Value-Based Pricing vs. Productizing: Is There Really a Conflict?
Pricing is one of the most debated topics in agency growth.
Should you go all-in on value-based pricing or streamline with productized services?
Some argue that value pricing captures the true worth of your work, while others swear by the simplicity and scalability of productized offers.
But here’s the truth: these models aren’t at odds.
The real question isn’t which one is better. It’s which one makes it easier for your ideal clients to buy. If your pricing model creates friction or confusion, you’re adding unnecessary obstacles to closing deals.
In this article, we’ll break down the strengths and challenges of each approach, help you determine which aligns with your business model, and show you how to create a pricing strategy that works for you and your buyers.
1. Value-Based Pricing: The Case for Customization and Higher Upside
What is Value-Based Pricing?
Value-based pricing means setting your fees based on the measurable impact of your work rather than a fixed scope or time spent. The goal is to align your pricing with the actual business value you create for the client.
For example, if an engagement helps a company generate an extra $1 million in revenue, a fee of $100K to $200K may feel reasonable—regardless of the hours worked or number of deliverables produced.
Best for:
✅ High-value consulting and strategy engagements
✅ Clients with varying needs, budgets, and revenue potential
✅ Decision-makers who understand the connection between marketing and ROI
Challenges:
🚨 Requires deep discovery to establish perceived value
🚨 Some clients resist pricing models that feel subjective
🚨 Doesn’t always scale efficiently when every deal is custom
Many agencies struggle with value pricing because clients don’t always see marketing as an immediate revenue driver. If they expect fixed pricing or a clearly defined scope, value pricing can feel too open-ended.
However, for consultants and strategic advisors, value-based pricing can be highly effective. One way to make it work is by blending a baseline retainer with performance-based adjustments.
Example:
A consultant charges $X per month, with a pre-agreed price increase once key metrics are hit.
When client needs and budgets vary significantly, value pricing ensures you capture the true worth of your work instead of being locked into rigid fees.
2. Productizing: The Case for Simplicity and Scalability
What is Productized Pricing?
Productized pricing standardizes your services into clear, repeatable packages with fixed deliverables and set prices. Instead of custom proposals for every client, you create predefined offerings that are easy to buy, sell, and scale.
For example, an SEO agency might offer three tiers of service:
Starter Plan – $3,000/month (basic keyword research and optimization)
Growth Plan – $6,000/month (more advanced strategy and link building)
Enterprise Plan – $10,000/month (full-scale SEO management)
Best for:
✅ Agencies selling execution-based services (SEO, PPC, content, design)
✅ Businesses where client needs are highly similar
✅ Teams focused on operational efficiency and predictability
Challenges:
🚨 Can leave money on the table if clients are willing to pay more
🚨 Less flexibility for unique client needs
🚨 Requires strict boundaries to avoid scope creep
For many agencies, productization simplifies everything—sales, delivery, messaging, and scaling. Clients see a clear offer, understand the pricing, and make faster decisions.
Example:
A PPC agency offers three pre-set pricing tiers based on ad spend and campaign complexity.
If your buyers expect a menu of options or resist custom pricing discussions, productization removes risk and friction from the sales process.
3. The Real Answer: Adaptability Based on Your Model
Rather than treating these models as competing, ask yourself:
Are you selling strategy or execution?
Strategy-heavy work often aligns with value-based pricing.
Execution-focused services are easier to sell and scale when productized.
Is your buyer seasoned or still learning?
Sophisticated buyers (e.g., CMOs, private equity firms) understand value pricing.
Startups and small businesses may prefer clear, upfront pricing.
How much operational overhead do you have?
High-touch agencies often benefit from customized pricing.
Lean teams need streamlined, productized offers.
Most agencies don’t have to commit to one model forever. A hybrid approach, using productized services to attract leads and value-based pricing for high-end consulting, can be an effective balance.
Example:
Some agencies offer fixed-price audits or roadmaps as an entry point, then shift to custom pricing for long-term engagements.
Final Takeaway: Make It Easy to Buy
There’s no universal “best” pricing model, only the one that fits your services, clients, and growth strategy. If you sell strategic, high-impact work, value-based pricing can help you capture the full worth of your expertise. If you focus on execution and efficiency, productized services can streamline sales and operations.
The key is making it easy for clients to buy. Instead of forcing a model that doesn’t match their expectations, adapt to what builds trust and removes friction.
Want to refine your pricing strategy and connect with other agency leaders doing the same? Join the Dynamic Agency Community to share insights, learn from peers, and build a model that fuels sustainable growth.
The right pricing strategy isn’t just about revenue. It’s about building a business that works for you.
