What the Heck is Drop Servicing? A Beginner’s Guide to This Hot New Online Business Model
If you’ve been looking for the next big thing in online business models, let me introduce you to drop servicing. This innovative method is gaining steam for entrepreneurs looking to generate income without traditional products or services. But what exactly is it? How can you tap into its money-making potential? Read on to learn all about this intriguing new opportunity.
What is Drop Servicing, Anyway?
At its core, drop servicing involves selling services that you don’t directly provide. Instead, when you get an order, you outsource the work to another company or freelancer to complete on your behalf.
As the middleman, you pocket the profits without having to do the actual service yourself.
For example, let’s say you sell social media management packages on your website. Clients can choose plans and pricing for managing their Twitter, Facebook, and Instagram accounts. But you don’t actually log in and post content for them.
After securing the sale, you turn around and contract the social media work out to a freelancer for less than what you charged. You keep the difference without having to ever post a single tweet.
While traditional resale business buy products wholesale or single product known as dropshipping, then sell them at retail pricing for profit, drop servicing follows a similar model applied to services instead of physical goods.
How Can I Cash In On Drop Servicing?
So what types of drop service businesses are viable and lucrative?
The strengths of this model lend themselves well to these major categories
As a creative agency that outsources projects
Offer website design, graphic design, video editing, or even ghostwriting services by presenting yourself as an agency, but farm out the requests to freelancers once hired to complete at an agreed upon rate. The client deals with you instead of directly hiring the production talent.
By selling digital products you don’t actually make
Sell social media templates, stock photos packs, eBooks, or even website themes and plugins as your own branded products. Whenever you make a sale, purchase a license to legally resell existing templates or tools. The buyer receives a quality ready-made product and will be none the wiser.
Offering social media management sans the management
As mentioned previously, this is a prime opportunity to sell an in-demand service but pass all the actual work onto someone else.
List packages for managing Facebook, LinkedIn, Instagram accounts and more based on what freelancers charge to handle each platform and type of posting.
Other neat ideas to drop service without lifting a finger
Other fertile ground for drop servicing includes SEO optimization, link building, email marketing, video testimonial creation, data entry, administrative tasks…the list goes on. Think of time-intensive services businesses need but consider overwhelming to handle internally. That sweet spot presents an opening for you to sell and outsource.
Why Drop Servicing is Super Scalable
So what makes drop servicing so appealing compared to traditional products or manual services? Two major advantages make this a scalable model:
1- Low overhead
You can start drop servicing without much startup costs associated with other small business ventures. No need to carry inventory, buy materials or equipment. Since everything is outsourced, you skip equipment, tools, and production expenses. And depending on your niche, you may be able to operate almost 100% online to minimize facility leasing costs.
2- Passive income potential
Perhaps the greatest benefit to drop servicing is that almost all the components of the business can run on autopilot. Once you secure the clients and set up outsourcing networks, orders can be fulfilled with minimal ongoing daily involvement. Drop shipping turns the service provider model into semi-passive income streams.
Watch Out! The Not-So-Awesome Parts of Drop Servicing
Of course, drop servicing isn’t without its downsides. Two areas in particular need your attention to avoid issues:
Ensuring quality when you outsource everything:
Since third-party freelancers fulfill the services you sell, you have to implement processes to ensure they meet quality standards for clients. Research providers carefully, start with small orders, and inspect work thoroughly until you trust output. Bad work reflects poorly on your business’ reputation.
Bonus tip – ask to see examples before officially hiring so you can assess skills and professionalism.
Is drop servicing somewhat misleading to customers?
Some criticize drop servicing because clients believe they are purchasing services directly from your company when in reality the work is outsourced invisible to them. Make your own judgement call on transparency here. If nothing else, be sure whoever fulfills orders is held to the same standards promised when acquiring the business so customers ultimately still get what they pay for.
Case Studies: Success Stories in Drop Servicing
We offer you a moving account of success from drop service thespian Jake Sullivan. Within less than half a year, the low-profile entrepreneur achieved an astonishing return on investment of 500%. Through his choice of targeted drop servicing with a focus on graphic design and content creation, Sullivan was able to offer top-notch services at low prices. His experience also shows the effectiveness of specialization and pooling international talent.
Not to mention the phenomenal story of Lilly Chan–a single mother who turned her life around with drop servicing. She built a digital marketing service platform and contracted out the work of Search Engine Optimization while still running a profitable business. Even though she had no background in the industry, through hustle and determination she easily hit more than $10k per month — quantifying that if one tries hard enough drop servicing can be for anyone.
The Lowdown on This Gift That Keeps on Giving
Drop servicing represents an exciting new frontier in starting affordable online businesses with built-in scaling capabilities. Since you can target almost any in-demand service niche while leveraging outsourced talent and technology to power operations, the flexibility and options abound in this space for savvy entrepreneurs.
Does the prospect of selling services to eager paying customers without actually providing the manual support yourself appeal to you?
Want to explore if drop servicing belongs in your entrepreneurial toolbox?
I highly encourage further investigating this intriguing concept.
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So what do you think about drop servicing?
Could it be a fit for your own goals or ambitions to build a sustainable online income source?
I’d love to hear your thoughts and questions in the comments below!