Product models are more scalable and have higher investor valuations than service models, but can be difficult to implement and require a longer sales cycle.
If your team is biased towards custom features, refocus on discovery and problem-solving for better outcomes.
Accepting work for paying clients can provide additional runway but may lead to customer-driven feature priorities.
Building custom features for one client can impact prioritization, cause delays, and distract from the product vision.
Balancing between custom features and standard product development can create hidden overheads and detract from profitability.
Focusing on discovery and problem-solving is crucial for product companies to avoid falling into the 'agency trap'.
Transitioning between product and service models can pose challenges, and operating both models simultaneously may have downsides.
Contractual obligations to deliver custom work can influence product roadmap, affecting overall user base and profitability.
Introduction of product management in agencies focused on custom work can help address user needs and enhance delivery.
Maintaining balance between delivery and discovery is essential for sustainable product development.