Productized Service

Productizing your service may be a workable option if you want to earn revenue. It is a way to take your business to new heights and drive exponential growth. You may add more clients to your portfolio by productized services. Turning your service into a product could benefit your business in terms of sales and revenue.   

 “In productized services, what you see is what you get”. 

Now, everyone wants to productize their services and switch to this business model. However, knowing about the “productized service” is critical before moving to adopting for your business. So, in this blog, we’ll discuss everything to help you know about productized services from what it is to how to start it.  

What is a Productized Service? 

A productized service is a service offering that is packaged and delivered in a standardized, scalable way, similar to how a physical product is sold without customization. A strong productization strategy enables companies to scale their offerings more efficiently. 

The main purpose of a productized service is to:

  • Scale your business easily
  • Sell your product to several customers without increasing the staff
  • Increase the efficiency and profitability of the business  
  • Focus on one specific problem you can solve
  • Fulfill your service with less effort   

Moreover, productized services are different from freelancing and other types of services. When you come up with a productized plan, you will target a specific type of customer and your service will solve their specific business need.  

You will use repeatable, predictable processes that make your customer experience enjoyable and smooth. With packaged services, clients no longer need to submit proposals because you provide straightforward price alternatives in the form of ready-made bundles. Your clients know exactly what is expected of them from the beginning.

Launch Your SaaS Product with NinjasCode

Main Characteristics of Productized Service 

Some key characteristics of a productized service include:

Defined scope and deliverables: The service has a clear, pre-defined scope of what is included and what is excluded, rather than being an open-ended or customized engagement.

Standardized pricing: The service is priced on a fixed package or per-unit basis, rather than being billed hourly or with varying project-based fees.

Repeatable delivery: The service is delivered through a documented, repeatable process, rather than being a one-off custom engagement.

Self-service elements: The service may have self-service components, such as online portals or automated workflows, to allow clients to purchase, manage, and consume the service with minimal direct involvement from the provider.

Scalability: The service is designed to be scaled up or down to accommodate different client needs and volumes, rather than being constrained by the provider’s resources. 

Productized Service Business Model

Using the productized services business model, you can effectively transform your work into a real business that you can either buy or sell. This allows the company to streamline its operations, increase efficiency, and potentially reach a wider customer base. 

Here are some business models so pick the one that is best for you.

1. One-Time Model

In this business model, the product is sold for a fixed one-time fee. It doesn’t need to create custom proposals. It has a predetermined scope of what the client is getting in exchange for their money, doesn’t involve the creation of custom proposals, and ideally has a clear delivery timeframe.

Pros Cons
Easy to calculate the revenue Difficult to build customer relationship 
Easy to sell with self-service 
Easy to pause for taking new orders 

2. Recurring Model

The recurring productized services model is subscription-based and offers a service or bundle of services for a monthly cost.

Pros Cons
Improve customer lifetime value Upfront investment 
Improved cash flowChurn risk 
Predictable revenue Upfront investment 

3. Unlimited Tasks

The unlimited task model offers the completion of tiny tasks, typically related to maintenance, for a fixed monthly charge.

Pros Cons 
Stable revenue Churn risk 
Limit the number of active tasks/requests
Customers keep their subscriptions without any pending tasks
Customers purchase the subscription by small tasks to get done 

 Difference Between Packaged and Productized Services

The below table shows the difference between packaged and productized services.

Packaged ServicesProductized Services
Customizable Standardized 
Unique to client Repeatable 
Higher marginLower margin 
Custom pricing Fixed pricing 
Unpredictable revenuePredictable revenue 

Benefits of Productized Services for Business

Below are the benefits of productized services for businesses. 

Grow Your Business Easily

The first benefit of productizing your services is scalability. By productizing services, you can grow your business and serve more customers without doing a lot of hands-on work on each project. From client to client or project to project, the model should only require modifications rather than an overhaul because it is replicable.

Without productized services, service providers who want to build an agency or team, have face difficulty in scaling their business. 

Boost Your Sales

Streamlining your processes and automating your sales process by productizing. It helps to improve productivity and put your business on a path toward efficiency and growth. Also, it boosts revenue and standardizes the sales process.     

Improve Team Productivity 

By systemizing the service delivery through productization, you can improve the productivity and efficiency of your team. You can improve efficiency by reducing time spent on repetitive tasks and enabling the team to focus on higher-value work. Also, you can work with multiple clients at once. 

Establish Loyalty in Your Customers 

Customers appreciate the consistency and reliability that comes with a productized service offering, which can help build loyalty. It will also lead to a better overall customer experience. 

Moreover, when you provide productized services, there is no need for bids or special offers because your clients will pay you upfront.

Streamline Support  

Productized services are more predictable, which makes it easier to streamline support and provide a better customer experience. In addition, it is the best way to move forward in your business.

Seller’s Perspective on Productized Services

Pros Cons 
Scalability Time-consuming 
Upfront payments Need investment 
Easier Selling 
Easy Employee Training 

Benefits of Productized Services for Customers

Here are some benefits that customers get from productized services. 

More Transparency

Customers can easily get what they want. No unnecessary calls, no fluff, and explanations are required. Everything is streamlined and set up in the productized service outline. 

More Predictability

Your customers will now be aware of how much they are paying when to expect the outcomes of your service (without even needing to speak with you!), and what precisely they may expect from the service they are purchasing.

Quick Buying Process

Self-service is not only more convenient for the vendor, but it also benefits the customer. Because customers are the ones who value their time just as much as entrepreneurs do. You may be sure customers will like it if they can quickly and easily acquire your service from your website without needing to schedule a consultation in advance and they know exactly what they’re getting. 

Buyer’s Perspective on Productized Services

Pros Cons
Transparency Less customization 
Self-service Less personalized 

How to Start a Productized Service?

How to productize a service?

Below are a few steps to help you productize the service.

How to Start a Productized Service

1. Focus on a Niche

First, you have to define your niche. The best niche helps your brand shine and it is a combination of your skills with market demand. Also, defining it early helps to focus on the audience who needs your services. 

2. Understand Your Customer Needs 

Understanding your client’s needs is crucial. However, if you don’t know what could help your clients, then do some research and find out what they want, and what things make your business more competitive. 

As a service business owner, it is vital to provide value to your clients. Without knowing their needs, you cannot provide them with the best services. 

3. Set Yourself Apart

Identify the unique selling point of the productized service software that helps you keep your product apart from your competitors. This could be specialized expertise, a streamlined process, premium quality, etc.

4. Standardize and Productize

Turn your service into a standardized, productized offering with clear scope, pricing, and delivery. This allows you to scale and streamline your operations. Also, determine the pricing strategy of the service. 

5. Create Systems and Processes

Develop efficient, repeatable systems and processes to deliver your service. This helps you maintain quality and consistency as you scale.  

6. Use Technology

Use tools and technology to automate and streamline your service delivery as much as possible. This improves efficiency and the client experience.

7. Package and Market

Present your service as a valuable, well-defined product with clear benefits. Use effective marketing to reach and convert your target customers.

How to Sell a Productized Service? 

Selling a productized service can be an effective strategy for growing a business. Here are some tips to help you sell a productized service successfully:

How to Sell a Productized Service 

Define Your Offering Clearly: Clearly define the scope, features, and benefits of your productized service ideas. Create a standardized package that addresses a specific problem or need for your target customers.

Price it Strategically: Price your productized service competitively based on the value it provides and what the market will bear. Avoid customizing the pricing for individual clients.

Market it Effectively: Develop a strong marketing strategy to promote your productized service. This may include optimizing your website, running targeted ad campaigns, and using referrals and partnerships.

Focus on the Customer Experience: Ensure a consistent, high-quality customer experience by streamlining your delivery process and addressing any pain points. This will help build trust and encourage repeat business.

Automate and Standardize Processes: Automate and standardize as many aspects of your service delivery as possible to improve efficiency and scalability. This may include using project management tools, templates, and workflows.

Continuously Improve: Regularly gather feedback from clients and monitor key metrics to identify areas for improvement. Iterate on your productized service to keep it relevant and appealing to your target market.

Productized Service Examples

Examples of businesses that have successfully implemented the productized service business model include:

Software-as-a-Service (SaaS) providers: Companies that offer cloud-based software applications as a standardized, scalable, and subscription-based service.

Digital marketing agencies: Agencies that offer pre-packaged digital marketing services, such as social media management, content creation, or search engine optimization.

IT support providers: Companies that offer a standardized set of IT support services, often with different tiers or packages to meet the needs of different-sized businesses.


Now several business owners have switched to a productized service business model because of its benefits. It is a compelling solution for businesses who want to scale their operations and optimize their offerings. 

Therefore, If your company provides services, it might be beneficial to investigate if productization is the best strategy for you. 

If you are looking to scale your business, then this trend you shouldn’t ignore. But, if you are aware of it and face difficulty in where to start, schedule a meeting with us. Our experts help you sell your productized service and ensure its success. 

Launch Your SaaS Product with NinjasCode