Drop servicing is the new ‘fad’ in the world of online marketing. I think it is one of those that is here to stay too. This has the potential to make a ton of money if done properly.
The best part is that the market isn’t even that crowded. This means that if you play your cards right, you should have the money rolling in sooner as opposed to later.
So, what is drop servicing? How can you start a drop servicing business? That is what I am going to take a little look at in this post.
Table of Contents
What is Drop Servicing?
You have heard of dropshipping, right? If you haven’t, then when you are dropshipping, you are listing physical products for sale.
However, you are not going to be keeping them in stock.
Instead, when you take an order, you will be paying a warehouse or supplier to ship out the product for you. You never even touch the product. It goes straight to the customer. It is a ridiculously popular business model for those who are interested in eCommerce but do not have tons of cash or space in which to start up their business.
Drop servicing is a similar concept. The difference here is rather than selling a product, you will be selling a service. So, the process works as so:
- You list a service for sale
- A client purchases the service from you
- You find a company that is willing to provide this service and you order it.
- You deliver the service to the client
See! It isn’t that much different from dropshipping. You are not the one offering the service. You are simply collecting a payment and ordering it elsewhere. Of course, with a little bit of profit thrown in for good measure!
What can be Drop Serviced?
Honestly, if you can imagine a service, then it should be pretty simple to drop service it.
However, some niches work a whole lot better than others. For example:
- Writing (content writing, article writing etc.)
- email marketing
- Search Engine Optimization
- Web design
- Social media management
- Advertising (e.g. PPC)
Basically, services that can be delivered 100% online with the minimum amount of fuss work ridiculously well when it comes to drop servicing. The more interaction you need to have with a client, the less well the concept works.
How to start a Drop Servicing Business
I am not going to be able to give you a complete guide on how to start a drop servicing business.
However, I will be able to give you an overview of the various stages you will go through, as well as a few of the things that you will need to think about. I am not going to talk about the legal side of setting up your business, paying taxes, etc.
Determining Your Service
Ideally, your service will be one that you understand (you need to sell it, after all), as well as one that can be delivered 100% online.
In an ideal world, it will also be one that you can sell without that much interaction with your client.
For example; with content writing, you need nothing more than their keywords. With SEO, you need the same. There will be some interaction with the clients on occasion, but you will probably want to keep it to the minimum.
Try to think about who you are planning to target your service to. This will help when it comes to marketing and pricing your services.
Get YourFree Dropshipping Cheat Sheet!
Sign up to get your free cheatsheet on how to start a dropshipping business
Building Your Freelance Team
Once you know which service to provide, you can start to find people who can provide that service for you. You can use popular freelance work platforms here.
Don’t forget; do not unleash somebody on your clients until you have vetted their talents. You need to know that you are going to be offering a quality service to your clients. If you don’t, then you will lose your business.
Start with just one or two reputable freelancers. You can find them on places like Fiverr, Upwork and so on. You can always expand later on.
Building Your Sales Channels
At the very minimum, you are going to need to have a website to promote your services. Ideally, the client should be able to purchase services directly from your website without any interaction with you.
So, your typical eCommerce solution would work great here. Shopify is a brilliant option. You will need to tinker with it to ensure that it can work with selling services, but that shouldn’t take too long.
Don’t forget; if you have a website (and you should!), it is important that you have a professional domain name and email address. It is going to be a whole lot easier to sell your services like this.
Marketing Your Services
There are plenty of ways to market your services. A lot of it will be dependent on the type of services that you are offering and to who. People who are involved in drop servicing tend to swear by the following techniques, however:
- Search engine optimization (VITAL!)
- Pay per Click Advertising (important for quick initial sales)
- Email marketing
- Social media marketing
- Cold and warm calling
Try to pick the techniques that work best for your business model. In my opinion, all of them are suitable for a service-orientated business, with SEO and PPC being your primary marketing methods.
Making the Sale
Once you have made your first sale, you can place an order with the team you have built. They will complete the work, and you will collect the profit. Simple as that.
After this, it is a case of rinsing and repeating. Constantly expand your team and look into other niches you can target. Your drop servicing business will be off to a flying start!
What are the Benefits of Starting a Drop Servicing Agency?
The service industry is incredibly lucrative. People are making millions of dollars a year selling services. Now, I am not saying that you will be able to make millions and millions, but I will tell you that if you do things properly, then you could make a rather sizeable income.
This is especially true if you target your services at some of the larger businesses out there.
Of course, drop servicing is a great way to get into the service industry without actually needing to learn anything. You will, of course, need to have a solid understanding about the service.
However, you do not need to know how to provide that service. You just need to know how to market yourself. This means that you can offer lucrative services such as copywriting and SEO without having to learn how to do either of these things.
Drop servicing also means that you can target different markets around the world. You could get in a whole army of freelancers to work with, and you could really be cleaning up when it comes to making money!
What Are the Limitations of This Business Model?
The major limitation of drop servicing is that you will need to have a solid understanding of the products that you are selling. If you are dropshipping, then you do not need to know that much about your products.
Most of the time, it is going to be a product description and that is it. People will know exactly what they are getting.
With drop servicing, you will likely have to physically go out there and find new clients.
This means that you are going to need to be able to tell them what your services bring to the table. They need to know why they should be working with you.
It is likely that they are going to have a lot of questions too. Basically, if you do not understand the market and your product, you are not going to make a sale.
You must also remember that selling a service is a lot less predictable than selling a product. The quality of a product will never change. A service may do, particularly if you have to outsource to different companies. You will need to remember this because if you sell a poor service, it will be you that is getting the blame.
Finally; services require a lot of interaction with the client. These services may be unique and tailor-made to the client. This can cause lengthy delays if you need to act as a ‘go-between’ for the company you are using the services of, and the client you are selling to.
This is why some niches may not be great for drop servicing. If the service can’t be sold in ‘packaged’ form i.e. the service is delivered ‘as is’ without any real interaction with the client, then it probably won’t work. It will eat into your profits, and cause you a whopping headache at the same time.
How Much Does It Cost to Start?
In theory, you could start drop servicing agency for absolutely nothing. Although, things will become a whole lot easier if you had a website where you could sell your services.
You may also wish to invest in advertising to reel the potential clients in.
While you could do everything without spending a cent, I reckon that you should have at least $500-$1,000 in the bank to get off to a flying start.
Of course, the more cash you have, the more you can tinker about with advertising, and the quicker you will be able to reel potential customers in.
Are There Any Drop Servicing Courses Available?
A new course has come out called “The Asigo System”
They refer to drop servicing as “eServices” which is pretty much the same thing.
It is a rather new concept and I am currently doing evaluations on one but you will be hard pressed to find many courses right now.
However, don’t fret. You can apply just about any proper dropshipping course to drop servicing without any issues. The marketing concepts are pretty much the same. The only real difference will come from the niche selection, and even then there will be a small amount of overlap.
Remember; when ‘shopping’ for a dropshipping course, make sure you read through my reviews.
In closing, there is something that I need to address here. DO NOT get into this business if you don’t like dealing with people. At some point if something goes wrong, you’re going to have to fix it so you’ll be dealing with a potentially angry business owner.
So if this frightens you, stick to a business where you don’t have to deal with clients such as affiliate marketing or dropshipping.
Questions? Comment below or contact me directly.