Following could be few reasons why service based companies tend to provide lower salaries than product based companies.

• High employee turnover. Service based companies often have high employee turnover, which means they have to constantly be recruiting and training new employees. This can be expensive, so they often try to keep their costs down by offering lower salaries
• Low profit margins. Service based companies typically have lower profit margins than product based companies. This is because they are essentially middlemen, providing services to clients who are themselves the product developers. The service based company has to charge enough to cover its costs and make a profit, but it also has to be competitive with other service providers. This can lead to lower salaries for employees.
• Less risk. Service based companies typically have less risk than product based companies. This is because they are not responsible for developing and marketing a product. If a product fails, the service based company is not as directly affected. This can make them more attractive to investors, who may be willing to provide funding at lower interest rates. This can lead to lower salaries for employees.

It is important to note that not all service based companies offer low salaries. There are some service based companies that pay their employees very well. However, in general, service based companies tend to offer lower salaries than product based companies.