Eric Deeran explains why video businesses plateau: they're stuck between cheap products and expensive custom work. The answer is productized services, a repeatable package that lets you scale without losing margin or burning out your team.
What's going on, guys? In this video, we're going to be talking about productized services and why you need a productized service in your video business and how it's going to actually help you scale and not be so bogged down in fulfillment. If you don't know who I am, my name is Eric Diren and I run Master Filmmaker and we've helped 412 video business owners productize their service, implement marketing systems, sales systems, so they can grow their business and ultimately make more money in their company. So let's go ahead and dive in. So what does it mean when you see productized service? You might have seen this before, but what does it actually mean? Well, so there's two different types of offers, right? So there's products and there's services right here. And so a product, let's just kind of go through the pros and cons and features of both, right? So with a product, what you have here is you have. It's easy to fulfill, right? It's scalable, which means that you can do. You can sell a lot of these units without increased effort. And then finally, it's typically low margin. And so there's some pros and cons here. So easy to fulfill. That's a good thing. Scalable, that's a good thing. But low margin is typically not a good thing, right? So that's your product. So this is like think of an E Commerce product or think of, you know, anything you buy at the store that would be considered a product. Now you have over on this side, you have services, right? And so with services, they're typically more custom, they're harder to fulfill. And but the plus side of that is they are higher margin. So if we look at the pros and cons, again, higher margin, that's a good thing. But custom is not a good thing. They're harder to fulfill. And finally, one thing I left off here is they're not as scalable. And obviously that is a con right here. So you have products on one side, services on the other. Now, what does it mean when we say productized service? Well, that means we're right in the middle here. So we're a blend between a product and a service. And the pro to that. Let's talk about some of the pros is typically it's easier to fulfill, right? It's not as easy as a product would be to fulfill, but it's easier than a service to fulfill because it's not customized, right? It's typically a package. A package of Services. Now it's easier. It's medium fulfillment. So it's typically easier to fulfill. Right. It's typically a medium margin. So it's a little bit more margin. It's going to be more margin than the product over here, but it's going to be less margin than the service. But you're giving up margin for scalability because it's not as hard to fulfill on this thing. It makes it easier to fulfill in this thing. It's not as difficult to fulfill on it, which means that you sacrifice a little bit of margin there, but it's still more margin than if you sold just a straight up product. And then the other thing is it is more scalable. Right. So it's a medium amount of scalability because it's in between these two. That's right. Medium scalable. Right. And so it's a medium amount of scalability because it's easier to be able to fulfill in this thing because you're doing the same thing over and over and over again. So think of like a package of videos, like five videos that you sell over and over and over and over again. That would be considered a productized service right here. Right. And so what we want to do with our packages is we want to have a productized service because it makes it easier to fulfill than if you're just doing only custom quoting. You can hire a team to fulfill on this because it's productized. Right. There's medium fulfillment. So then you have your team go out and fulfill. It's easy to pass these projects off to. It's a medium amount of margin. Is it as much margin as if you did it all yourself? No, but that's the whole point is to get yourself out of the business. So then you can have a team fulfilling this work for you. And it is scalable, unlike the services where maybe you're doing something that only you can create and you're only creating a type of content that you can create. So it's not scalable because you only have 24 hours in a day. So now what you have is you can take a call, get a client and then pass them off and sell them a productized service, which would be a specific amount of deliverables or videos. And then you can do that over, over and over again. And what you can do because you have a systematized process is you can actually scale. I don't know if you can see that. Right. So that's the whole point. Right. So when you're scaling a business, you want to have a productized service. You don't necessarily want to have only a product because it's a low margin. While it's easier to fulfill, you just have less margins, like much smaller margins. You want to have a productized service where it's something you can do over and over and over and over again and repeat all the time and it's not fully custom so it's not as hard to fulfill on. So hopefully that makes sense. Let me know if you have any questions that's a little bit about productized services and how we do this with our clients so we can productize our service and actually scale them so they can get more clients and they can make more money without actually having to be involved in the day to day. So if you have any questions on that, let me know. And Shameless Plug if you want to learn more about how to do this in your video business, click the link below and watch a short training on how we actually help our clients do this. So check out that link and we'll see you there.
