Services vs Products which makes more money & WHY?

by seeyou
46 replies
Mery Xmas in advance. Yeah I have been thinking for some hours now to either create a product or a service for next year. I do this every year at list create a product or service at list one.

So I decided to ask you my fellow warrior. Services vs Products which makes more money & WHY?

Please your honest option is greatly appreciated.
#makes #money #products #services
  • Profile picture of the author Steve King
    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
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    • Profile picture of the author seeyou
      Thanks for the input. Unlike products one those not have to be activly involve but services one will be activly be involve.

      So I do more of services than products. I was thing to develop products as you said to solve problems from my current 40 skills so far.
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  • Profile picture of the author garyt
    Of course product. Service takes up too much time. With a product, you can automate things...
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  • I personally prefer products: easier to automate, leverage, track metrics, recruit affiliates, etc.
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    • Profile picture of the author seeyou
      Originally Posted by Anonymous Affiliate View Post

      I personally prefer products: easier to automate, leverage, track metrics, recruit affiliates, etc.
      Thanks man. I really appreciate your input. I have add urgly past exprence in the past why the demand was so much I had to refund and shut down the service membership site. I will share the story later on.
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      • Profile picture of the author thriftgirl62
        Consumable products with repeat buyers that use those products, run out and have to buy more to get the job done. For example: http://www.productioncarcare.com/videos/like_equal.swf

        Deal directly with the manufacturer or make the products yourself because there is not enough mark-up when you go through places like SaleHoo, World Wide Brands or other directories. You would become a distributor with your own business, customers, billing and inventory unless you find novelty items that can be drop shipped.

        Services are limited by the 12-16 hours of time you have each day so you would need to hire several skilled employees to make any real money with services. Or, do both by providing a service using the products you manufacture or buy wholesale and bill at retail.
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  • Profile picture of the author Tania Edwards
    No doubt products as if it goes viral then there is no limit for it.
    it can bring you unlimited amount of money
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  • Profile picture of the author Deeno Zee
    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.
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    • Profile picture of the author seeyou
      Originally Posted by Deeno Zee View Post

      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.
      This is a great news. I am still between selecting a products or service to create to add to my list of solutions provision.
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  • Profile picture of the author datingworld
    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.
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  • Profile picture of the author Horacioplus
    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.
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  • Profile picture of the author Marked09
    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.
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    • Profile picture of the author agmccall
      The one that you can sell more of

      The reason is....you sell more of them

      al
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      • Profile picture of the author Daniel Evans
        There's no contrast unless you define each one specifically.
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  • Profile picture of the author romesaranto
    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.
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    • Profile picture of the author Marked09
      Originally Posted by romesaranto View Post

      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.
      This totally make sense. Thanks for pointing this out!

      Big company and successful marketers offer both. one example that I can think of is they will usually offer you $10 - $20 products and they will market you back-end with high ticket such as coaching program , copyrighting services etc. (takes more time and needs constantly personally involved)

      However there are also well established company who sells high priced Info products / membership sites that is priced above $500.

      Nevertheless ignoring one option to earn more means you are leaving lots of money on the table. I guess we just need to assess that market and choose whatever strategy will work on our own advantage and skillset?
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  • Profile picture of the author Joan Altz
    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.
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    • Profile picture of the author seeyou
      Originally Posted by Joan Altz View Post

      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.
      Yeah I agree with you. Using upsell to get more money out of client. I do that mostly offline.
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  • Profile picture of the author xpesos
    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
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  • Profile picture of the author Adie
    Services involves a never-ending work so I think products pays more while requires minimum work and maintenance than providing service.
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  • Profile picture of the author JRJWrites
    Whichever one is in greater demand at the time.
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  • Profile picture of the author Lightlysalted
    Definitely products! Once you've set up a great sales page it can work wonders.
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  • Profile picture of the author nicholasb
    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.
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    • Profile picture of the author Daniel Evans
      It's worth considering tying in a service with a product as an upsell - assuming that's possible (and it usually is, if you put your mind to it).

      WP plugins for instance; you can offer an installation service. There will be customers regardless of the simplicity of it and you could offer to cprecision calibrate it for the clients website.
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  • Profile picture of the author John Romaine
    Services without a doubt.

    $5,000 for one days training.
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    • In some instances (both in B2B -- Business to Business -- and B2C -- Business to Consumer -- markets), integrating services into products could generate consistent scalable profits. For example:

      Developing system optimization software with 24/7 technical support services and free product updates and upgrades for a reasonably competitive annual subscription price could generate consistent scalable profits, while still providing room for:

      • Upselling more system optimization tools;
      • Expanding to system security applications; and
      • Offering custom software development services to B2B markets, especially if your company has by this time a portfolio of excellent software products and a solid reputation of providing helpful products and world class support services...
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      • Profile picture of the author seeyou
        Originally Posted by Marx Vergel Melencio View Post

        In some instances (both in B2B -- Business to Business -- and B2C -- Business to Consumer -- markets), integrating services into products could generate consistent scalable profits. For example:

        Developing system optimization software with 24/7 technical support services and free product updates and upgrades for a reasonably competitive annual subscription price could generate consistent scalable profits, while still providing room for:

        • Upselling more system optimization tools;
        • Expanding to system security applications; and
        • Offering custom software development services to B2B markets, especially if your company has by this time a portfolio of excellent software products and a solid reputation of providing helpful products and world class support services...
        Thanks, this was a topic I spoke about as a core topic during my seminal late 2013. You sounded so professional and also a solution provider and system developer.

        Thanks man. Niche to meet someone in similar filed.
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    • Originally Posted by John Romaine View Post

      Services without a doubt.

      $5,000 for one days training.
      But with products you can make $5,000 every day without having to repeat the same training day after day.
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      • Profile picture of the author Adie
        Originally Posted by Anonymous Affiliate View Post

        But with products you can make $5,000 every day without having to repeat the same training day after day.
        So true. Fore example, an online teacher can create a solid course, have a website and sell and use her time on other more productive things, than staying online and teach and teach and teach... An English teacher online can earn $150 to $250 a day but she can earn more if she has a solid product (let say $60/course module) and make 5 sales ($300) without even staying online.
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  • Profile picture of the author EPoltrack77
    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...
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  • Profile picture of the author Ripster
    Products make more money. Microsoft Windows is a product which has made more money than any service I can think of.
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  • Profile picture of the author ryanbiddulph
    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.
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  • Profile picture of the author automationhero
    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
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  • Profile picture of the author jbsmith
    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.
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    • Profile picture of the author Jeff Schuman
      Here is something to consider.

      - When you sell a product your work is over.

      - When you sell a service your work is just starting.

      I don't think either is superior to the other, but unless you outsource a lot of the work selling a service can become more like a job then selling a product is.
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    • Profile picture of the author seeyou
      Originally Posted by jbsmith View Post

      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.
      You are right but this also works around a products. Let use this as example.

      You got a Microsoft Word 2013 and you where used to 2003 and for the first using it you can't figure out how to use it. But some guy who have gone through it and created a video tutorial on how to use it and shortcuts around it.

      So you will certainly buy it to ease the using of the application.
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  • Profile picture of the author yakim1
    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
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  • Profile picture of the author garyisonline
    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.
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    • Profile picture of the author Neromancer
      Originally Posted by garyisonline View Post

      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.
      Seems like Gary is on a role here - guess guys from CO get the whole delivery of service WITH good products . . . At least I agree with him here and agree with his prediction. Excellent post.
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  • Profile picture of the author jasondinner
    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.
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  • Profile picture of the author Monja
    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 :-)
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    • Profile picture of the author honestim
      Depends on what state of maturity you are in with your business. IMO the intention should be to have as much automation as possible to leverage on technology. But that will not happen instantly. So if one is just starting off I would say the bulk of the business would come from services and then over a period of time products should be introduced to the offering and once the business is mature enough the product side should be contributing a big proportion of the income to give you the freedom that IM can bring in to your life.

      HonestIM
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  • Profile picture of the author BIG Mike
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    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?
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  • Profile picture of the author Samuel Adams
    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.
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  • Profile picture of the author jameskay
    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!
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    • Profile picture of the author Jeffery Moss
      Originally Posted by jameskay View Post

      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!
      Yumbles is a good one for UK sellers. Etsy would be the American equivalent, though as you said, the competition is intense as there are so many talented bakers and artisans on the site.
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