# How Productizing My AI Services 10X'd My Revenue (Copy Me)

## Метаданные

- **Канал:** Nick Saraev
- **YouTube:** https://www.youtube.com/watch?v=itA4M364nd8
- **Дата:** 06.06.2025
- **Длительность:** 36:04
- **Просмотры:** 17,202
- **Источник:** https://ekstraktznaniy.ru/video/11979

## Описание

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Summary ⤵️
3 simple yet high-value AI automations that coaches will gladly pay $1.5K for — even if they sound boring. These aren’t flashy, but they solve real problems and sell easily.

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## Транскрипт

### Introduction []

Today I'm going to show you the exact productization framework that allowed me to double my AI automation agency revenue while also cutting my workload by 80%. This is a tested system that transforms custom and very time-intensive AI services into streamlined and much more scalable offerings that I like to think practically sell themselves. If you're new here, I'm Nick. I scaled my own AI and automation agency to 72K per month. In using this exact framework, I've also helped thousands of people in Maker School, my day-by-day AI automation agency accountability roadmap, transform their chaotic custom services into productized machines that generate consistent income without also requiring you scaling your attention. Without further ado, let's dive in. So

### What is productization & how does it work? [0:37]

productization may seem kind of intimidating, a lot of syllables, big scary word, but it's really not. All productization is it's basically where you transform a custom timeintensive AI service like a custom CRM build or a custom lead genen system build or hell one of the million custom builds you guys have probably already done into a standardized repeatable offering by giving it clear deliverables fixed pricing and then a defined scope. Okay, that is the definition that we're going to be rolling with. I'm going to show you exactly how to do it in a few moments. We're actually going to take an example system and I'm going to walk you through the whole process. Now the fundamental shift in productization happens when you move from this I'll build whatever automation you need where you're basically like an AI automation service provider as like an identity like that's almost your product into hey here are three specific AI service packages with exact deliverables and timelines and then if the customer needs changes or they want minor alterations to the system what you do is you take that thing that package they just make some minor adjustments to it okay you don't actually start from scratch what you do is instead of going from zero to 100% every single time you start a system. No, no. We start at 80%. And then we go to 100%. If you think about it, this is a distance of 20. 100. Therefore, our productized approach is about five times the leverage. So, why do productization? It eliminates what I call the three silent killers in AI service. The first is scope creep, which is where clients continuously add requirements to a fixedpric project. Uh for those of you that don't know, there's kind of two major ways to price. There's hourly, where you charge based off of the hour time that it takes for you to do the work. And then the other is fixed price where you basically just give them a price. Usually guarantee project delivery within a time frame at that price and then the client either pays you a deposit or do some sort of milestone trunch system. But when you do a fixed price system, which is where all the money is, a big issue is scopes tend to creep. Customers want additional things added. Hey, do you mind adding this? adjusting this? Hey, I changed my mind about this. Could we redo this? Now, clients continuously adding requirements obviously means more work for you. And this is a major problem that a lot of people have that productization solves. Another big issue is variable delivery times. Like, let's be real, we are dealing with a technical service here. As untenical or non-technical as I try to make it out to be, obviously AI and automation, you know, these are technical things. And with technical things, you can't always be 100% sure that the custom service that you're going to deliver is going to work out the way you envision it. APIs aren't going to work. You'll have weird bugs and one-off errors. They're always just some sort of bumps in the road that you might not be anticipating. And finally, inconsistent pricing. Like pricing is one of the biggest issues that I've come across in my time in AI and automation as well as coaching and helping other people do it. You know, there's a lot to be said about pricing, and I've talked about it for many, many hours on several other videos, which I'll make sure to link right around now. But to make a long story short, rather than having to price every single time you get a new deal, which is a fixed cost to you in terms of your time and energy that you have to do every single time you have an opportunity, productization just allows you to do it all automatically. So, how do I think about productization? Productization is almost like automating automation. It's almost like meta automation, okay? It's automating automation as a service. And what you're doing is you're taking automation as a service and you're almost moving it down here to automation as a product instead. And when automation is a product, then you can do the same things that most people do with products. They scale them up. They optimize them. They iterate them. And then ultimately they make them better over time. So here's what not to do. Most AI service providers operate reactively. They take whatever requests come in and then they create custom solutions each time. That just means they're essentially rebuilding the same system repeatedly with minor variations. Instead, when you productize correctly, you will get to maintain the appearance of providing customized services, but you're actually going to deliver very standardized solutions because you're focusing on outcomes rather than the implementation. If that sounds like witchcraft to you, stay tuned. I'm going to explain it all in a second. So, some personal tips just right off the bat. Use client language in your package descriptions. Do not use technical jargon. Start by productizing your most commonly requested services first. Include specific metrics or outcomes clients will achieve. Then finally, bundle services that naturally complement each other. Let me give you an example of productization. A lot of people in automation or other industries sell a lead genen services. And so this is where we'll start. Okay? Throughout the rest of this video, we're going to be productizing this. And then this is where we're going to end. instead of a lead genen services which is vague and variable pricing and it leaves so much open to interpretation. Instead, what we're going to do is we're going to build a retainer service with full campaign setup, copywriting, around the clock management and appointment setting that includes 10,000 high-quality leads scraped per month, one 45minute weekly strategy session, daily Slack Q& A availability and team training Monday to Friday 12 till 2, then a monthly report on leads generated meetings booked outcomes and actionables for $3,770 per month. This is sort of the dividing line between a service and a product. And when you sell a service provider mentality over here versus like a product creator mentality over here, when you transition from this to this um this is how you scale explosively. And this is what basically any major service business that does over maybe 20 or $30,000 a month um has to do. Okay? And the reason why is because think about this. This is your return. return just means like I don't know money or whatever. And then this is time the service that you're selling right now. Odds are if you're doing a custom service like most people are and that's okay. I recommend doing a custom service if like you're just getting the ball rolling on an automation agency. If you're a total beginner, selling a custom service is really easy and it's fine to do for your first couple of gigs. Don't like let that stop you from getting started. Okay? Cuz that's the real issue here, like not getting started. But if you're selling a custom service, typically what ends up happening is you put in one unit of work here and you get one unit of return here. Then you put in another unit, another another, another another. And so what I'm trying to say is there's like a one to one relationship between the amount of time that you spend and then the return that you get. Now this is fine because you know if the slope of this line is like really really crazy like this, then that's all right. But here's what productization allows you to do. Instead of having to do this sort of super linear flow, what we can do instead, and I'm just going to put our productized solution here in blue. Oh, nope. I'm going to put it in blue for Christ sake. Okay. Nope. I guess I'm drawing my own line. What we do is we put time in initially to do the productization and we get very little return. And then what ends up happening? Well, right after we productize, our revenue, our return scales significantly better per unit time. And so initially there there's kind of going to be this difference here where just getting up and running with custom services is going to make more money than productizing but very shortly I mean this might be I don't know like 2 weeks or something very shortly after product dies is going to make way more money over the long term and that gap is just going to continue to grow on and on as your agency gets bigger and better. So hopefully now I've sold you on why to product dies. Let's now chat a little bit about how to actually

### The process of productization [7:46]

go about doing the productization. Okay, this is more or less the process. You identify your most common service requests. You define the deliverables. You set fixed pricing tiers and then you create a standardized process with scope boundaries before systematizing delivery. Once you're done with that, you basically have a money printer, assuming that obviously you can take care of the client um acquisition side of things, which is very big. And this is what we're going to be talking about for the rest of the video. Okay, so let

### The problem with traditional AI service delivery [8:09]

me share with you guys a quick story. before I productized and I productized pretty early, God bless, but my AI business was plagued by this custom trap where, you know, I'd hunt and I was very good at it. I'd hunt for clients and I'd try and acquire clients, put a lot of effort towards it and it was successful. But I found that, you know, while my revenue would spike quickly, it would also then quickly level off because the distance between here to here was me getting a client, but then, you know, basically between here to here, what I what was I doing was fulfilling that client. And so fulfillment ended up being the main bottleneck. Most people as lead genen, I solved lead genen, ended up being fulfillment. And the reason why is because I was creating these bespoke solutions. Bespoke just means custom. Because of that, you know, every time I take on a new job, the amount of work that I have to do is kind of non-standard. Sometimes it actually takes way longer. Other times it's way shorter. And because I was unstandardized, I spent about 70% of my time on non-revenue generating activities. This was bunch of discovery calls, scope revisions, custom proposals that were basically educated guesses. And then client expectations were also constantly out of alignment because every project that I did with people was treated as a totally unique project and then you know there was obviously like a big revision cycle where I would do something and then they would have to Q& A it and then you know I would just go over and over and over again. What that meant is successful projects couldn't easily be replicated because every solution was super custom. That hurt my ability to leverage past work for future clients which is a great benefit of productization. Then my margins were also unpredictable. Sometimes I made like 80% on a deal and that's awesome. I gave 80% gross profit. Hell yeah. But actually I had a couple of situations where, you know, the scope creeps so much and I was doing so much work that I actually lost money on deals. Okay? And that's not even taking into account the amount of money it took me to acquire them in the first place. So rather than swinging back and forth between this super crazy, you know, upswing and then that super crazy downswing, I decided to productize. And so if you're in this situation, I recommend it. If you can't confidently state how long it's going to take to do something, you should productize. If you work weekends to complete projects cuz sometimes they go over, not every weekend, but some weekends, you should productize. If pricing is basically guesswork for you, just throwing stuff at the wall, you should productize. And if you find yourself recreating similar solutions with minor variations, you should definitely productize. This is like the custom approach, which everybody is doing, where they receive an inquiry, create a custom proposal, negotiate the scope and price, begin development, then there's scope changes. Usually there's some sort of scope creep and then you just continuously go through the cycle over and over and over again until your hair turns much grayer than mine. So how do we solve this? Here is a productization

### Productization framework for AI services [10:37]

framework for AI services. What I want to do is I want to take this lead genen idea that I shared with you guys initially. You know I do a lead genen and I just want to convert it into uh that sort of productized package that we saw earlier. And you know, I'm doing this in kind of like a hopefully you guys could tell the production value of this video is not super crazy. I'm doing this as sort of like a brainstormy way because I think that there's actually like five or six different ways to productize your service. And I'm not going to make a video going over each. But I just wanted to narrate my thoughts out loud while I do this. Hopefully that'll give you guys some insight. Like I don't just want to tell you stuff. I'd rather also show you cuz I think that's just as instructive if not more. So yeah, how do we actually do it? So we start by deconstructing your deliverables into specific tasks. What we do is we break the big promises. I'm going to generate leads for your business. I'm going to make you money into some sort of actionable component that can be systematically executed. This sounds scary, but let's run through it. Okay, another thing I'll mention is we should approach this step by working backwards from each deliverable. We shouldn't actually work forwards. And then what we should do is we should identify discrete tasks alongside that. So let's actually run through what this looks like. If my you know service over here is lead genen, what are the deliverables that come from lead genen? Now, to be clear here, a deliverable is something the client sees. It's something the client touches. can interact with. Obviously, we're on the internet, so seeing and touching and feeling, these are um sort of approximations of the truth, but you know, there there's something tangible. Okay, lead genen is pretty intangible. But you know what's tangible? Leads. Leads are tangible as hell. But what is a lead really? Like to a client, what is a lead? If you think about it from I mean the client perspective. When you generate a lead for a client, how are you notifying them of the lead? Let me give you some examples here. An email is the deliverable upon which your lead is packaged. So that's one example of a deliverable. Maybe every time that you generate a lead for your client, you send them a quick little email saying, "Hey Pete, new lead uh generated. This person is super interested in your service. Here's a quick breakdown or description of whatever that is. " Actually, if you think about it, this is the service. This is the kind of like more deliverable version and then this is like the hyperd deliverable version, the thing they actually see in touch. Um, what's another thing? Maybe like a Slack notification, right? A lot of people use Slack here. Maybe we use Microsoft Teams, Discord, whatever. This is just like some service. What else? This is like a meeting in your calendar. These are all like basically, how do we say instantiations of the idea of you generating leads. And this is all, believe it or not, that the customer is going to judge you on. The customer isn't based off your lead gen. They're how many emails with new lead notifications they got in 60 days. They're going to judge you based off how many Slack notifications they got with new leads in 60 days. They're going to judge you based off the number of meetings in their calendar. and then subsequently you know actually like the calls that they actually have with like physical real people. So this is what like the actual lead generation side of things includes. Okay. And I guess there's one more thing that I'll mention over here. There sort of like reporting. In addition, you also have things like the configuration of a workspace or something. Basically you have some sort of like asset config. So what does asset config actually look like? Well, in order to do cold email a lot of the time you have to set up on a platform like instantly. If you guys don't know what Instantly is, check out the um affiliate link in my description. I will love you long time. Basically, this is a cold email service that allows you to spin up multiple mailboxes and and get going with it. Okay, there's value to the client in having a nicely, beautifully configured instantly workspace because that's an asset that they can click through and then go into okay, how about something like a CRM? That stands for customer relationship management system. This is again something that they see on the page that they go into. Okay, if you think about it from this, you know, this one service, lead genen, has actually led to, I mean, gez, more than a half dozen products here. We have emails, Slack notifications, meetings in a calendar, we have actual calls, we have reporting, we have CRM, we have an instantly configuration. How about like uh I don't know, some sort of like meeting recorder. Okay, these are all just various assets that you can configure to add additional levels to your product. And so that's what we've done here. We basically taken this service and we've converted it into actionable things that clients actually see, not just stuff that's important to us. And this is what you need to do if you want to convert your service into a product. So now once we have these, what we do is we go through all of the services, the lead genen services that we've delivered to clients before. And you know, if you're at the point where you're considering productizing, odds are you probably done this for two or three clients. So you have some experience. And what you do is you just go through each of these. And you'll notice is that 80% of the time from one client to the next, these are actually very similar. Well, now you have all of the things, all of the deliverables basically that you're forced to deliver from client to client. And then once you have this list, what you can do is you can just start creating assets that you can copy and paste from one client to another. This is sort of the templated aspect of productization. Okay, so this is sort of the end result here. And if we just, you know, go top to bottom, let's just write this. We have an email notification. Then we had some sort of Slack I'm already forgetting this. We had uh calendar event. These are all the deliverables that the client can see or touch. Then we have the um actual calls like aka the meetings. Then we have the reporting. I should say reporting here, but why don't we make it uh very concrete? Why don't we do like a Looker Studio report? That's just a database visualization um service. Okay. Why don't we do some sort of CRM? Why don't we make it really concrete? We'll go ClickUp setup. Maybe this is where we store the leads after we've notified them. Then we have instantly set up. And then on top of that, we also have some sort of like meeting recorder setup. These are all things that I actually include in my own lead genen service, by the way. That's why I'm rattling these all off. All right. Okay. So now what we have is we have the deliverables and now what we do is we work backwards from there. So we start with the email notice kind of at the end here. What we do is we work backwards. You say, "Hey, for the email notif, how do we actually set up a system that delivers an email notif? " Well, if you think about it, in order to set up a system that delivers an email notif, you might have some sort of, I don't know, make. com automation that you enter a lead outline into and it creates some sort of nicely formatted email. For the Slack notifications, maybe you have some sort of make. com automation template. for the cal event maybe I don't know you configure cal. com or whatever service to like format the cal events for the calls where are they actually going to be having the calls where they're them I don't know let's see zoom okay how do you set up a looker studio dashboard well if you think about it you got to duplicate the template all right well the template's one thing how do we get the template well I don't know we have to build at least once um some sort of dashboard okay how about click up well we have to duplicate the template as well and then over here we have to like build our CRM how about instantly you know maybe we I don't know we follow some SOP means standard operating procedures just a list of steps a checklist basically and then maybe the same thing for the meeting setup so we've done now is we've taken the deliverables which the client cares about that we want to maximize the quality of and we've turned them into tasks which at the end of the day we need to do in order to fulfill our end of the deliverables now we I haven't quantified any of this stuff, but obviously quantification is an important part of the process. All I'm trying to do here is just conceptually show you guys how to think about productization from sort of like from an end to beginning approach. Once we have all of these things, what we do is we start creating reusable components for each of these. So common automation functions, well, what's an example of a common automation function? Some sort of automation template that immediately instantiates notifications in email and then Slack. Okay, that's a very good example of it. you can start adding your own formatting. And the cool thing is now it's like formatting that's companywide. It's always the same thing. Your formatting looks really pretty. So every time you deliver a project, you can just make that formatting 1% better today. Or maybe you have some sort of report standardization or something like that. Well, your reports the first time you deliver to a class probably not going to be perfect, but then the next time you're going to make it a little bit better, and they're going to make a little bit better. So now your entire product is getting better over time. And the only way you can get something better is if you first standardize it. After that, you build some sort of testing protocol for all implementations. This is super simple. In reality, this is just like an SOP for, I don't know, end to-end testing of the automation before you're done implementing it. You develop some sort of transition templates for moving between service modules. Now, you know, we don't just have to use ClickUp here. We could also, I don't know, use monday. com or something like that. And so when you develop your core standard product, once again you've standardized things, you can start adding extensions and package uh plugins and so on and so forth. So maybe this is hot swappable, which allows you to maybe apply not only to monday. com or ClickUp jobs, but also monday. com jobs. It allows you when you're pitching people to say CRM, hey, what kind of CRM are you using? When they say ClickUp, then you say one thing. When they say Monday, you say another thing. This is basically a systematized approach to an AI and automation agency. And you know, you don't need to do this stuff right away for sure. Like you're much better served just getting up and running and selling stuff. If you haven't gotten your first customer before implementing the steps in this video, definitely like get customer number one and then come back to this after. But if you can get in the habit of being systematic with your business, you'll be much better off. Okay, cool. So, next up, now that we've done all that, now that we have that giant list, which I'm just going to copy over here for simplicity, now the question is, okay, great. How about if we wanted to scale our agency? Cuz it's fine if you do this thing over and over again, but in reality, like, you're not building an agency for the most part just because you want to buy yourself a job. You're building yourself an agency because you want it to be immense leverage and you want to like free up some of your time or something. So this is where you start getting into the mindset of not like the person doing the work, but the person that's managing and organizing the work. So after you have your giant list, what you have to do is you have to take all of these tasks over here and these ones as well. And you just have to group them by roll. The idea is at this point we're now going to be handing off these tasks to somebody to fulfill for us. And that's kind of this next step. So, we're going to focus on strategically grouping tasks by role or function. This is critical for efficiently allocating resources and also scaling without hiring an army of people that can only do one thing. What do I mean by this? Well, like do you really want to hire a make. com automation template builder that only knows how to make email notifications? No, obviously not. You want to hire like a make. com person that can just do any of your notifications, right? Likewise, do you want to hire, I don't know, let's say hypothetically the service actually involves you managing the calls and like jumping on the calls and qualifying and I don't know, maybe setting or maybe even closing. Like you're going to hire a salesperson for that, right? Why? Because this is just a logical grouping of all the activities that sales people tend to be good at. A salesperson tends to be good at talking to people. People that are people also tend to be good at convincing people. The skills are all correlated, I suppose. So, what do we do then? We group things. Now, in my case, I was mixing a lot of technical and then creative tasks. And I wasn't just doing this at left click, by the way. Taking a lot of inspiration from the productization of 1second copy which is my company before this. This caused a lot of context switching. It involved like massive productivity impacts and decreases. Well, what we ended up doing I should say my partner and I is we grouped together common tasks. Instead of breaking things down by let's say like writer and editor or whatever, we had combined full stack writers. We found that full stack writers were significantly more economical for the most part for some types of content. Then we also found that having low cost of living country writers like people from the Philippines or let's say Bangladesh to do the rough drafting side along with AI allowed us to arbitrage that cost of living difference and then make multiples on selling that content to people in maybe more affluent regions and then we hired people from more affluent regions to just do like a once over and sort of Q& A. So now we're not paying a person from a more affluent region for the entire project. What we're doing is we're paying a person from a more affluent region for like 5% of the project. Then we're paying people from very low cost of living countries 95% of the project and we're having them use AI to do a lot of like the preliminary editing and stuff. This is all examples of process optimization. I did this in the writing company. Obviously automation as well. But basically I guess the point I'm making is like you know let's say instead of all this your service is ads. There is creative, which is the images, and then there's copy, which is the writing. You know, better to have people that are really good at creative do creative stuff. copy do copy stuff. This isn't always necessarily true. I've actually done this exact system for advertising where I had a combined creative and copywriter. But just wanting to let everybody know here that people just tend to be good at different specific things, right? Copywriters tend to be better at words. Creative people designs and so on and so forth. Okay, cool. And yeah, you know, I'm not saying you need to hire people here. I'm just trying to give you guys an example. Anyway, in a nutshell, what you're doing is you're establishing a production line approach with standardized handoffs. You know, like Henry Ford and the whole like assembly line thing. When I learned about this, if you guys haven't, just Google it. When I learned about Henry Ford and how him introducing the assembly line was like revolutionary in business, I like kind of scoffed as a kid. I was just like, really? That's the big discovery? An assembly line? Wow. So revolutionary, right? Jeez. I got to be honest, this stuff really is revolutionary. It is revolutionary to take the magic out of a process and then turn it into concrete, hard, step-by-step, deliverable tasks, that is incredible. And the second that you start doing that, like Henry Ford did with this artistic vision of creating an automobile and turning it into something that's sequenced and standardized and repeatable, obviously he started printing freaking money hot off the press, so you can take advantage of that as well. Okay, now let's learn how to

### Calculating costs precisely [24:41]

calculate costs. We've gone through this process starting from the generalized service that just said leads and then we turned that into a more concrete list of deliverables aka things that the client is going to be playing with. We then turn that into a bunch of tasks and then we considered grouping it based off of RO. What we do now is we calculate the cost of our product. The reason why product is because when you start with the cost of your product in mind, you basically get to make your margins whatever the hell you want. Like for instance, if I know that the cost of my product is $1,000 for me to make, what I can do is I could just sell that for $10,000 and then I could make 90% on gross and that would be incredible a highly scalable business. The question obviously is can you get people to buy the product that you are internally spending $1,000 on that they have to spend $10,000 on. But I mean like have you guys ever bought a mattress before? I mean mattresses are products, right? There are products that have certain things that go into them. But I mean like a $1,500 mattress like I just bought one for my new apartment is realistically like $500ish dollars to prepare. That's like 66% 70% margin on that mattress. What you're doing is you are in essence taking all of these tasks and you're figuring out what is the cost of goods or cost of services that need to go into that so that later on you can charge those big ticket, you know, big sticker prices of $1,500 for a mattress. What I've actually done is I've created an example here um for productizing a PR service. Okay, so I'll walk you guys through that example in a second, but anyway, before I productized, um, I was basically just guessing at my cost for every project, which led to wildly inconsistent profit margins. As I mentioned, sometimes I'd have 80% and then other times I had a negative 20%. I tried to stay away from losing money, but sometimes in business, you have to take a risk, and that involves you losing a little bit of money. Now, for AS services specifically, the technical side consumed about 40% of the project time. My documentation, I had a special documentation procedure where I recorded a Loom video at the end of every deal. Um, I walked people through how their system worked and stuff like that and I found that they just really loved it. So I spent about a quarter of my time on that. I spent about 20% on client comms and then you know quality assurance and stuff like that was about 15%. Now the most valuable outcome was always my ability to confidently set profit margins based on actual data. And that's what I'm going to talk about here. Like my ability to set my profit margins and just say hey I'm going to make 90% on this deal is one of the reasons why I think I was able to grow two agencies as successfully as I have today. One of the reasons why profit's so good is because the second that you fix your margins, you can start knowing how much money you have to invest. I know it sounds kind of silly and trit. Obviously, if you're making $10,000 a month at 90% margins, you know you're making $9,000. But you'd be very surprised at how many people that I ask on a day-to-day basis, hey, what are your margins over the last 30 days? And it just takes some like 15 minutes to answer. Ideally, you would know all this stuff right off the top of your head. And I knew my margins down to the percentage point. So I'd recommend that anybody that wants to do this sort of thing do the same. Okay. Anyway, so how do you actually

### Productizing a PR service [27:28]

productize let's say a PR service? So PR stands for public relations. Public relations people in a nutshell if you are unaware basically take their clients and then they list them in popular magazines and in popular newsletters and journals. So if you were to take me and then I were to work with a PR person, maybe I'd say, "Hey PR person, I'd love it if you could get me on Forbes or something like that or maybe make me a Wikipedia article. " The PR person's job is now to take that request and then turn that into, as you can expect, a bunch of deliverables. Take those deliverables, turn those into tasks, take those tasks, turn those into roles, and then assign them to the relevant people in their company to go and actually do the thing. And how do they typically do it? Well, it's actually a lot simpler than you think. I used to own a quarter of a PR company and uh in a nutshell, you just send a bunch of emails to people and you typically have a network of journalists that are at various things and you say, "Hey, here's a really interesting guy, Nick. He's got cool hair and a super handsome smile. you know, I want to rank him on Wikipedia, you know, can we do this? And if I'm interesting enough, then obviously they'll do it pretty easily. Okay, so now that you know how that is, let's actually go through the process of productizing this. So instead of just, hey, I'm going to offer you PR, what we're going to do is we're going to turn this into a very quantifiable list of things that they're going to get and then we're also going to turn it into a cost. We're going to get that cost that's going to be internal and then we're going to turn it around, fix a margin, and then make it our external cost. All of that sounds like jargon to you, don't worry. Let's say we start with the end result. How many earned media spots do we actually want to give clients per month? Let's say five. Let's split into some packages. There'll be five, there'll be 15, maybe there'll be 25. So, the very first thing we have to do is we have to identify the conversion rate on emails. So, you know, as I mentioned, this is basically just a cold email campaign. So, if it's a cold email campaign, what is the typical conversion rate? If I email a,000 journalists, how many of them are actually going to respond with some sort of positive thing? Well, let's say 0. 5% to be conservative. So, if we want five media spots, what do we have to do? Well, we have to send a,000 emails times. 5% to get five spots. So logically what follows is let's just calculate the cost. What do we need in order to email a thousand journalists per month? Well, we need an email platform of some kind. We need a lead source of some kind and we need a system to scrape them. So 100 bucks plus 100 bucks is how much? $300 a month for software. Now I should note that these are collective software costs. You don't always have to like pay for new software costs for new clients. So I'm not going to include this in the end cost, but I just wanted to start chatting numbers here. You know, there are a lot of software subscriptions that you can use to fulfill a service that you can just bundle on with a bunch of other people. And those ones are actually really good. Anyway, we're already spending 300 bucks a month for software, but how about the actual tasks that are involved? Well, let's say you need somebody to set up a campaign. Then write the manage response to the campaign on an ongoing basis. So, what's this role that I'm grouping them under? PR specialist. This is a real role. People actually do this on a daily basis. I employed many of them. How much time and money would it cost for a PR specialist to do this? Well, I search up some publicly available data. Shows this role about 30 bucks an hour. If it takes 5 hours to start building that list, that sort of initial section, that's 30 bucks times 5 hours is 150 bucks. Then if it takes half an hour a day to manage the responses, 20 days per month, that's 30 bucks an hour times 0. 5, half an hour a day times 20 days per month, 300 bucks. That means that our total cost to deliver on a fixed basis is 150 plus 300, $450 a month. Then we also have a $300 a month software cost. The reason I'm adding the software cost in brackets here is because the software cost is not variable. Okay? You know, one client means that we're going to pay 450 a month. 10 clients means we're going to pay 4500 a month. But notice how the software cost is the same in both cases. You know, hypothetically, I mean, yeah, I guess it depends on what service you're using. The point I'm making is this one is u this one's variable. This one scales, and then this one is flat. This one's just always the same. Okay. Anyway, let's now say I fix my desired profit margins at 80%. I want to make 80% on deals because I think 80%'s healthy and I like the idea of making, you know, 80% on all of the money. So, mathematically, what is that? That's 450 divided by 1 minus 0. 8. That's the math. So, this is 0. 2. And 450 divided by 0. 2 is basically just 450 * 5, which is equal to 2,250 a month. What does that mean? We have now basically like mathematically priced. We're not just pulling numbers out of our ass anymore. We're not just doing our perception of valuebased pricing. We're actually mathematically pricing our product. And now, you know, this is $2,250 a month for, I don't know, your five package. What you can do is you could do 2. 25K for five spots. You know, you're going to have 80% there. And what do you do for 15 spots? We just multiply the internal cost by three approximately, right? So, you know that this internal cost of 450 a month is going to be 1,350 a month. 1,350 a month times 5 is 6,750 a month. So, you know, I guess we just multiply that by three now I'm thinking about it. So, now you get into the part where, you know, you charge 6. 75k for 15 spots. And now maybe you can do something like now that you've, you know, built out this table, you can offer some sort of 10% discount for people that go to the 15 spot as opposed to just the five. And you can actually make this a little bit more cost effective. Now it's 605k, right? And now you're kind of upselling this. You're saying, "Hey, this is actually like more cost efficient. " If all you care about is how many spots you get per dollar or how many dollars you get per spots or whatever the heck, this is the more optimal one for you. All right. Hopefully I'm running you guys through what the process looks like in order to calculate costs. But at the end of it now, what you have is you have a list of packages and deals. So let's run through this really quickly with that other example that I provided you guys earlier, the one about lead genen. So if

### Productizing a lead gen service [33:02]

you think about it, this lead genen service that was before where every time you get a new client, it's like, hm, how much is this going to cost? Uh, it's going to cost 1,500 bucks. Um, I don't know. It's going to cost uh 2,200 bucks, right? Ooh, it depends on the value. it's going to cost 3,900 bucks. You know, this is stuff that is fine if you're a beginner, but if you want to move past the beginner stage, you need to learn how to productize your service. Instead of providing this vague thing, you're going to provide all of these concrete deliverables. And now you can see how we got at the super concrete price. What did we do? We actually calculated the cost of scraping 10,000 highquality leads per month. This might have cost me $12. Okay, approximately. This the internal cost of having somebody at my level offering a 45minute weekly strategy session might be $500. So this is now $12 a month. This is $500 a month daily Slack availability. Having somebody to manage and train their team 2 hours a day that's 40 hours a month. Maybe I'm getting somebody at like a reasonably low rate. I don't know. Uh I get that for 600 a month. And then maybe this monthly report cost me like I don't know 50 bucks to generate or something. If we add up all these costs now you'll see that we're actually at like a pretty reasonable price. This is 600 + 500 that's 1100. So that's going to be 1,62. Okay. And then if we take that into account 3,770. We work the math out on 1162 3770 we have just about a 70% margin which is not as healthy as the 80% before but hopefully you guys are seeing um how all of these prices actually come to be. There's some internal cost then you fix your margin. You multiply that out and then you end up with the price that you make customerf facing. And also, I'm not saying you have to charge everybody this price. You really don't. Okay? You can start offering, let's say, a 10% discount or something like that to this service to make this, you know, $3,300 or something. But the point is, you know, have something to anchor. You're not just pulling numbers out of your ass every single time somebody asks you how much it's going to cost.

### Outro [34:55]

Hopefully, you guys enjoyed this video. Had a lot of fun making it. To summarize, the difference between people who struggle to scale and those who consistently make 20, 50, or 75K a month isn't just technical skills. It's having systems that scale without requiring more of your time. Productization does this. It creates this leverage by transforming a vague service offering into a very concrete package which eliminates scope creep. It also standardizes your processes and automates your delivery. The result is significantly more predictable income. It's much more consistency and ultimately has dramatically reduced workload, which I think we're all going for here. The most successful AI automation specialists don't implement this framework overnight. They start with one service, then they apply these five steps methodically, then they expand slowly once the systems are dialed in. So, I recommend you do that as well. Lastly, if you guys are serious about scaling your a agency, definitely consider checking out Maker School. It's my day-by-day accountability roadmap where I provide step-by-step guidance on how to implement this exact framework, as well as many others with templates, scripts, and personalized feedback to help you guys get results faster. In addition to weekly community exclusives, you guys get support, access from me and almost 3,000 other AI entrepreneurs growing together, as well as a whole host of other things. Check the link in the description. Aside from that, like, subscribe, do all that fun YouTube stuff that bumps me to the top of the algo.