Do you know why H&R Block became so successful? They took an arcane service like Taxes and turned it into a product. They packaged the services into different products with increasing price and created accounting software to streamline the process. In short, H&R Block productized their service.
You should “productize” too.
Many people hesitate buying services on the internet because they don’t know what they’ll get. They’re dealing with something new and they have no way to assess its value. Marketers overcome this by productizing their service. They take the necessary steps to turn their intangible service into a tangible product.
Yet, there are thousands of bloggers selling their services the wrong way. They charge hourly, fail to specify benefits, and keep their service or consultation as arcane as possible.
But, do bloggers keep their service arcane to hide what they do?
No, not always. There are several great bloggers offering great services. They write great blogs and offer great value. Unfortunately, they are limiting their success because they are not selling their service the right way. They are leaving good, profitable clients on the table and losing them to people with lower pricing, and lower quality.
Now lets help you grab those extra clients.
Service Product Packages
Don’t offer “blog coaching.” Instead, offer specific “blog coaching” product packages. For example, “Crafting Killer Headlines,” “Working Social Media,” or “Increasing Blog Traffic in 30 Days.” Not only will this keep people more interested, they will know exactly what they’re paying for and exactly what they’ll get.
(Bonus: Many large corporations demand product packages so know they know they’re paying for).
Create Tangible Products
Don’t expect clients to take notes throughout your consulting session. Instead, give them key takeaways. For example, send them a PDF of “Next Action items,” or “Things to Remember,” or a “consultation summary.” While you run the risk of people sharing it without your permission, you will create several happy customers who will be willing to use your consulting services again.
Offer Free Samples
The internet shareware industry used this to the max. They offered 30-day free trials so people became accustomed to using their software and then asked them to buy it. This increased sales substantially.
So, once you create your service product packages, create a bare-minimum free product package to get people interested. Please note, a regularly updated blog can be considered a free sample and so is a free e-book.
Don’t Charge Hourly
Personally, I hate hourly charges. I always think, “are they padding their hours” – even with reputable companies. This means I go into a sales call on the defensive and the salesman needs to break through my defenses before I’m willing to buy. It is just plain uncomfortable and is a huge waste of time.
You are the expert. You are selling the consulting services. Once you productize your service, you will know how long each project will take since you will be using the same process. This allows you to charge per project instead of per hour.
Offer Testimonials and User Feedback
One of the reasons eBay became the largest online auction website is because they used user-feedback to determine the credibility and trust of buyers and sellers. When you’re packaging your service, you can do the same exact thing.
You should create a forum where you encourage your clients to write honest reviews of your service. Additionally, encourage them to write what they didn’t like about your service. Remember, the world of selling is changing since everything is transparent, so you might as well be the person offering the transparency. This will show you have nothing to hide and immediately build trust with potential clients.
Offer Specific Promises
If you’re not willing to “productize” your service, you need to offer specific promises because people need to know what to expect. For example, while SEO masters can’t guarantee #1 rankings, they can guarantee some number of links or exposure.
The Open Challenge
Are any of you making a living off of services like consulting or coaching? I dare you to justify the way you are currently running your consulting or service business if it doesn’t conform to these best-practices.
{ 13 comments… read them below or add one }
This is great info but not charging by the hour didn’t work for me. I used to charge a flat fee but clients would not be there or show up late, get on the phone, etc. When I started charging by the hour, they stay focused and we get it done. I’m able to give them a good estimate upfront because you’re right about knowing about how long things will take.
@Peggy I hear where you’re coming from. However, you can still charge a flat project fee and then add additional costs for late fees or last minute cancellations with no notice. This is up front and keeps the flat fee model working great.
Great post and turning hourly services into packages or products does make it easier for customers.
I work as a coach and basically charge per session (an hour each). But I usually sell a package of six sessions based on the experience that it works well to during that time achieve what clients want.
Hi Derek, I do charge a no show fee and the clock starts ticking at our appointment time. So if they want to slack off while I’m there it’s up to them. But what I don’t like is my time being wasted. And I’m also teaching them not to waste their time (I’m a personal productivity expert). We agree upfront that when it’s time to work, we have to work and get it done. I prefer to keep everything simple and this has worked for me.
@Bengt – That’s a great idea. Do you have a list of things that you expect to accomplish in those sessions?
Thanks! This is a great post and ideas. I just wondering if too many people offering the same package, how can you differentiate yours compare to others.
@Kenny While several people may offer the same service package, your key differentiators – the thing people will print out and show other people, will be what you give your client to take away from the consulting session. It will be hard for competitors to duplicate that since it won’t be posted on your website.
Great post Derek =)
Hourly is great for the company but not for the customer because companies can take a bit longer to finish everything to get extra $$
while….
not hourly is great for the customer but not for the company because if the customer makes the company work longer, the company doesn’t get $$
Is there a compromise?
Derek asked Do you have a list of things that you expect to accomplish in those sessions?
In coaching the client sets the agenda and it can be changed during our sessions. Still, over six sessions with two weeks interval I have learned that they can accomplish what they want. All it takes is presence during sessions and action in between
@Bengt Thank you for having the conversation. You gave me some good insight via e-mail. Additionally, keep up the good work.
You make some great points here, but does it work for public relations? The industry I work in. I’m not sure. I think there’s some things we can turn into products, such as media kit “how-tos”. But there’s so much social science that goes into drafting a communication plan, that an expert is really want an organization needs. If that professional is a staff employee, great! But, if he’s a hired gun? The company will pay hourly, just as with attorneys. Nonetheless, excellent fodder.
@Rodger Of course it works for public relations. You can write media kits, draft public relations release, guarantee X amount of press contacts, include X amount of prepackaged communication letters.
Even with lawyers, they charge per job. Sure they charge hourly, but one of the main reasons they do that is to extract more money from their clients. It is simply more profitable, but it isn’t in the best interest of their client.
Even lawyers are starting to sell product packages.
Hourly fees are used by amateurs with low self-esteem who don’t understand you aren’t selling your time, you’re selling value. And because they do not believe in their value – or can’t communicate it (same thing) – they have to settle for being treated like a commodity – which they are.
The type of business is irrelevant.
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