{"id":37,"date":"2023-11-29T12:04:46","date_gmt":"2023-11-29T12:04:46","guid":{"rendered":"https:\/\/productive.io\/bold\/?p=37"},"modified":"2024-01-12T12:34:11","modified_gmt":"2024-01-12T12:34:11","slug":"productizing-agency-services-is-it-the-right-time","status":"publish","type":"post","link":"https:\/\/productive.io\/bold\/blog\/productizing-agency-services-is-it-the-right-time","title":{"rendered":"Productizing Agency Services: Is It the Right Time?"},"content":{"rendered":"

Articles<\/a><\/p> –

{{minutes}} min read<\/p>

Productizing Agency Services: Is It the Right Time?<\/strong><\/h1> \"\" <\/a>

Marija Kata Vla\u0161i\u0107<\/p><\/a>

November 29, 2023<\/p> \"\"

Let\u2019s talk about one thing we all like:\u00a0getting paid what our work is worth.<\/strong><\/p>

Retainers aren\u2019t easy to win.

Pitching for free is hopefully a habit from the industry\u2019s past.

Chasing payments is… not fun.

Most importantly, certain workflows get repeated time and time again. Then why not bundle and sell them as products?

Service<\/strong>\u00a0productization<\/strong>\u00a0is increasing. Agencies are packaging deliverables at fixed costs and set timelines to provide more value to clients and save time on determining project scope, resource needs, timing, and pricing.

As CEO of\u00a0Huge<\/a>,\u00a0Mat Baxter<\/a>\u00a0stated for\u00a0The Drum<\/a>: <\/p>

\u201cThe productization model is a radically different model. It’s a more stable model, it’s a more margin accretive model, it’s more generally stable for client relationship model than we’ve had in the past.\u201d<\/p>

A recent\u00a0BenchPress\u00a0<\/a>report included pricing insights from over 600 agencies based in the UK. The most common pricing model turned out to be\u00a0blended rates<\/strong>.

This unfortunately isn\u2019t the best option out there for agencies because it can easily\u00a0decrease profit margins<\/strong>\u00a0when clients, for example, require more senior staff.

Standardized service packages help agencies\u00a0improve capacity planning<\/strong>\u00a0and\u00a0streamline processes<\/strong>\u00a0across their wide range of services.
A productized approach allows agencies to replicate successful offerings, serving multiple clients efficiently and effectively managing client requests.
Perhaps it time to spearhead\u00a0a smarter pricing model<\/strong>\u00a0to:<\/p>