When you're starting a business, one of the first decisions you’ll face is whether to offer a product or a service. Each path has its pros and cons, and your choice can significantly affect how fast you grow, how you work, and how you make money.
Let’s break down the key differences between the two—and how to choose the right one for you.
What’s the Difference?
With a product-based business, you create something once (like software, digital templates, a physical product, or an app), and sell it many times. You’ll spend time building the product, then creating content, doing demos, writing emails, running ads, and trying to convince a very specific audience why your product matters.
With a service-based business, you offer your skills or time in exchange for money—think web design, consulting, copywriting, coaching, or freelance development. You still need to choose a target audience and a clear service offering, but the sales process is usually faster and more personal.
The Truth About Product Businesses
A product can look like the dream path: build it once, sell it forever, and live on passive income. That’s the promise. But here’s how it really works:
- Product creation is just 30% of the work. You might spend weeks or months creating something that works—but that’s only the beginning.
- Marketing is 50%. No matter how good your product is, nobody will care until you explain why it helps them save time, money, or energy. Your product isn’t special just because you worked hard on it. Only your mom cares about that. Your customers care about results.
- Support is 20%. Even digital products need onboarding, customer support, updates, and bug fixes.
Example: You create a WordPress plugin. Great. Now you have to write documentation, shoot videos, answer support tickets, improve features, deal with compatibility issues—and market the hell out of it.
Still, once the product gains traction, it can scale. You can sell while you sleep. You can sell globally. You don’t always need to show up live to make money.
Why Services Are Easier to Start
If you're just starting out and need quick wins, a service-based business is often the better path.
Here’s why:
- You can test the market faster. You don’t need to build anything in advance. Offer your service, and if someone pays, you're in business.
- You learn faster. Real clients give real feedback.
- You earn while you learn. No need to wait months to “launch.” Just offer help and charge.
Example: You offer WordPress speed optimization. You post in a group, someone hires you, and by next week you’ve made your first €200. That’s much faster than building a plugin to do the same job.
But: your income is tied to your time. No work = no money. That’s the tradeoff.
Which One Is Right for You?
Here are a few questions to guide your decision:
- Do you need cash quickly? → Start with services.
- Do you enjoy building and refining products? → Products may be a better long-term play.
- Do you already have an audience? → Products are easier to sell if people already trust you.
- Do you prefer working with clients or working alone? → Services require more communication and relationships.
There’s no “right” answer. In fact, many entrepreneurs (myself included) start with services, then transition into products once they understand their audience better and have some cash flow.
Smart Path: Combine Both
One of the most effective strategies is to start with a service, then productize your knowledge later.
Example: You do WordPress performance work. After a dozen client projects, you notice common patterns. You create a checklist, a course, or even a simple optimization plugin. Now you’re earning from both services and products.
This gives you cash flow now and builds long-term leverage.
Final Thoughts
Don’t overthink the decision. Start small, start simple. Services get you moving. Products give you scale. But both require effort, focus, and marketing.
You don’t have to pick one forever. Just pick one for now.
P.S. if you ever need any technical help check out our services page and see if you need any of the services we offer.
