Services vs Products which makes more money & WHY?

Merry Christmas

That's quite a general question. It will depend on what your product or service does.

If either can help solve a problem, then you'll be off to a good start
Is it reliable?
Is it affordable?
Will it do what it says on the tin?

I think if you have a product or service that people need (and want) and are prepared to pay for then the format is not really a sticking point

If you are stuck at this point, I'd recommend doing some research to find out what people need help with.

Take a look in the WSO's forum and see which threads have the most interaction and that will give you a fairly good idea.

Good luck with your project whichever way you go

cheers
Steve

Of course product. Service takes up too much time. With a product, you can automate things...

I personally prefer products: easier to automate, leverage, track metrics, recruit affiliates, etc.

No doubt products as if it goes viral then there is no limit for it.
it can bring you unlimited amount of money

Well for me , its services. Its very difficult, but once you nail it. It can really pay off.

I started from $100 a month to a 5 figure a month business.

So it really depends, currently for me right now its services.

You just need alot of patience a ton of clients and constantly over-delivering for your customers.

Which ever one you are good in is the best.
It depends on you and which among them you can provide quality and value to the customers.

You wont make that much money if you only think about making money. That is why i spent more than a year trying to build products and i didnt make any money.
If you have an idea which will help people and or improve something! This is when you get a reward.
Selling a service is the easiest way to start making some money but sometimes you dont make enough. I can tell you this because i was a graphic designer and it takes a lot of hours working for a simple project. Also it depends how you market your product or services! If you offer a service i would suggest to FB and build relationships with people who might be potential clients.
Well, this is what works for me and is working pretty good for my team members.

My logic here in product creation vs services.

Services takes most of your time if you don't work you don't get paid just like when you are working on your J.O.B

Creating Products takes more time in terms of research, acquiring of knowledge but once your done with your products you can sell them over and over again to different people. Probably the reason why there are lots of info products in the market.

So for me I go for products. that is just my own opinion.

Like Daniel Evans mentioned unless you can be a little more specific the question is kind of hard to answer.

What I can say is that you should try and focus on both depending on your market of course. the online marketing niche is a good example.

A potential consumer can purchase a product let's say and ebook or video course (product) on how to set up a niche wordpress website and get it it ranked for say 5-8 keywords. The same person could also purchase the We Do It for you (service) for 10 times more than the course.

This is why you see through a lot of industries value ladder it starts with a low ticket (product) then goes to a higher ticket product covering the same material but in greater detail t high end coaching (service) and or a high end event (service).

Hope that makes sense.

High Ticket services makes more than products of any kind. If you only provide low-cost services, however, and you don't upsell your clients, you won't make much and will slave away for pennies.

Of course, huge product launches eclipses everything, but they are usually only temporarily successful, affiliate-driven, and only a small percentage of people are able to pull it off and make serious money with it.

For the past year services had made me more money
Answer is pretty simple, people are 100% sure that they are getting something
In products it is a bargain whether it will help you solve your problem (the basic purpose of product) or it will just end up in another refund

Services involves a never-ending work so I think products pays more while requires minimum work and maintenance than providing service.

Whichever one is in greater demand at the time.

Definitely products! Once you've set up a great sales page it can work wonders.

Services you can charge more for, but it's good to use both.

I use info products to sell coaching services.I've sold more info products in 2013, but have made more money with my coaching service just because it is priced much higher.

Big ticket items are the way to go for sure.

Services without a doubt.

$5,000 for one days training.

Well right off the bat with a service you can offer a monthly payment plan resulting in mupltiple payments for one sale. As far as ideas I got a couple of nice ones on my plate. Happy marketing...

Products make more money. Microsoft Windows is a product which has made more money than any service I can think of.

Both can make you a ton of money if you over deliver on your service or products. Unless you charge a hefty fee for your service you are still trading time for money. Products, on the other hand, do not require such an investment after the initial time spent creating the product. You can make millions or hundreds of thousands on recurring ebook sales passively, yet you need to be working, to offer a service. So go with the product I say.

If you do SAAS then service for sure. super low costs. however at the same time if you product is an ebook that is also super low cost. so go with whatever you can make your profit margin the highest

What can work very we'll is to develop supporting material around a service, then turn that into a product - get immediate income off of the service followed by the long-term leveraged income from derivative product.

Basically, a service is a membership. Not all memberships or services require a lot of work. Your autoresponder company supplies a service. The thing about a service is you only have to make the sale one time.

Then you continue to collect weekly, monthly or yearly income from every member. A product is a one time sale unless you have more than one product or have affiliate products you can promote.

You product may make you more money in the short term, but a service probably pulls in more income per member in the long term.

A service or membership is not all that much work as you do the same amount of work most of the time for one member as you would do for thousands of members. That is why you should try to make the end of your sales funnel some kind of service or membership.

I hope this is helpful,
Steve Yakim

You and I both have run into people who sell products without providing a stitch of service.

If you get into selling a product to avoid providing a service, it won't last very long. Meaning, service or product (physical or digital) they are all one in the same.

If you are selling a service directly, remember time for money is just a job. And a sucky job to boot, because you'll be responsible for every other part of the business too.

Instead, I'd be trying to find anything that has some recurring element to it, whether it's product or service - and one that isn't connected directly to a clock or task.

Digial info products (many of them make me laugh) - There is so much top-level, regurgitated PLR flip garbage out there now - my prediction is that SKEEREWED buyer skepticism is going to flat slaughter that method very soon. And that's too bad for those who really do know their stuff and are selling their actual experience - not bogus theories and untested assumptions like so many regurgitating wannabes.

So if you're going to go digital info product, actually provide deep proven value. Don't be a theory regurgitating wannabe.

I'd look into creating a community around your knowledgeable experience. Then sell upgrades to memberships that offer mastermind meet-ups and support.

As an affiliate, I like both.

Can't say one is better than the other. Depends on too many factors.

They're both great.

The type of services you want to sell/promote are services people won't be able to live without once they become a customer - so as long as you get paid a commission on the recurring

That will be one of my goals for 2014 - to have at least 500 recurring sales coming in from all sorts of monthly recurring services.

However, I will not scale back on my product selling at all as I've found from personal experience they are just as easy, if not easier to sell than services.

services makes you money faster while a product works longterm. if you can - do both, start with services if you need money right now, then create your product on the side :-)

The answer is fairly simple, albeit complex in execution - which can you scale up the most?

People often think of service as less profitable because there's a physical limit to how much service you personally can provide. For example, say you're a graphics designer. Working by yourself, you're limited in terms of how much you can produce each day.

But, what if you built a network of 100 graphic designers and managed their work for them taking a commission off the top?

Years and years ago I used to be a locksmith and I maxed out my net earnings at about $80K a year. Then I got smart, invested in more equipment and hired a couple of locksmiths to work for me.

I jumped from $80K to $200K each year after that

Products are also very profitable, but...you need to be able to create one or pay for its creation. You need to be able to do the research and support, etc., etc. - it's just not as cut and dried as make and sell a product.

Make sense?

Although services could earn more money, there is the downside of actually having to invest time into completing the services on your customers behalf. With a product sale, you simply package up the item and ship it out to your customer. Or, you can have some things drop shipped. Other informational products are downloadable so you won't have to do any work beyond posting a downlink link once payment is confirmed. It will just depend on how much time you want to invest into the money making process.

I've had lots of experience in services - they can be tricky online but once you crack it, you can make decent money.

Most recently I started working for Yumbles.com - I've found products to be more straightforward and there are much more you can do with them but the main issue is competition these days, it's huge!