This guest post was adapted from an insightful video conversation, hosted by Lex Roman, featuring Philip Wallage, about transforming your freelance business. As the freelance marketplace continues to evolve on platforms like Fiverr, Upwork or (ahem) Workreap, there’s a growing trend that’s catching the attention of creative professionals: productized services.
You can watch all of Lex’s videos on the latest tools and SaaS products on Youtube at @lexromanwashere. You can find Philip at philipwallage.com or on his Youtube page @PhilipWallage where he offers support and resources to remote creatives.
What if you could run your service like a product?
Imagine: no more custom scoping, fewer pricing questions, and more time in your schedule.
The promise of the productized service… predictable and repeatable in ways the custom scope projects do not.
This is what productized services offer – a trend taking creative services by storm. Companies like Design Joy and Twostep Social show how it works. They offer clear, pre-packaged services that feel more like buying a product. From upfront pricing to smooth onboarding, everything runs like clockwork.
Meet Our Expert Guide
Today’s guest is Philip Wall. He started his journey young, freelancing at age 17-18. For seven years, he ran a web design company. His path led him to work with big names like Lego and Adidas. Now, Philip has a clear mission: to end the feast-or-famine cycle that many freelancers face.
What We’ll Cover
In this talk, we’ll explore:
- What productization really means
- Who it works best for
- How to price your services
- Tools to help you succeed
- Steps to get started
Whether you’re thinking about productizing your service or just curious about the buzz, you’re in for an eye-opening discussion. We’ll show you how to package your skills into something predictable, repeatable, and scalable.
Why Hourly Billing Fails (Feast or Famine)
There’s a point where the hourly rate model breaks.
Let’s talk about why charging by the hour can hold you back. When you bill hourly, you’re stuck in a tough cycle. Some months you’re swamped with work, and others you’re scrambling to find clients. This feast-or-famine pattern makes it hard to plan your business growth.
The Hidden Costs of Hourly Work
Think about this: When you work faster and smarter, you actually earn less money under an hourly model. That doesn’t make sense, right? You’re being punished for getting better at your job. Plus, there are all those hours you spend on tasks you can’t bill for – like writing proposals or having initial client calls.
The Capacity Puzzle
Here’s something many people miss: When you say you have 20 billable hours available, that doesn’t mean you have 20 hours free in your schedule. You need time for emails, meetings, admin work, and even breaks. It’s easy to overbook yourself when you don’t account for all these non-billable tasks.
The Problem with Free Scoping
One of the biggest traps of hourly billing is all the unpaid work you do before a project starts. You spend hours scoping projects and writing proposals – all for free. When you package your services instead, you can build these costs into your pricing and stop giving away your expertise.
Moving to Value-Based Work
The solution? Stop thinking about time and start thinking about value. When you package your services, you’re selling outcomes, not hours. This shift helps both you and your clients focus on what really matters – the results you deliver.
This change in mindset is especially important for service providers who want to scale their business. Whether you’re a designer, writer, photographer, or consultant, packaging your services can help you break free from the limitations of hourly billing.
What Productization Really Means
Let’s talk about turning your service into a product. When you productize, you create a clear, step-by-step process that solves a specific problem. Think of it like a design sprint – instead of billing by the hour, you offer a complete solution with a fixed price and timeline. The key is to focus on the value you deliver, not the time it takes.
Tools for Success and Getting Started
To make your productized service work smoothly, you’ll need some helpful tools. Start with Zapier to connect your different systems. A good CRM like Attio can help you track clients and emails. Type Form works great for intake forms, and you can even add AI tools like ChatGPT to save time. Keep it simple at first – just write a one-page PDF or make a short presentation about your service. Talk to potential clients before building anything fancy. If people ask “When can I sign up?” you know you’re on the right track. Remember, you don’t need perfect videos or fancy materials to start – a simple PDF and a quick video call can work just fine. The most important thing is finding the right problem to solve and creating an offer that fits. Spend your time getting that right, and build the rest as you go.
Pricing, Enterprise Pushback & Design Sprints
If you are able to communicate the value that they will get, the cost is just a cost.
Step 1: Set Your Pricing Mindset
- Focus on value, not hours spent
- Follow Dan Kennedy’s advice: charge as much as you can without smiling
- Remember that higher prices often signal better value to clients
Step 2: Handle Enterprise Client Concerns
- Be ready for clients who want hourly rates
- Prepare clear explanations of your fixed-price value
- Show how fixed pricing benefits their bottom line
- Keep focus on outcomes, not time spent
Step 3: Package Your Design Sprints
- Choose your sprint length (4-8 days)
- Create a one-month package option
- Define clear deliverables
- Set fixed outcomes clients can expect
Step 4: Use the Pricing Formula
- Calculate the time needed
- Multiply your base rate by 2x, 5x, or 10x
- Focus on communicating value
- Price based on results, not hours
Step 5: Communicate Value Effectively
- Highlight the end results
- Share success stories
- Explain your process clearly
- Show how your solution solves their problem
- Keep the focus on their business goals
Leave your comment