── Writing · 5 min read

The agency-vs-product trap and how to step out of it

Notes from running both at once.

Services businesses build products for a good reason: the margin curve is better and the knowledge is already there. Most of those products die for the same reason: they are staffed with the slack capacity of a business that has no slack capacity.

The trap

Every quarter, client work has a deadline and a contract, and the product has neither. So the product loses, every time, on a decision that looks locally correct and is globally fatal.

What breaks the pattern

  • 01The product gets a named owner whose utilisation is not measured against billable work.
  • 02It gets a real deadline with an external commitment attached - a cohort date, a launch, a paying pilot.
  • 03It solves a problem the services side genuinely has, so internal use creates its own pressure.
  • 04You accept a smaller v1 than the services business thinks is respectable.
A product inside a services company survives on external commitments, not internal enthusiasm.

The version that has worked for me: build it as an internal tool first, get it load-bearing, then decide whether it is a product. Axel started that way. So, functionally, did Quire.

Also posted on LinkedIn