Productized Services November 12, 2019

Who is building a productized service?

Robin Vander Heyden @Vinrob

Hey everyone,

Great to see this new group!

Big productized service fan here. I love the model since you are able to create a scalable business that runs without without you, but also because productized services offer a great experience for customers.

Some examples of productized services include WPCurve (acquired by GoDaddy), Design Pickle, WPBuffs (which is run by a fellow IH'er, @joeheadbuff), HubSnacks (small Hubspot tasks), and many others.

I will be hanging out in this group regularly to answer questions (feel free to ask anything about finding an idea / value proposition, building your MVP, setting up your marketing channels, and hiring a team)

About me: I founded ManyPixels and I wrote a free book about productized services: http://www.productizebook.co sharing my experiences of building ManyPixels if you want to get started on this business model. As a matter of transparency, I also run a Saas for productized services.

Feel free to ask me anything and please show what you're building :)

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    Thanks for doing this, I think a lot of IHs would do well to start a productized service(PS) before starting say a SaaS.

    Lots of skills transfer over and you can build an audience before you start the SaaS. @TheCraigHewitt did it with https://www.podcastmotor.com/ and https://castos.com/.

    We recently added a PS to https://versoly.com/done-for-you, what would you recommend to get paying customers?

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      Yep totally agree with @volkandkaya that PS are a great place to start, and even a great business model overall. And if you can transfer what you learned in starting a Productized Service into SaaS or a product based business it's a double win. And the combination of the two is real magic. Technology enabled services, etc. like Profitwell or Bench

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        Really love the examples of Bench/Profitwell. Pilot is another one!
        I think productized service that use technology to deliver a better customer experience is really awesome. We did that for ManyPixels by building a custom order form that makes it easy to "shop" for design services vs. having to go into long briefs.

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    Launched Pic.Hance last month: https://pichance.com/

    We have over 5000 sign ups and a handful of customers...it's been good but not great but we have hope.

    I am excited about image tools with AI models as you can totally automate the process. User uploads an image...something happens to the image (in this case...the image gets enhanced)...and the user gets the image back. Simple and no human need be involved.
    We are looking to do this on videos as well but thats more (computationally) challenging.

    Appreciate if anyone has ideas related to this concept...what type of processing would you like to see on an image/video?

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    Heya folks! I'm new to this group and excited to have found it. The last company I worked for as a PM, Avalara, productized sales tax compliance and filing. They turned it into a public business that generates hundreds of millions in revenue per year.

    I've gone a different path with my SaaS. It's a productized service, but instead of addressing a broad category such as sales tax, I am productizing a small part of the creative and web dev agency practice: Creating brand guidelines. I want to be the absolute best way for agencies to create and deliver branding work to their clients. Agencies typically spend 40 hours on putting together PDF brand guidelines, which make their engagements more expensive and the deliverables are harder for brands to use and maintain. https://www.1brand.co/solutions/agencies

    Does anybody have examples of successfully productizing small aspects of a service business? Taxfyle.com and other productized agencies come to mind for me.

  4. 1

    I reviewed your information and your 4 points of business models you were looking at. I'm curious why do people feel these are the only possibilities in business. I very seldom see people take on "ecosystem model businesses". For example, Google or Apple and its family of hardware and services.

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    Lol @Vinrob you are everywhere!

    We are running a semi-productized link building service over at https://dofollow.io but I am planning to start a few new ones next year once DF is optimized enough.

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      DoFollow is a great example, and I love the landing page (lots of social proof and benefits - which is mostly what a landing page should convey!)

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    We have been running a productized service for almost 3 years now.

    I co-founded a small search marketing company (Google/Bing Ads) and we saw a huge need for smaller-budget clients that couldn't afford our typical high-touch retainer model. We started a tier-based productized service, with clear costs/deliverables/constraints, and targeted it towards small businesses who usually can't afford an agency. The ease of use (online checkout, live dashboard, etc) means volume of sales goes up for us, without too much overhead.

    This volume has allowed us to expand our company and hire some full-time colleagues to help pad out our team.

    Since we're not super programmers ourselves, this has let us bootstrap a profitable platform without investing too much into an entire floor-to-ceiling SaaS, although we do a lot of pseudo-SaaS things with the platform.

    www.discosloth.com

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      How much clients you have monthly through ps model?

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        It varies (e-commerce clients tend to increase seasonally) but we range between 15-25.

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          That's great could we talk on dm or twitter
          Twitter I'd: raunak978

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      Looks great! What's the average monthly revenue for those small productized service customers?

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        A little over $500

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