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No More Billable Hours: The Case for Productized Agency Services
The traditional agency model is broken. Clients are tired of vague scopes, unpredictable invoices, and the never-ending cycle of "more hours, more money." Agencies, on the other hand, are stuck in a race to the bottom, competing on price instead of value.
The solution? Productized services.
Why Billable Hours Are a Bad Business Model
- No Transparency for Clients
Clients hate the uncertainty of billable hours. They don’t know how much they’ll pay until the invoice arrives. This breeds distrust and makes it harder to close deals. - No Scalability for Agencies
Your revenue is capped by the number of hours you can sell. Scaling means hiring more people, which means more overhead, more management headaches, and less profitability. - Incentivizes Inefficiency
The billable hours model rewards agencies for taking longer to complete tasks. That’s fundamentally at odds with providing great service.
What Is a Productized Service?
A productized service is a pre-defined, fixed-price offering with clear deliverables and timelines. Instead of selling time, you sell outcomes.
The Benefits of Productized Services
- Clients know exactly what they’re paying for.
- Agencies create repeatable, scalable processes.
- Eliminates scope creep.
- Shifts focus from ‘time spent’ to ‘value delivered.’
How to Productize Your Agency Services
- Identify your most in-demand service.
- Package it with a clear scope, deliverables, and price.
- Systematize the workflow to ensure repeatability.
- Optimize for efficiency and profitability.
- Market it like a product – clear positioning, benefits, and differentiation.
Real-World Example: How BRNDLB Does It
At BRNDLB, we don’t charge by the hour. Instead, we offer structured workshops, brand positioning packages, and strategy playbooks – all with a fixed price, clear process, and tangible outcomes. The result? Faster decision-making for clients and higher profitability for us.