Drop servicing can be a great low-cost way to start your own business. It is a simple business model that doesn’t require a lot of overhead, and it can be very profitable. It’s also one that has been growing in popularity over the recent years.
In this blog post, I’ll discuss everything you need to know about starting a drop servicing business. I’ll cover topics such as choosing the right services to offer, how it differs from dropshipping, and how to market your new venture.
So if you’re thinking about starting your own drop servicing online business, then this blog post is for you!
What Is Drop Servicing and How Does It Work?
In a nutshell, drop servicing is when you provide a service to a client, but you outsource the actual work to someone else. For example, let’s say you’re a web designer. A client comes to you and asks you to design a website for their new business. You agree to the project and collect a deposit from the client.
Then, instead of doing the work yourself, you hire someone else to design the website (usually a freelancer) and charge the client your own markup. Drop servicing can be a great way to make money without having to do any of the work yourself.
However, it’s important to make sure that you’re able to deliver on your promises and that the freelancers you use to outsource work are reliable and high-quality. With a little bit of research and planning, drop servicing can be a lucrative way to earn income online.
The Pros & Cons of Starting a Drop Servicing Business
Drop servicing businesses are becoming increasingly popular as people look for ways to make money online. There are a number of benefits to starting a drop servicing business.
- You can run it from anywhere in the world.
- It has low overhead costs.
- You don’t need any employees (typically you hire freelancers).
- There are no physical products to manage.
- No need to setup a super fancy website/branding (although still important)
- You can scale faster than a traditional agency (less onboarding required).
- You can quickly test out offering new services to clients.
If you’re looking for a way to make money online for beginners, starting a drop servicing business could be the perfect solution. With its low overhead and global reach, it offers significant potential for growth and profitability.
That being said, there are also some drawbacks to drop servicing.
- Less control of the output quality of your freelancers.
- It may take some time to start building up a client base.
- Scaling a drop servicing business is still more difficult than scaling a product-based business.
- Lots of competition from other drop servicing companies, agencies, and freelance platforms like Upwork, Fiverr, etc.
With drop servicing, you are relying on someone else to provide a quality service, so there is always the potential for problems. Additionally, if your customers are not happy with the service they receive, they may hold you responsible even though you didn’t actually provide the service yourself.
Drop servicing can be quite time-consuming, as you need to manage both the marketing and customer service aspects of your business. If you’re not careful, it can quickly become overwhelming.
Those are a few things to consider when deciding if drop servicing is right for your business. Ultimately, it’s up to you to weigh the pros and cons and decide what’s best for you.
Dropshipping vs Drop Servicing
There are a couple of different business models that people use when they are looking to make money online. Two of the most popular are dropshipping and drop servicing. Both have their own set of pros and cons, so it’s important to understand the difference before deciding which one is right for you.
I’ve done a fair bit of Shopify dropshipping in my day and it’s a business model where you sell products that you don’t actually have in stock. When someone makes a purchase, you simply order the product from your supplier and have it shipped directly to the customer.
Dropshipping can be a great way to get started in ecommerce because it doesn’t require a large up-front investment. However, it can be challenging to find reliable suppliers and to keep track of inventory levels. In addition, shipping costs can eat into your profits if you’re not careful.
What’s more, in today’s age of rising inflation, higher ad costs, and less attribution visibility from ad platforms, the landscape is more difficult than it used to be. That’s not to say that dropshipping and ecommerce are no longer good business models, but you will have to adjust both your prices and strategies compared to a couple of years ago.
Drop servicing, on the other hand, is a business model where you provide a service instead of a product. This could be anything from graphic design, social media management, video creation, SEO audit services, and so much more.
The key is that you outsource the actual work to someone else and simply act as a middleman. Drop servicing can be very lucrative, but it requires more time and effort to get off the ground. You’ll need to build up a network of reliable service providers and create a system for project management.
There are a few more moving parts to drop servicing however if you can land a few large clients and provide them with high-quality results then you’ll likely set yourself up for longer-term rewards than if you stick solely with the dropshipping model.
What Can You Drop Service?
When it comes to the drop service business model, the sky is the limit in terms of the types of services you can offer. Whether you’re a web designer, social media expert, or SEO guru, there’s a service that you can provide to clients looking to outsource their online marketing. Here are a few popular services you may want to consider offering based on your area of expertise and what sort of talent is available to you.
- Video creation
- Graphic design
- Social media management
- Web development
- Email marketing
- Lead generation
- PPC campaigns
- Data entry
- Blog post writing
- Backlink building efforts
No matter what type(s) of services you want to offer with your drop servicing business, you need to find reliable talent to deliver on the promises you make to your clients.
My recommendation is to start by offering services you’re familiar with. That way you can better vet the freelancing talent you’re working with and ensure that their deliverables are high-quality.
How to Start a Drop Servicing Business
Step 1. Choose a Service to Offer
When it comes to starting a drop servicing business, the first step is to choose a service to offer. This may seem like a daunting task, but it doesn’t have to be. The best way to narrow down your options is to consider your skills and interests. What are you good at? What do you enjoy doing? See the list of ideas in the section above for inspiration.
Once you have a general idea of the kind of service you’d like to offer, you can start researching the market to see what other businesses are offering similar services. It’s important to make sure there is a demand for the service you want to offer, as this will help ensure that your business is successful.
With a little bit of planning and research, choosing the right service to offer for your drop servicing business can be easy and fun.
Step 2. Research the Competition
Before starting any business, it’s important to research the competition. This helps you understand the landscape, what services are in demand, and where there may be opportunities for your business to fill a gap. Look at businesses offering similar services and find out what they’re doing well and where they could improve.
Use this information to create a unique selling proposition for your business. Drop servicing businesses are becoming increasingly popular, so it’s important to set your business apart from the rest.
Step 3. Recruit a Team
Now that you’ve got your business plan in place and you know what services you’re going to offer, it’s time to start recruiting a team of freelancers to help you deliver those services. There are a few things to keep in mind when building your team.
- First, make sure to find freelancers who are experts in their field and who have a proven track record of delivering quality work.
- Second, be sure to clearly communicate your expectations and deadlines to your freelancers, so that they know what is expected of them. This is key.
- Finally, always be available to answer any questions or concerns that your team may have.
Step 4. Create a Website and Branding
In order to get your drop servicing business off the ground, you’ll need to buy a domain name, create a website and develop a branding strategy. This isn’t of the utmost importance when you’re first starting out as you’ll want to try and land a client or two to start earning income before you pour too much time and money into creating the perfect website. However, creating a strong website and brand will not only help you convert potential clients into paying customers but it will also help you attract new one organically.
When creating your website, be sure to include a clear and concise description of your services, as well as a portfolio of your work. You should also include a contact form so interested parties can easily get in touch with you.
As for your branding, it’s important to choose a name and logo that accurately reflect the tone and style of your business. You’ll also want to create some catchy slogans or taglines that sum up what you do in a few simple words. You can even use a tool like Logo Ai to draw some inspiration for what your logo might look like.
Step 5. Market Your Services
By this point, you should have everything in place to start delivering results for any clients that you win. Now it’s time to start marketing your services!
There are many many ways to start marketing your service but the two main methodologies include:
- Inbound sales
- Outbound sales
You’ll likely want to start with an outbound sales effort as nobody knows who you are yet. This could involve cold emailing or cold calling businesses that you believe could benefit from your services. You’ll need to write a persuasive email and be ready to answer any of their questions should they decide to reply or schedule a meeting.
The next marketing tactic involves getting customers to come to you. In order to do this successfully you could create a blog offering quality advice related to your industry, start a YouTube channel, post on social media, etc. In time if you consistently post high-quality content you’ll begin to get recognized and potential clients will start reaching out organically. This makes the sales process much easier as the client already knows what you do and how you can help.
Marketing your business is the hardest part of this whole process. However, if you put in the effort and use a combination of inbound/outbound tactics, you’ll soon start to see an increase in leads and customers.
Drop Servicing FAQ
Can You Drop Service on Fiverr?
Yes, you can drop service on Fiverr. In fact, Fiverr is a great platform for drop servicing, as it allows you to easily connect with talent and get your services started quickly and easily. However, be sure to first vet the talent on Fiverr before choosing someone to work with, as there are always drop service providers not delivering on their promises. If you take the time to find a reputable drop service provider on Fiverr, you’ll be able to get started offering your services in no time at an affordable price.
Is Drop Servicing Profitable?
Drop servicing can be a profitable way to get started in the online service industry, but there are some risks to consider before deciding if it’s right for your business. On the plus side, drop servicing can be a low-cost way to get started, and you don’t need to invest in expensive inventory or equipment. Aim to charge 2-3 times what you pay your freelancers for each job. This way you’ll have enough margin to cover marketing expenses as well as generate some net profit.
Is Drop Servicing Legit?
Yes, drop servicing is a legit business model. It’s a great way to get started in the online service industry without with a minimal investment. However, there are some risks associated with drop servicing, so be sure to weigh the pros and cons before deciding if it’s right for you.
Is Drop Servicing Legal?
There is no one-size-fits-all answer to this question, as drop servicing legality can vary from country to country. In general, however, drop servicing is considered legal as long as you are not misrepresenting the services you are offering and you are complying with all applicable laws and regulations.
So there you have it! Everything you need to start a successful drop servicing business. Now all that’s left is for you to get started. With a little hard work and dedication, we know you can make your drop servicing business thrive. What are you waiting for? The opportunities are endless.