Julie Johnston of 327 Creative spoke at the August 2009 Member Meeting about selling products as a supplement to a service-based business.

1. Selling Products as a
Service-Based Business
Julie Johnston, 327 Creative

2. The Situation
Every client is unique. Every price is unique. Every
project is unique.
Every sale is a personal, one-on-one transaction.
There’s a process, but it can be inconsistent and
inefficient.
Margins on services can vary depending on the
project, so income is hard to measure consistently.

3. The Alternative:
A mix of service and
product offerings

4. OPTION #1
CONVERT EXISTING SERVICES TO PRODUCTS

5. Why service-based
products?
Efficiency: Ideally, you already have a process or
infrastructure in place.
Familiarity: These products are closest to the
things you’re already selling.
Profitability: Existing clients become qualified
leads for new offerings.

6. What to sell
Something you’re passionate about
Something that makes you unique or sets you
apart
Something you can easily outsource or automate
Something you’re already doing

7. Examples
Designers and Developers: web hosting, e-mail
marketing, social networking, search-engine
optimization, advertising campaign management,
templates
Photographers: retouching, wall displays and
space planning, mounting and framing
Copywriters: style guides, canned e-mail
responses

8. PhotoCart
Install on your own
Web site
Use lab of your choice
for fulfillment
Set up packages,
private galleries, etc.
One-time fee (no
subscription costs)

9. iStockPhoto.com
Audio, video, photo,
vector
Must pass portfolio
review to sell
Earn more on exclusive
files
SEE ALSO:
veer.com
fotolia.com
shutterstock.com

10. ThemeForest.net
PSDs or coded
versions of Web site
templates
Earn more for exclusive
files
SEE ALSO:
FlashDen.net
AudioJungle.net
VideoHive.net
GraphicRiver.net

11. Inkd.com
For print designers
Connected with
customer to modify
design
Specs provided so
templates are
consistent

12. CampaignMonitor.com
White-label admin
You can offer
templates, or let
customer go to town
CM handles billing, you
decide mark-up

13. OPTION #2
NEW PRODUCTS - BUSINESS OR PLEASURE

14. Bestsellers?
Info Products
Low start-up costs
Quick to create, quick to market
No inventory to worry about
Delivery can be automated
Immediate gratification
No “shipping and handling”

15. What are
“Info Products”?
eBooks
online training and education
videos
recordings
electronic templates
software
fonts
icons

16. Examples
Designers and Developers: “Photoshop Basics”
eBook, CMS training videos, frameworks and
internal applications
Photographers: Actions and presets, marketing
plan
Copywriters: Travel guides, grammar podcats
REMEMBER: In the world of products, your
competition can be your customer.

17. Not into info?
Get creative
Always wanted to start a clothing line? Get your
feet wet.
Friends ask about that cool poster you designed
for your office? Sell them one.
Love to craft? Craft in bulk.
You get the idea.

18. Lulu.com
Publish both digital
and print versions on
demand
Can also publish digital
media (CDs, DVDs)
SEE ALSO:
Blurb.com

19. E-junkie.com
Integrate lightweight
cart into existing sites
Flat monthly fee (no
bandwidth limit)

20. Imagekind.com
Upload, set price, done
Earn commission on
finishing
Facebook Connect
Premium accounts for
more customization
(starts at $7.99 a month)
SEE ALSO:
redbubble.com

21. Etsy.com
Handmade, vintage,
supplies
Insertion fees similar to
eBay
Innovative navigation
and active community
SEE ALSO:
100markets.com
supermarkethq.com

22. CafePress.com
Insane number of
products
You set mark-up
SEE ALSO:
Zazzle.com
Spreadshirt.com
Printfection.com

23. OPTION #3
SELL JUST ABOUT ANYTHING

24. The drawbacks
Inventory
HIghest up-front costs
Labor and maintenance
Possible equipment and development needs

25. The advantages
Established brands, often with their own marketing
Decent profit margins
Less pressure to be creative
Can help sales of your own products

26. BigCartel.com
Your products, their
backend
Free to $19.99 a month
Limited # of products
SEE ALSO:
Shopify.com

27. Mpix.com
Photos and high-
quality image printing
White-label drop ship
Wholesale pricing
SEE ALSO:
whcc.com
bayphoto.com

28. PinballPublishing.com
Allows ganging of
designs
PMS and CMYK soy
inks
SEE ALSO:
uprinting.com
jakprints.com

29. Shopping Cart software
Not for the faint of
heart
Follow security
guidelines
magentoecommerce.com
cartkeeper.com
zen-cart.com
oscommerce.com
ubercart.org
virtuemart.net

30. Shopping Cart software
Features to look for:
inventory management
easy-to-customize design
search engine friendly
product options (size, color, etc.)
integrates with merchant account/payment
gateway
in-store marketing

31. ShipWizz.com
Get up-to-date
shipping rates based
on location, package
weight and dimensions
USPS, FedEx, UPS

32. ShopFluff.com

33. POINTERS
WHAT TO DO, WHAT TO AVOID

34. FREE!
Hooks the buyer and primes the pump
Generates referrals
Make sure you can “afford” it
Simpler product, faster to produce, quicker to
market - buy time for other product development
Upsell with paid products - tiered approach
Top tier is “ideal” customer - the whole enchilada

35. Bargain hunters
eBay
Craigslist
Auctions won’t allow you to sell a “premium”
product at a “premium” price

36. Tips
Beware of “hidden” costs - COGS, time,
marketing, shipping - that can eat at profits.
If a product costs too much to make to price
competitively, it’s not a good product to sell.
If you need raw materials, get a sales tax license
and buy wholesale (and bulk).
Consider the entire product cycle - if you sell a
small product and a large product, you need
shipping materials for both. Labels, packaging,
etc.

37. Tips, continued
Is it cheaper to pay someone else to produce it
than to do it yourself? If it is, let them.
Don’t price too low simply to be the cheapest -
you’re sending a message about quality.
Be consistent - do speed metal MP3s and bible
study outlines belong in the same storefront?
What message do out-of-stocks and sporadic
availability send?
Target high-value product - unique, exclusive,
luxury, not something you can get anywhere.

38. Tips, continued
Cover a range of price points - there’s something
for everyone. Also a marketing tactic - even if your
price points are higher than you can afford,
someone will feel like they “saved” if they don’t
end up buying the most expensive item.
Price for quantity

39. Caveats
Competitions suck - don’t work on spec
Remember your brand
Building it doesn’t mean they’ll come