With the growing popularity of online courses, products, and programs, you may feel pressured to start selling a digital product. In the last decade of working with business owners, I’ve seen behind the scenes of countless online product launches and witnessed the months of planning, content creation, and marketing required to productize services. 

But, how do you know if you’re ready to turn a service into a successful digital product? Here are three signs that you’re ready to productize your services online:

1. People Are Asking You for It

Productizing is the process of turning an idea, skill, or service into a marketable product you can sell to the public.

If you already have customers asking for a specific product or service, it’s time to take note. But first, test interest before investing your time to ensure that market demand will support your new offering.

For example, set up a simple landing page that outlines a product and its benefits, then collect sign-ups or payments. If you don’t get a lot of interest, you may want to consider a new direction.

2. Your Service-Based Business Is at Full Capacity

If your schedule is packed with clients and there’s very little wiggle room, products can be a way to free up time and diversify revenue. You could reduce the availability of one-on-one services by creating a digital product that acts as an introductory self-guided offering.

For example, if you’re a social media manager, create an online course to teach business owners how to manage their social media at a lower cost than your one-on-one services.

3. You’re Giving the Same Advice Over and Over Again

If you’re repeatedly giving the same advice, consider creating a digital product to speed up and streamline your workflow. These digital products could be used to save time and add value – you don’t necessarily have to sell them directly to customers.

For example, create a digital resource library for new customers. This could become a paid digital product once you’ve had time to work with users and get feedback.

Reasons You Might Not Be Ready to Productize Your Services

Here are some signs that you might want to reevaluate productizing a service:

You Don’t Have a Lot of Service Experience

Online product success means knowing the needs of your audience. A huge part of that is a willingness to have conversations, interviews, and an overall connection with your ideal customers. Once you’ve gotten enough service experience, you’ll be able to spot opportunities and gaps in the market more easily.

You Don’t Have Stable Revenue

Digital products aren’t necessarily a “set it and forget it” source of income. If you’re reliant on a digital product to pull in your required revenue, you’ll need a large customer base. Services are the quickest way to draw in revenue, while products are a long-term return on investment.

You Don’t Have an Audience

Without an audience or network that knows about you, your business, and your products or services, you won’t be able to sell your product effectively. Become an active participant in conversations about your industry. Whether blogging, speaking, or podcasting, make yourself known.

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