Recently, there has been a new trend, the drop servicing business. Often, influencers in the “make money online” industry can drive massive amounts of interest into a specific business in a short space of time.
That’s exactly what happened with drop servicing.
The business itself has been around for a long time, although it comes across as a “new idea” online.
In this article, we will be taking a deeper look at how this business works, as well as how you can get started.
What Is Drop Servicing?
First of all, let’s take a look at what drop servicing actually is.
Drop servicing is building a service-based business, but outsourcing all the service. Outsourcing for a cheaper price of course.
The name “Drop Servicing” comes from dropshipping which I am sure you have heard of. As I mentioned earlier, this business model has been around for a long time and it’s also a part of scaling service-based businesses.
Other names for drop servicing include:
Where To Find Services To Sell
Most beginners who start drop servicing, look for services on freelance marketplaces.
Here are some freelance marketplaces, you could have a look at:
Or, you could even consider starting a service-based agency and hiring. The difference between what you charge and pay is your profit.
Example Of Drop Servicing
You sell an email copywriting service for $200 on your website.
When somebody makes a purchase, you go and buy that service from a freelance marketplace for $50. The difference of $150 is your profit (minus advertising). What’s great about this is, that you don’t have to fulfill the service yourself. This makes it extremely scalable as you can focus on getting clients.
Since When Has There Been Drop Servicing?
This is a question that you can’t really answer.
A lot of businesses are technically drop servicing businesses. The CEO of a shoe company doesn’t make the shoes himself, he outsources the work and delivers the finished product.
The whole business world works around “drop servicing”. It’s not something new. In fact, it’s so old, I couldn’t tell you how old it is.
The 3 Steps Broken Down
So, let’s recap the 3 simple steps to drop servicing.
1. Finding a Service
First of all, you need a service that you can sell.
So, head over to your favorite freelance marketplace and find a seller. Or, you can also buy a service from elsewhere. Just make sure that it’s reliable!
To make sure, you could also think about having one or two backup sellers. If something goes wrong, you can purchase from them.
2. Finding a Client
Once you have your service, you need to find a client.
Here are three ways you can market your services:
- Content marketing
- Paid Advertising
The choice is yours. Although, I recommend using a method in which you have a little experience.
3. Drop Servicing
Now to the fun part. Once you make a sale, you need to do the actual drop servicing.
That means you pay your freelancer, wait for the delivery and deliver it to your client. See? That was pretty easy.
How To Start Drop Servicing
So, what’s the best way to start?
It’s all explained in this guide on starting a drop servicing business. The guide covers everything from A-Z.
- How to be different from freelancers
- Profit margins
- Building your drop servicing business
- Promoting your drop servicing business
The strategy that it covers is the best way to do drop servicing.
The Limitations Of a Drop Servicing Business
Are there any limitations to the drop servicing business?
Of course, every business has some sort of limitations. The drop servicing business has the limitation that you are liable if there are any problems with the service.
Here are some problems you could run into:
- The freelancer did not deliver the service
- The freelancer delivers the service late
- The service is not the right quality
Those are the three main limitations of the drop servicing business.
How To Cover Yourself For These Limitations
Of course, you can still start a drop servicing business.
Here are some methods you can use to cover yourself
- Charge high prices – This will allow you to use multiple sellers, partial refunds, etc. and will cover the errors of the freelancer
- Use high-quality & trusted sellers –
- Don’t overpromise – Just sell the service for what it is
Drop Servicing is a legitimate business model, but it’s nothing new. It has been around for decades, despite it looking like a new trend. Drop servicing some great potential and is scalable, although the limitations should not be ignored.
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