Products or Services: a choice, a conundrum
As a VA, I’ve been working by the hour for most contracts. I’ve been offering services. But lately the effectiveness of selling products has been hard to ignore.
Yesterday, I was privileged to participate in a teleseminar given by Allison Nazarian. Exceedingly well-organized and articulate, Allison made many valuable points during the call, which was focused on improving business practices amongst copywriters.
One of the several aspects of the call that impressed me was Allison’s willingness to state her strong opinions, with total respect for others, but without apology. So many over-polite presenters tell you all about the options, but offer no actual guidance. Another cool thing about strong opinions is that they make sharing opinions something that’s okay to do. Peeps may disagree with you, but if you don’t share your beliefs, how can anyone benefit by them?
That said, I’m devoting this post to an examination of one of Allison’s opinions, because it’s an issue I’ve been pondering for my business as well. Most of my work centers on writing and editing or on social media marketing. So the question here is, am I selling products or services?
You may wonder what difference it makes. Often, the distinction is obvious. If you provide widgets, you sell a product; if you drive a taxi cab, you sell a service. But for such people as virtual assistants and copywriters, the definition blurs.
Take a look at this recent article from Dean Rieck, evangelizing the service term. The author goes so far as to say that telling people you provide a product, if you’re copywriting for them, makes you more like an employee than a contractor. I wonder if he would make the same suggestion to virtual assistants.
But a few days ago, I read an article by C.J.Hayden in which she made the opposite claim, saying that packaging your services as products will boost your sales and credibility enormously. (I’d give you the link, but after 30 minutes of searching for it, I’ve given up.) Allison Nazarian, in the call yesterday, shared Hayden’s viewpoint.
It’s difficult to sell your work by the hour, since that’s asking the client to take a risk, betting that you’ll deliver as you promise. Customers can kick the tires of your widgets before they buy, but services – by definition – don’t exist at all until they’re paid for, or at least under contract.
You can package your widget as a service providing happiness: you don’t sell a bed, for instance, you sell a good night’s sleep. On the other side, you can package your service as a product providing tangible returns: for example, you don’t sell virtual assistant services by the hour, you sell newsletter production or reports from competitive market research as products for flat fees.
Lawyers charge by the hour; doctors charge by the operation. Artists get paid for their products; consultants get paid for their time. Hmmmm …. Does this issue tangle up your brain the way it does mine?
I’ve lately caved, and structured a few of my offerings as products on my websites. A hefty chunk of my work remains in the service category, however, for now. I’m really curious: whether VA or other business person, do you sell products or services? Have you thought about the distinction, and the difference it could make to your sales? Please comment!
