marketing, business-model, product, serviceI am trying to figure out if website design is a product or a service.
In my current business model, we create the website and then deliver it to the customer. The only thing is that I feel like we are providing a service called “website design” while also providing a “website” product.
Which is it? Does anyone have any insight on this?
It will depend on how much of "new work" you do on each client. If for every client there is substantial modification and customization then you are providing a website design service. On the other hand if it is minimal then you are doing a website product. It need not be one or either as well.
Take example of wix, it is a website builder product. They provide a set of templates that have placeholders for text and images. You add your content and thats your website. They have other things like widgets etc to integrate content from other web services as well. But they do not do any custom software development for each user.
So if you only allow the users to choose between a fixed set of templates then you are selling website design as a product, however if you do custom templates and design depending on specific client requirements you are selling a service.
The reason we cannot consider custom website design to be a product is that, there is a cost for each "instance of the product" delivered whereas in a real software product every instance of the product does not have additional cost.
Well, essentially website-design is a service, same as Content-Writing for example - even though the end product is an “Article” which can be considered as a product it’s still considered as a service.
Now back to your question - I think there is an opportunity here for your company as it’s all depends on the “Positioning & SalesCopy - What you can do is add a bunch of “Templates” for sale (same as TemplateMonster does for example) - by selling the Templates separately and then offering the Design / Customization of each Template based on your clients needs.
In addition what can really have a positive impact on your bottom line is adding more services & products that compliment your basic offering - you don’t need to showcase them on your HomePage (as this might lower the conversions / Dilute your USP) but instead have an AutoResponder (aWeber / GetResponse / etc…) that will send a weekly newsletter with related / Complimenting offers that your clients might be interested such as SEO services to get their site ranked, or PPC Management services to manage their advertising campaign, etc…
You don’t even have to actually do the work - you can WhiteLabel those BackEnd services from 3rd Party companies or just act as a Lead-Generator and get paid commissions per Client or OptIn.
It depends, and as it was stated in previous answers, it can be both. Some examples:
You are developing a website engine, specific or not, and then selling the source code. This is a product.
You are developing a specific website for a sole customer and your customer will own the resulting website completely. This is your current model, and a service.
You are developing a website which will be used by people in exchange for $. This is a product AND service at the same time, because you are providing functionality (a thing, a product) and you also provide means of using it (a service).
A product is usually considered to be pre-produced deliverable. So, if a customer contact you and asks you for website according to specification X, making that website will be a service. It could also happen that while making the website, you will include some of your preexisting software in it, and in this case, it will again be both - you provide service of work, which also includes delivering a product which you happened to have already, but in this case, service usually takes precedence.
For example, in my home country there is a law which determines the location of VAT tax payment depending on whether it is a service, a product, etc. So, this is rather important thing.
Website like wix, jimdo, izmoweb allow the users to choose templates, they are selling website design as a product, however if you do custom templates and design depending on specific client requirements you are selling a service.
It make sense to buy built-in website templates if u are looking out for website in minutes.
You need to hire a designer if you want to make changes in your website. You can manage your website from these website builders website
In my current business model, we create the website and then deliver it to the customer.
Simply put, If you own copyright to most of the source code behind the website, then it is YOUR product. Of course it helps if that source code is reusable/unique/critical piece of software. Usually this is done as fixed cost delivery.
On the other hand, if the customer owns the copyright to the source that you wrote for them, then it is just service that you provided. This model makes sense if source code/logic is very specific to customer’s need. Usually this is done using per hour billing model.
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