The traditional labor based agency model is running out of runway, especially as AI accelerates delivery and procurement pushes harder on hourly fees. This post walks through how value led models like value based, performance based, output based, and especially product based compensation are reshaping how agencies define and capture value. You will learn why productization is emerging as the next evolution of output based models, what it really means to turn your services into products, and what agencies must rethink in their business model to make this shift work in practice.