Most consulting businesses start out focusing on Services, and then along the way develop Products accidentally.
They create something to support a project – maybe a market report, or a complex Excel spreadsheet – something that has value beyond that one project. That gives rise to the thought,
We could sell this to others!”
And thus a Product is born. Therefore, in consulting, Services lead to potential Products.
In the world of coaching and online businesses, it’s often the other way around.
For example, someone creates an online course (Product) with the aim of up-selling 1-2-1 coaching (Service) afterwards.
Why create Products?
A Service requires you to spend time delivering it each and every time it is delivered, whereas a Product requires time spent on it up-front, but can then be sold without much or any time being required. However, many Products require Services alongside.
- Product examples: Books, Reports, Apps
- Service examples: Developing a Strategy, Project Management, digital marketing for a client (done-for-you)
- Products requiring services: Implementing a CRM solution for a client – product revenues from the software purchase, on-going product/subscription revenues from the licensing, service revenues from the implementation project, and potentially services revenues as part of an annual maintenance contract
Answer the survey below and see what other consulting business owners are providing.
If you want to learn more about creating recurring revenue through subscription services (a product/service combination), then check out our Comprehensive Guide to Recurring Revenue.
Images courtesy of unsplash and the following photographers: