually the opposite of being capitalistic; Google makes so much money because it dominates the search and online advertising market. Find your niche and dominate it.