What is drop servicing business? Is it similar to dropshipping? Are they interchangeable? How can you start DropServicing? Today, I will explain everything about this popular business model.
What is drop servicing business?
Not to be confused with dropshipping (because it sounds very similar), drop servicing is a business model where you sell services – but instead of being the person performing the services, you hire a freelancer to do the work for you.
You are the marketer of these services and make money selling services to people who need them.
How does drop servicing work?
With drop servicing, you create and market a service (or services) through your website and social media, the same way you would with dropshipping. The difference is that when it comes time for a customer to pay to get what they ordered (be it web design, SEO, or a PPC campaign), someone you outsource does the work. You then present the completed work to the client. After the client pays, you pay the freelancer, and the job is done.
What services are the best for drop servicing?
Drop servicing is popular for online marketing, and commonly available services include:
- Design like Logos, T-shirt designs, Social media posts, Flyer designs, etc.
- Programming like App development, Website development, etc.
- Digital Marketing like SEO, SEM, PPC, content marketing, Social media marketing, Adwords, Backlinking, etc.
- Writing like Content writing, Ghostwriting, Resume writing, Proofreading, etc.
- Audio Video Design And Editing like Video Editing, Sound design, Motion graphics, Animation, etc.
- 3D Printing like Building models, Printing designs, etc.
What is the advantage of drop servicing?
Drop servicing is great if you know how to manage and market your business. In a way, you are like an agent, providing a variety of services or specializing in one service to those who need it. If you have the skills to build relationships with clients and suppliers, you can do well in hiring freelancers to do your work. Drop servicing can also be a money-saving business model if you depend on freelancers to deliver your work (as opposed to creating an entire website to market your services).
What are the disadvantages of drop servicing?
Drop servicing requires you to find talented freelancers to do the work (and there is no guarantee that they will). Basically, you have to recruit talent – whereas, with dropshipping, suppliers are usually willing to accept orders at any time because they already have inventory in the production process. Also, it is not always possible to guarantee an exact turnaround time for your service, depending on how busy a freelancer is. Also, you will have to build a website from scratch to market your services.
How to start a drop-servicing business?
Getting started is similar to any online business – you have to define what you want to offer and who your customers will be. Once you’ve figured that out, it’s time to get down to business, and there are two ways to do this:
Build your own website
Using a platform like WordPress or Wix, you can create a website to market your business and its services. Customers hire you by finding your website. Then you scour for talent to do those jobs. I recommend going this route because having an actual website enhances your credibility as a business tenfold. It’s also easier to market on social media and run ads, as visitors have one place actually to reach out and research.
Create an account on one platform
Fiverr can also be used as a platform to experiment with drop servicing
An alternative to starting a drop-servicing business is opening an account on a freelancer website like Fiverr, SEO Clerks, or Code Clerks. That account will act as your business, and clients can hire you by exploring your account and seeing what areas you specialize in.
After you’ve been hired to complete a task like programming a website or designing a landing page banner, you can search sites like UpWork or PeoplePerHour to find people to perform your services. However, this method will lose some work in account creation and profile setup.
Note that no matter which route you go, you must know how much the client who hires you is paying compared to what you are paying the person you hire to do the work. In general, you want to charge more for your drop servicing but look for freelancers who don’t charge much for their services so you can actually make a profit. But remember that it’s very difficult to determine the quality of work done by a freelancer, so always check the freelancer’s portfolio or profile page on a talent center to ensure they can work by your standards.
Where can you find resources for drop servicing?
I’ve noted some great sources above, but some other popular ones include:
- Hubstaff Talent
- Hire Coder
- 99 Designs
Conclusion about What is Drop Servicing Business
Drop servicing is definitely a different business model than drop shipping, but it’s a great business idea for those who know how to manage client/freelancer relationships. If you know how to find talent and organize work, you can make money selling on-demand programming or marketing services.