How to start a Drop servicing business in 2020

 by Lisa W. - October 30th, 2020 | Last Updated on October 28th, 2020

How to start a Drop servicing business in 2020

Have you ever heard about the new business model, ‘drop servicing’ and asked yourself about it? Drop servicing is a great business model if you are not ready to go in the dropshipping business.

This is not an alternative to the dropshipping business. However, there are many similarities between the 2 business models. Unlike the dropshipping business, you do not have to sell physical products. 

Let’s put the drop servicing vs. drop shipping debate aside and focus on the trendiest business model, that is, the drop servicing. 

In the drop servicing business model, you do not sell products but the services. But you would only be providing the service. The other party you are working with does the service for your clients. Simply put, your main job in the drop servicing business is to market and promote the services and earn profit from every service sale you make. 

If this business idea amazed you, keep moving forward as this guide is all about starting a drop servicing business in 2020.

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What is drop servicing business?

Drop servicing is a business model in which you find clients needing services. This model is also known as service arbitrage. You find clients through your website or social media networks but the clients do not know that you are outsourcing the services. 

In the practical world, this business is similar to a contractor hiring a sub-contractor to build a house. Once these clients book you for the job or task, you place the exact order to someone having expertise in that area. The people whom you hire are also known as freelancers. You will find thousands of freelancers on freelance websites like Fiverr. 

But how do you make a profit out of this business? For that, you have to know the price of the services provided by the freelancer. The difference between what you charged your consumer and what you paid to the freelancer is your profit. 

What can you drop service in 2020?

Technically, you can drop service anything. But it is better not to drop service something you are not familiar with. Otherwise, you’d fail miserably.

For instance, you are selling SEO services. You would not deliver desirable results if you do not know how SEO works. 

In the same way, you can hire content writers to do all the writing tasks that have been assigned to you. But you need to be the editor yourself. Hence, requiring command over content/blog writing. 

What services you can sell in the drop servicing business?

Even though you can sell hundreds of services, based on your expertise and specialization, here are examples of some of the popular services:

  • Content writing
  • Blog writing 
  • Ad writing 
  • Video editing 
  • Video animation
  • Video creation
  • Graphic arts
  • Logo designing
  • Social media management
  • Guest posts
  • Web building 
  • Blog posts
  • Backlinking 

The possibilities are endless when it comes to selling services. However, you have to study the demand for each service. But you won’t get data like this on the internet. The best way to know is to use Google Trends.

Look at the screenshot attached below. We searched for the term, ‘content writer’. We can see that this service is in demand since 2004.

How to start a Drop servicing business in 2020

How can you start the drop servicing business in 2020?

Get started with the list of services you can provide and also the list of freelance providers. The screenshot above shows the great demand for a freelance writer. You can also opt to sell this service at affordable market prices.

Start with one service and then make your way to other services in your list. This way, you won’t be overburdened by the number of orders.

After that, find a critical and serious freelance writer who can provide quality work. At first, you’d have to spend some bucks to test the freelancer’s writing quality.

Once you have found credible service providers to start your drop service business, you need a platform to reach to your clients. The ideal way to promote your services is to sell them at an online store or website like Fiverr. 

It is better not to rely on social media networks to promote your services as very few people trust you if you do not have a website or a freelance account on one of the online service-selling websites.

How to start a drop service store in 2020?

When starting the drop service business, it is better to trust a platform where all the drop shippers are. Yes, you guess it right! Shopify. It is rated best in the e-commerce industry.

Opening a Shopify store for selling your services will get you the following:

  • Marketing tools
  • SEO
  • Email subscription
  • Exposure on social media
  • Social media integration
  • Payment processing system 

Even if you were into the dropshipping business before, you can transform your dropshipping store into a drop servicing store by replacing the products with services. Shopify allows you to add prices, details and other information with the services.

Easy Shopify store comes with a ‘add to cart’ option so that your clients could order your services directly from their devices.

Another thing you need for your drop service business is a marketing strategy. Building the website and looking for service providers on social media networks are the first 2 steps to get started on the marketing factor.

Drop services- where to find them?

The best way to find gigs is to visit freelance marketplace websites. On these platforms, freelancers create profiles to be hired. You can also post the service you need here and the freelancers will bid or comment on their charges.

Here are some of the best freelance websites to get started as a drop servicer:

  • Freelance.com
  • Upwork
  • Fiverr
  • People Per Hour
  • Hubstaff Talent
  • ProBlogger

Before you hire a service provider, do not forget to check his profile, current ratings, feedback from the clients, impression, charges, and the number of tasks completed. 

Be careful of some freelance websites as they do not have a payment system. It means that you won’t be getting a refund is someone does a bad job.

Ensure that you read all the policies, terms, and conditions before signing up the account. Freelance websites also charge the freelancer. For instance, Fiverr takes 20% of what the freelancer makes. For instance, if you happen to earn $100, you’d only get $80.

Despite this hideous rule, we recommend signing up on Fiverr as most of the freelance profiles are authentic and good-rated.

Pros 

  • You do not need skills to sell a service as you outsource it
  • Recurring income
  • High sales if the service you sell is in demand
  • Start-up costs are very low

Cons 

  • The freelance service providers might provide poor quality work or even fail to deliver the work on time

Summary

Drop servicing might be the next big thing after drop shipping, given we put aside the debate of drop servicing vs. drop shipping. It is easy to earn and it is easy to implement. You do not need skills or physical products, just some knowledge and you are good to start a business of your own.

Other than that, there’s no risk of losing money, only good reviews, and feedback whenever you get a job completed fairly.



By Lisa W.

Lisa is an integral part of the Sell The Trend Family. She has a keen eye for spotting products right before they become big winners!

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