What is drop servicing? How does it work?
We’ll get into these questions and more in this post so definitely stick around!
You will learn if a drop service business is right for you or not.
It’s actually a really simple and cheap business model so keep on reading to find out more.
Let’s get into it…
What Is Drop Servicing?
Drop service is a business model where you sell services to customers that you don’t provide yourself, instead, you play the middleman to broker deals between customers and service providers.
With drop servicing all you need to do is broker the deal between a customer and a service provider, so you don’t need to provide the service yourself!
Drop servicing is a similar business model to drop shipping, which I’m sure you have heard of before.
Let’s dig deeper into how drop servicing works…
How Does Drop Servicing Work?
Now that you know that what drop servicing is, how exactly does it work?
It’s actually a very simple business that you can implement with ease!
First, you find someone offering a service on Fiverr, Upwork, Guru, or other freelance websites then market that service yourself at a higher price.
Yup, that’s it! Simple right?
When someone purchases the service from you, you then purchase the service from someone else and keep the profit.
For example, let’s say you want to drop service a logo design service.
You will go on Fivver and find a log design service with great reviews and then you start marketing this service as “your own service” at a higher price.
So, let’s say you use this service that costs $10:
You will then market this service for $20 and when someone purchases the service from you, you then purchase the service from the freelancer you found and then bank the profit for yourself.
So, you sell the service for $20 and purchase it for $10 which leaves you with $10 in profit.
Then you keep doing this over and over to make $1,000’s!
As you can see, you don’t have to do anything other than market your service!
You only need a small budget for the upfront cost to market your drop service but after you get sales the machine will begin to fuel itself.
This is why drop service is such a great business model to make money!
Now that we answered the questions on what is drop servicing and how does drop servicing work…
Let’s compare drop servicing and dropshipping…
Drop Servicing Vs. Dropshipping
If you are reading this article about drop servicing you most likely heard of drop shipping before but what is the difference between the two?
Well… let’s quickly go over what drop shipping is to compare the two.
Dropshipping is a business model where a customer purchases a product from you that you don’t have and you purchase the product from a seller and ship it directly to the customer.
So, you see how drop servicing and drop shipping are similar right?
With both business models, you are selling something that you don’t have or offer but drop servicing is easier and much simpler.
With a drop service business, everything is done online but with drop shipping, there are physical products that will have to be shipped to customers which brings more risk such as returns, shipping delays, broken products, etc…
Let’s dig deeper into drop servicing…
Is Drop Servicing Legal?
Yes, drop servicing is a legal business model that you can use to make money online. There are no laws stating that a person cannot resell services.
The drop servicing business model is a solid business model that will make you money without any legal repercussions.
So, in simple terms, yes a drop service business is completely legal!
Is Drop Servicing Profitable?
Yes, drop servicing is a profitable business simply due to the fact that you are buying low and selling high.
While profits might be low when you first start off, as you grow your drop service business your profits will most likely grow as well.
Due to the simplicity of drop servicing, scaling the business is easy but there can be a lot of competition as well which can hurt your profits.
What Is Needed To Start Drop Servicing?
For a drop service business, all you really need to do is market the service you are re-selling.
Yes, that’s pretty much it! It’s really simple but not so easy.
Due to the amount of noise on the internet, it can be hard to stand out amongst the competition.
One way to market your drop service business is to set up social media pages and post the services you are offering then wait for people to find your page and purchase a service from you.
Or, better yet, you take a more active approach and use social media platforms to reach out to people who you think might be interested in your services.
Using social media platforms as your only marketing method can take a long time to get profits and it’s a bit shady if you don’t have a website where customers can check out your services.
In the eyes of the customer, you are selling the service, they don’t know that you are actually brokering a deal with another service provider so you need to look legit!
This is why having a website is key to running a successful drop service business.
With a website you will look more professional, you can set up sales pages, use SEO to drive traffic to your website, etc…
I highly recommend using a website if you want to start a drop service business! Plus, it’s extremely cheap to start a website!
Also, I recommend you use blog posts on your website to further get sales.
I know… I know… you are not a blogger so why should you write blog posts?
The answer is to simply get more sales! Many businesses are utilizing blog articles to get more sales and here’s how…
When you do outreach for your business or someone just lands on your website randomly most of the time they are not looking to buy right away.
But… If you write blog posts targeting keywords then you are attracting visitors who have an interest in the topic and are more willing to purchase the service your offer.
For example, let’s say you are drop servicing a logo design service. You can write a blog post on “why a logo is important for your business”.
If you write the post well and the keyword doesn’t have that much competition you can rank on search engines like Google, Bing, Yahoo, etc…
Then when someone searches for this keyword they will land on your post where you provide informational content and then offer the logo design service that you are re-selling.
The reason this works so well is that people who are searching for keywords on the topic of logo design or whatever service you are reselling is that they are already somewhat interested in the topic but might not be sure about purchasing anything.
So, they are warmed up to the topic but your job is to hook them and get them to purchase the service you are offering.
Staying on the example of the logo design service, when you write the post on ”why a logo is important for your business” you will give the reader specific points on why a logo is important for their business and then at the end say something like:
A logo is a must-have for any business small or large but there are certain characteristics of designing a logo that will attract customers and help you stand out amongst the competition.
You can spend hours of your time learning how to do this or you can get a professionally designed logo from expert graphic designers with over 10 years of experience for the low cost of $20 using the link below!
Then you direct them to your sales page and you can make a sale! Yes, it takes more work but you will have a much higher chance of making sales this way than just shoving your service in front of people’s faces.
Plus, by utilizing blog posts with SEO once you rank in search engines you will start to attract readers and some will convert into customers all without doing any more work than initially writing the blog post!
I don’t want to turn this post on “what is drop servicing” into a post on blogging but I just wanted to show you how you can take your drop service business to the next level and beat out the competition.
So, all you need to start a drop servicing business is a way to market the service or services you are re-selling and the best way to do this is with a website.
What Can You Drop Service?
You can drop service any service that can be done 100% online without any physical contact with the customer. The simpler the service the better it is to drop service.
Here are a few ideas of services that you can drop service:
- Logo Design/Graphic Design
- Voice Overs
- Social Media Management
- Video Creation Or Editing
- E-Book Design
There are many more but you get the point!
I recommend staying away from more complex services like website design, SEO services, web development, and the like because these types of services are much more involved and things can get messy for you as the middleman.
For these complex services, there will be a lot of back and forth between the service provider and customer to get everything to the customers’ satisfaction so it’s best to stick with the simpler services.
We talked about how awesome drop servicing is but it doesn’t come without its downsides, so let’s check them out…
The Downsides Of Drop Servicing
Like every business model, drop servicing doesn’t come without downsides.
Here are a few downsides to drop servicing that you should know about…
- You have to rely on the service provider to provide high-quality and on-time service to please the customer.
- It can be tough to find the right service providers to use for your drop service business.
- You need to take an active approach to ensure both the service provider and customer are pleased.
- Can get out of control if you are getting more sales than the service provider can provide in a timely manner.
- Since drop service is a simple business model you might face tough competition.
These are a few downsides to a drop service business but there are pros too that we discussed throughout the post so you have to decide if this is the right business model for you.
How Much Does Drop Servicing Cost?
We briefly touched on this topic earlier but it’s important to see how much drop servicing will cost you.
The awesome thing about drop servicing is that you can start for absolutely free!
You can set up social media pages for free and even get a free website to start getting sales for the services you are selling and then purchase the service for the customer.
So, you are using the customers’ money to purchase the service so no money is coming out of your pocket!
To really succeed with a drop service business you need to invest in your business.
You should pay for a professional website (which is cheap by the way) and you should get further training on how to run a successful drop service business (more on this later).
So, to put it simply, you can start a drop servicing business for free but if you are serious about growing your drop service business then you need to invest in the business and you can do so for less than $100.
How Do I Get Clients For Drop Servicing?
You can get clients for your drop servicing business from social media platforms, your website, referrals, forum sites like Reddit and Quora, etc…
There are many ways to get clients for your drop service business. You just have to see what works best for the services you provide.
Best Drop Servicing Course
We went over a lot of information about drop servicing in this post but I just gave you a broad overview of what is drop servicing and how it works.
If you are interested in starting a drop servicing business then you need to invest in the proper training to learn the tactics and strategies to start a successful drop servicing business.
You can get all the training you need with this affordable course.
This awesome course will teach you everything you need to know about starting a successful drop servicing business!
You will learn how to drop service from the ground up and exactly how to grow and maintain a successful business.
The course will teach you how to make $1,000’s with a drop service business and I highly recommend checking out!
Now that we answered the question on “what is drop servicing” and went into depth into how drop servicing works, it’s time to take action!
Drop servicing is a really simple business model but it does take some work to get it set up and running properly so make sure you check out this drop servicing course to get all the information you need.
How does drop servicing sound to you? Is it something that you would like to try? Let me know in the comments below!