Have you come across the word Drop Servicing and are you wondering what it is all about.
In this article, I will explain everything you need to know and how you can get started.
Drop Servicing is a new online business that is very similar to dropshipping.
But instead of selling physical products, you provide services to individuals.
It is closely related to freelancing but you don’t really have to the job yourself
The most important thing in Drop Servicing is Marketing?
Your ability to market your chosen service will greatly determine the profit you will make.
What Is Drop Servicing?
Drop Servicing also called service arbitrage is a business model where you sell services. But the client does not know that you do not provide this service.
All you need to do is collect money from the customer and outsource the job to freelancers.
Once the job is completed just forward it to the client and keep the profit.
For instance, if a client pays you $100 to build a website you can hire someone to do it for $50 and you keep the remaining $50 after delivering the job.
What Can You Drop Service?
You can drop service anything as long as you have knowledge about it.
Don’t try to dropship something you don’t understand or you will fail.
Just make sure you have the basic knowledge about it and do a lot of research to make sure it is not highly profitable and not competitive.
Some good services to “drop service” are:-
- Graphic design
- Web design
- Virtual assistant
- Social media manager
- Video creation and animation
- Lead generation
- And much more…
Just pick any of the above services and validate the keyword using Google Trends and Google keyword Planner before you choose the one that suits you.
How Can you Start a Drop Servicing Business?
- Choose a service to Dropship
- Find your service provider
- Create a Website for your services
- Pull customer to your website
- Deliver the Job
Choose a service to Drop Service
AS you already know a jack of all trades is a master of none. And you can’t provide every service on the internet.
Just pick one, grow and become an authority in that niche
Find your service provider
The first thing you need to do after choosing a service is a list of service providers.
These are freelancers who have more experience about the job and can deliver the job on time.
Some freelancing platforms include fiverr, upwork, peopleperhour etc
But you can’t just outsource the job to any freelancer you see. So your best bet is to test a few freelancers with the same job and see the person who performs best.
For example you can hire 3 freelancer from fiverr to write the same article then after they submit the work all you have to do is keep working with the person you are satisfied with.
Create a Website for your service
The next thing you need is a platform to display your services.You can create a website that suits your business or you can use the shopify which is the platform used by dropshippers
Shopify is an online ecommerce tool that allows you to create a store
You can get your Shopify trail here
You will get access to all the tools you need such as
- Marketing tools
- Payment processing system
- Social media integration etc
Pull Customers to your Website
The next step is to drive traffic to your shopify store using Facebook or Google ads.
But I suggest you spend within $10-$20 per day and with time you can go a little higher.
If you don’t know how to set it up you can watch the short video below.
After your ads are active you will start getting trafiic and orders.
Once a customer pays and gives you all the information for the job you just have to forward it to the freelancer who will do the job at a cheaper rate.
Deliver the Job
After the job has been completed by the freelancer. All you have to do it deliver it to the client
And if the client likes it you have successfully completed your first order.
Just rinse and repeat the process.
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How much will it cost to do Drop Servicing?
The amount of money you will spend to start depends on the platform you decide to use.
If you decide to have a website you can get everything setup for as cheap as $3.95/month on Bluehost. And if you decide to use shopify be ready to spend $29/month for your shopify store.
I recommend you go with shopify which is built to handle drop servicing unlink a website where you have to build everything from scratch.
You also have to pay the freelancers who will do the job for you. But you don’t have to worry much about this because the client will pay you before the job.
Just deliver the job on time and make sure the customer is satisfied.
Some Advantages and Disadvantages of Drop Servicing
- It is easy and you do not need to master a skill to provide the service
- It is easier to get started unlike dropshipping where you have to deal with refunds and order cancellations.
- Your level of control is limited because not all freelancers will deliver the job at the expected time and late delivery will affect your business
- Make sure the client does not know that you are outsourcing the service so don’t make excuses if you fail to deliver
Drop servicing may be the next big thing. But like every other successful business out there it requires time, money and hard work to grow and be profitable.
You are not going to lose money on shipping costs, and you will not have a lot of customer complaints for bad products because each completed service will pass through you.
So, That’s all for now. I hope you loved this article. Please comment down below if you have any queries.
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