As a marketing agency, it is essential to think beyond the traditional productized services model. While this model may offer fixed deliverables, duration, and dollars, it is not the best approach for growing and selling a business. Instead, there is a much better model that can help you achieve greater success and profitability.

As someone who has built and exited two productized services businesses, I have seen firsthand the limitations of this model. While it may be easier to manage and scale than a traditional services organization, it is still difficult to maximize margins and achieve a high valuation when it comes time to sell.

The reason for this is simple: services businesses are valued at a multiple of EBITDA (net profit), while product and technology companies are valued based on revenue. This means that even a small product or technology company may be worth much more than a larger services agency.

However, the transition from services to products is something that any agency can do. With the abundance of cheap coding resources available today, it is easier than ever to develop and launch new products that meet the needs of your market. By leveraging the resources and expertise you already have in your agency, you can create a new business model that offers greater potential for growth and profitability.

Of course, it is important to seek advice and guidance to avoid burning through capital or making costly mistakes. But with the right approach and mindset, any marketing agency can make the transition from services to products and achieve greater success than ever before. So don’t be afraid to think bigger and explore new models for your business. The possibilities are endless!

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