Ever since the pandemic started, a lot of people have opted to start an online business. However, with various business models to choose from, deciding on the best model for you can be difficult.
You might have heard of the term “dropshipping” and once or twice have considered entering this kind of business. Another option is “drop servicing”, a business model that is gaining popularity fast and for good reasons.
Drop servicing is gaining a lot of attention these days despite entrepreneurs feeling hesitant about what this business model is all about and how it works.
What Is drop servicing?
Online business models are on a rise these days. Customers have become more comfortable in ordering services and products online. Most business owners are persistently finding ways to get a headstart from the competition and bring unique ideas to attract customers — one of these is drop servicing.
So what is drop servicing? It is a business model in which people sell services that are delivered by other people. With drop servicing, you start a business and hire other people (freelancers) or an agency to complete the job for you instead of doing it yourself. As the owner of the business, you will be responsible for the sale and the people you hire will be responsible for delivering the services you offer to your clients.
Sounds a lot like dropshipping, right? Drop servicing is a similar concept, however, instead of selling physical products, you sell services.
Earning for both business models is similar. You hire people for less and sell your services for more. As the owner, you will serve as the middleman while the actual work is being completed behind the scenes.
Starting a drop servicing business
Starting a drop servicing business is relatively simple. You don’t need a lot of time or money on your hands to get started. Although it’s great if you have a budget for marketing and sales, it’s still possible to get started with just a small budget.
Being an expert in the services you offer is not necessary at all. Having basic knowledge is already enough, to ensure you hire the right people to do the job for you.
Steps To Begin Drop Servicing:
- Come up with a list of services you want to drop service.
- Build a website and add all the services you are offering there.
- Advertise your website and services.
- Hire people to work for you and deliver quality results.
- Find clients and give them the best service you can offer and start earning.
Creating your own website can take some time since you need to stand out from all your competitors. You have to make sure your website is not just pleasing to the eyes but also includes the right content to attract clients.
Creating a great website should include the following:
- Well-structured homepage highlighting the services you offer.
- A statement to which your prospective clients would feel that you stand out from your competitors.
- Payment options.
- Optionally, incorporate marketing strategies such as a signup form for a newsletter.
- Basic SEO optimization.
Drop servicing business ideas: services you can offer through drop servicing
Choosing the right services to sell can be tricky. You have to see yourself in a position where you’ll be the client. What would you need? What would you look for in a drop servicing company?
Doing some research on what services are popular can be done through Google Trends. This way, you will have a better idea of what kind of services would be good to provide.
With drop servicing, you can offer any type of service as long as these two conditions are met:
- There are high-quality freelancers or agencies available that you can hire to deliver quality work for a relatively low price.
- You have a client who is willing to buy your service and pay more than it costs you.
Here are some ideas of services you can offer in your drop servicing business:
- Social media management. A lot of business owners struggle with managing their social media pages and growing their online presence. Some of them are too busy to be active on social media which is why social media managers are available to handle these tasks.
- Website development. The constant demand for web developers has made this kind of service an evergreen one. Businesses always find people to hire to reconstruct, optimize and add more features to their websites to provide their visitors or customers with a better experience.
- Graphic design. This niche encompasses different kinds of services that you can offer. From logo design, ad creation, and graphics, to customized brand visuals, etc.
- Video creation. Just like in graphic design, this niche can offer a lot of services which can be as follows: video ads, short videos, animation, and a lot more.
- Content writing. Writing is considered one of the most popular services in drop servicing. The demand for content in different business industries all over the world is very high. Whether it’s blogging, creative writing, copywriting, social media posts, eBooks, etc. you will have a lot of opportunities to market this service.
- Search engine optimization (SEO). SEO can sound really complicated and not all business owners have an idea of how to do SEO. All kinds of search engine optimization are in demand in the digital market. With the right person, you will be able to offer on-page and off-page SEO, SEO articles, technical SEO, and link building.
As a start, finding the right niche to market is your goal. You can offer different niches but focusing on one to get started is a safe move to make your drop servicing business grow.
Is a drop servicing business a good choice for me?
Starting a business online does not mean you have to have tangible products to sell on your website. Drop servicing is gaining popularity fast because of our ever-increasing digital economy.
If you have an eye for assessing quality work and know (or are willing to learn) how to sell professional services, then owning a drop servicing business can be a great option for you. Prior experience in marketing and sales is not required, however, it can give you a great headstart.
The most important factor in drop servicing success is to always be learning and improving your services and the ways you market and sell them. Another important factor is client satisfaction, as client retention and repeat orders are essential in scaling your drop servicing business.
Benefits of drop servicing
Drop servicing does not only benefit one person. Take a look at these benefits coming from different perspectives:
Drop servicing business owner’s perspective
Business owners can start the business with no capital and earn big. This is a real advantage when doing drop servicing. Having money to invest in marketing and sales is a great way to increase your chances of success, however, is not required. As you grow your drop servicing business, you should be reinvesting your profits.
Your basic knowledge about the services you sell, sales, and marketing will be your key to making the drop servicing business thrive and outgrow competitors. Drop servicing has less risk compared to dropshipping since there is no need for you to invest in the products you sell.
Anything that is done correctly will eventually pay off. With so many in-demand services that are available, you just need to constantly provide your clients with quality work so they keep coming.
Freelancer’s Perspective
For freelancers, drop servicing is something that can give an advantage to those who are having a hard time getting clients on their own. Working in a drop servicing company will allow them to work on more projects without the hassle of wasting time looking for clients to work with. The pay would be slightly lower but it will provide a steady flow of projects.
Client’s Perspective.
Clients benefit from drop servicing by being able to save time and money on finding, hiring, and managing freelancers. Additionally, they are guaranteed to be provided with quality work performed by experienced people.
Challenges And Risks Of Drop Servicing
There is no perfect business model. Even drop servicing cannot be considered perfect. The success of your business does not depend on the business model you choose but on how you run your business.
If you are wondering about the legality of drop servicing, there is no need to worry. This kind of business model is perfectly legal. Just like any other business in any industry, you buy low and sell it higher. As long as you will not violate your contract with the service provider or the client, then no legal issues will arise.
The only risk involved in this kind of business is how you are going to carefully ensure that your service providers will be able to meet the deadlines and requirements of your clients. There could be instances where the freelancer can go inactive and stop responding to your messages. Finding a new, high-quality drop servicing provider can take some time.
Making all your clients satisfied with your services will help you avoid getting bad reviews. A bad review will have a huge impact on your business since prospective clients will most likely check your company’s online reviews. Before hiring service providers, take into consideration the feedback of their past clients and look at their portfolios to thoroughly assess their skills. Give them a trial task to complete and from there, make a decision of whether to hire them or not. Hiring the right people will ensure a smooth-sailing transaction with your clients. Thus, a more successful drop servicing business.
Limitations of drop servicing
Your expertise draws the limitation of your business. You cannot just sell any service you want without having a little bit of knowledge about it.
If you offer medical transcriptions and do not know anything about it, it will be hard for you to assess the work of your service providers — the same thing is true for lead generation, data entry, or any other services.
Another limitation is your management skills. There are service providers that fail to deliver on the agreed schedule and there is nothing you can do about it.
Some service providers will only work part-time and it takes a maximum of 3 days to finish an article which you need to add 2 days to ensure they get it to you on time.
The reason you are adding 2 days is because of unforeseen events that could happen just as revision, no reply, or late submission. Or worse comes to worst, you have to look for a new service provider.
Again, you shouldn’t start a drop servicing business if you are not willing to try the service provider yourself. The client doesn’t know that you are outsourcing, and you can’t make excuses if you fail to deliver.
Get started with drop servicing
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