Should I build software or productize my service, given I have experience scaling an app to 10k/mo but feel stuck?
Start with a service, productize it, then build software; use multiple lead gen methods, test, iterate.
#272 · stop selling AI agents, sell this instead
Start with a service, productize it, then build software; use multiple lead gen methods, test, iterate.
I don't recommend productizing at the very beginning because you usually don't know what you don't know yet. To productize effectively, you need to fix your margins, understand your cost of goods, know how to hire people, and know what you can expect to pay for certain services. You can estimate some of these, but I still wouldn't recommend productizing right away. You're better off hitting the ground running, talking to people, and filling their needs rather than worrying about all that later. Once you're making about three or four thousand dollars a month, then you can start thinking about productizing.
Congratulations on getting to $500 a month—that’s already a solid start. To reach $10K you can largely repeat what got you to $500, but focus on a narrower set of services and scale them. Identify the channel that brought you your first lead—whether it was a warm referral or a cold outreach—and double‑down on that. Then raise your prices and keep iterating: pick the tactic that works best, increase pricing, repeat the cycle until you max out the market for that service. When you hit a ceiling, invest the profits into marketing or product differentiation, then move on to the next offering. While there isn’t a one‑size‑fits‑all step‑by‑step, a practical first move is to lock down an outbound lead‑generation system—cold email, cold LinkedIn, or cold DMs. With $500 a month you could allocate about $100 to a cold‑email tool and start sending targeted messages. Aim for daily habits: send a handful of high‑quality outreach messages each day (for example five “gold” DMs), which can add up to over a thousand touches by the time you’re 17. Consistency and incremental price increases are the core of the growth loop.
We already work with any industry on anything they need—AI systems, business software, automations. The simplest way to start productizing is not to invent a new service, but to look at what you’ve already delivered that clients liked and double down on that. Make a list of every project you’ve done over the past year, pull the email threads, project files, and note the industries and types of work. Patterns will emerge: you’ll see which systems you built most often and, more importantly, which ones generated the most revenue. Use that data to decide which services to package. Then, reach out to the clients you built those high‑value systems for, remind them of the results, and ask for referrals and repeat business. Reactivating past clients is a low‑effort way to generate upsells—typically a 3‑4% uptake rate, and I’ve seen 15‑20% when I first started. Identify the most profitable, least time‑intensive product you’ve created—often an automated follow‑up agent or similar—and turn it into a repeatable checklist or product. Streamline the delivery: ask if you really need three discovery calls or if a single call or a form will suffice, reducing time investment and allowing you to raise prices, which is pure leverage. In short, catalog your past work, find the high‑margin, low‑effort services, market them to similar clients, reactivate old customers, and refine the process into a sellable product.
If your goal is to scale to seven‑ or eight‑figure monthly revenue, first consider what you're selling. Moving into enterprise with large, intimately scoped contracts often means custom software development and would require scaling the team far beyond nine people, bringing a whole different set of problems I don't enjoy. Instead, I recommend what every lean agency does at the million‑dollar‑a‑month mark: productize the hell out of your offer—think Fat Joe level productization where fulfillment cost is near zero and you charge based on outcomes like placements or deliverables. For example, an old client of mine productized SEO to the point where you just order a $7,755 campaign on their platform with zero fulfillment cost. For your specific model—$10K up front and $35K over six months (about $4‑$6K monthly plus upsells)—you could increase the monthly retainer to $5‑$8K and average $60‑$70K per client. Also, consider niching down: sell outcomes, not the systems, and use automation just to deliver those outcomes (e.g., a cold‑email agency enabled by automation). As an unofficial note, Lewin’s white‑label GHL approach is a massive revenue ad with little effort, but I prefer to focus on creating high‑quality content rather than pushing software on everyone.