How to Start a Drop Servicing Business

How to Start a Drop Servicing Business: [The Only Guide You Need]

So, you just heard the term drop servicing and got intrigued by how you could start a drop servicing business of your own.

Drop servicing is the new dog in town, a business model that started gaining traction in 2019.

drop servicing google trends

Since then, the trend is going upwards, and more n more individuals are getting into this.

But that does not mean you are late to start.

There are a plethora of opportunities right now for you.

In this article, I will teach you how to start a profitable drop servicing business from scratch.

A business you can start from less than a dollar and still earn thousands of dollars from it.

Yes, you heard it right.

It is thousands of dollars if you are ready to do everything precisely.

As though it sounds lucrative and easy, it is not any getting rich quick Ponzi scheme.

This business will not run like magic.

You will have to work for it and be consistent in doing so.

Let not waste more of your time.

Here you’ll learn everything about this trending online business (drop servicing) and how you can get started yourself.

Also, in this article, I will be covering:

  • For who is this drop servicing business for
  • Some profitable and high earning drop servicing niches
  • A step-by-step drop servicing blueprint to help you get started
  • The secret quick way to get free traffic for your business
  • Scaling drop servicing business for more profits

Ladies and Gentlemen, fasten your seat belts. It is going to be a long one!

Let us start by looking at what drop servicing is.

[A quick disclaimer – The following posts contain affiliate links, which means I earn a small amount of commission that adds no extra cost to you]

What Is Drop Servicing?

Drop servicing is a business model where you act as a seller for a specific service but get the work done by freelancers.

It is like running an agency with pay-per-task employees.

You only pay if they complete the project for you.

The profit comes when you sell your service for a much higher amount to your client than you pay a freelancer.

Let us learn this with an example:

Your client has a website and wants to write a blog post for that.

But since he knows not much about writing a blog post, he is confused about where to start.

You hop in and pitch your blog writing service and how you can solve their problem.

Let us say you quote $50 for a well-written SEO-friendly article. The client agrees and pays you.

via Giphy

You go to fiverr.com and hire a freelancer, provide him the details get the work done for $20.

Once finished, you deliver it to your client, and you get a profit of $30.

The reason why I recommend Fiverr is that it has the cheapest freelancer as compared to other freelancer sites.

(Drop Servicing VS Drop Shipping) How Drop Servicing Work?

You may have already heard of dropshipping. Dropshipping and drop servicing are likely identical.

In drop shipping, you become the seller for physical products like coffee mugs or yoga pants at a marked price.

The supplier is the one who handles the manufacturing, shipping, and returns of the product.

Dropshipping requires physical product and logistics, while drop servicing does not.

As the name suggests, drop servicing establishes over service fulfillment.

Drop service is relatively easier to do as compare to dropshipping.

The intended profits are way higher than what you can make with a dropshipping business.

what is drop servicing

Why is Drop Servicing Better?

To get into why drop servicing is better, let us first see some pros and cons.

Drop Servicing Pros

  1. Low Start-Up Cost: You do not have to invest much in starting. All you need is a website (been taught below). You do not pay freelancers upfront. You only pay after you receive money from the client.
  2. One Skill Is Enough: The only skill you require is management, as you will be managing and dealing with clients and freelancers. Later you can even hire someone to do that too.
  3. High-Profit Margins: This is something I love about this business. You can earn up to $50 – $500 (depending on the service you provide) per client.
  4. Recurring Orders: Some services demand regularity. For example blogging, you need to publish new posts regularly, so there is a chance that a client could hire you monthly to manage their blog.
  5. Extremely Low or No Returns: Labor is not something that you can return. Provide revisions until the client is satisfied. But if you want, you can provide money refunds for no satisfaction.

It is not all sunshine and rainbows with drop servicing. It also has its setbacks, which are natural in every business.

Drop Servicing Cons

  1. Active Orders: When you outsource, there is a chance your freelancer could already have active projects on their own that can lead to delayed deliveries. (Hire more than one freelancer to deal with the situations like this)
  2. Wrong Recruitment: You hired someone because they offered their service at low prices. Low prices do not come with a quality guarantee. Do check their reviews and contact for work samples before you start working with them.
  3. Double-dealing: You portray yourself as a company that has employees working for you. But in reality, you are hiring freelancers to do your job. So it is your responsibility to make sure your client has no idea about you outsourcing the service. (can be done by providing the TOP quality service so that clients never have any doubts about you)

There is a solution for every con in the drop servicing business.

All of this makes it a much better option than drop shipping.

Is Drop Servicing Business Legal?

Absolutely, yes. You are doing nothing wrong.

Drop servicing is a legitimate business strategy, and nothing about it makes it illegal!

There is nothing against the law about reselling someone else services and making money from the price difference.

The fact is, drop servicing works just like any other business model: Buy low, sell high.

Let us return to our primary FOCUS, which is how you could start a drop servicing business.

Drop Servicing Ideas [Drop Service Niche]

You must be thinking, what services to provide?

The answer is simple you can offer any service as a drop servicer for which you can find a freelancer.

But it will be proper if you do your market research very well before hopping in.

It is preferred to have a basic understanding of the service you’re going to provide.

Through this, you’ll be able to perform better quality control before handing over the completed project to your client.

Always keep repeating to yourself, QUALITY is the key in drop servicing!

So what services can you dropship?

Best Drop Servicing Niches

The following are the drop servicing niches you may select right now to start generating money quickly:

#1. Writing

The writing niche is vast. You have plenty of service opportunities to offer your clients.

The reason I put this in the first place is that it can have multiple recurring clients.

For example, Blog posting is something that needs regularity and consistency.

If a client likes your single blog writing service, you can offer him multiple blog posts for that particular month at a discounted price.

By this, your client gets regular content to post on their website, and you get a long-term paying client.

Below are the services you can dropship around this niche:

  1. Articles & Blog Posts
  2. Translation
  3. Proofreading & Editing
  4. Resume Writing
  5. Cover Letters
  6. LinkedIn Profiles
  7. Ad Copy
  8. Sales Copy
  9. Social Media Copy
  10. Email Copy
  11. Book & eBook Writing
  12. Ghost Writing
  13. Scriptwriting
  14. Podcast Writing
  15. Creative Writing
  16. Brand Voice & Tone
  17. UX Writing
  18. Speechwriting
  19. eLearning Content Development
  20. Website Content
  21. Product Descriptions
  22. Business Names & Slogans
  23. Technical Writing
  24. Legal Writing
  25. Transcripts

#2. Graphic Designing

The second most in-demand niche for drop servicing is graphic design.

Every company needs a logo, and also it is essential to have one.

It grabs attention, makes a powerful first impression, is the foundation of brand identity, is memorable, separates from the competition, and fosters brand loyalty.

Apart from logo designing, you can also offer these services to your clients:

  1. Business Card Design
  2. YouTube & Facebook Banner Design
  3. Illustration
  4. Podcast Cover Art
  5. Website Design
  6. Landing Page Design
  7. Email Design
  8. Packaging Design
  9. Book Cover Design
  10. Album Cover Design
  11. Photoshop Editing
  12. Presentation Design
  13. Infographic Design
  14. Jewelry Design
  15. T-shirts and Merchandise Designing
  16. Flyer Design
  17. Brochure Design
  18. Invitation Design
  19. Graphics for streamers

#3. Digital Marketing

Digital marketing is also called online marketing.

It is a process when a brand connects with its potential customers through forms of digital communication such as the internet.

In a nutshell, if a marketing campaign involves digital communication, it is digital marketing.

The services you can opt for in this niche are:

  1. Social Media Marketing
  2. Social Media Advertising
  3. Local SEO
  4. Content Marketing
  5. Email Marketing
  6. Influencer Marketing
  7. Affiliate Marketing
  8. Video Marketing
  9. Search Engine Marketing
  10. Display Advertising

#4. Video & Animation

Being a YouTuber is every others fascination.

There may be times when you see a video and think of starting a YouTube channel for yourself.

My friend, you are not the only one with that thought.

Many other individuals have the idea, story, and theme for their channel, yet they do not find a way to put that in a video.

That because they lack video editing skills and resources.

It is also not just about YouTube that can be anything related to business that requires video production.

You can demand a viable amount of money from your clients in these services:

  1. Video Editing
  2. Whiteboard & Animated Explainers
  3. Short Video Ads for Instagram and Facebook
  4. Logo Animation
  5. Typography Video
  6. Unboxing Videos
  7. Article to Video
  8. E-commerce Product Videos
  9. Game Trailers
  10. Book Trailers
  11. Lyrics & Music Videos
  12. Live-Action Explainers

#5. Lifestyle

Lifestyle is something that is not going out of style very soon.

You may be wondering how come you are going to drop ship lifestyle.

You can understand well when you see the list of the services in this niche.

Here are they:

  1. Online Tutoring
  2. Astrology and Psychics
  3. Modeling and Acting
  4. Health, Nutrition, and Fitness
  5. Dance Lessons
  6. Life Coaching
  7. Personal Styling
  8. Cooking Lessons

Now I think you have an idea of what I mean.

You have to hire a freelancer to provide one-to-one personalized coaching or training sessions.

The above services get a decent amount of searches every month.

Use Google Trends to get more idea of the demand by searching for the service name.

How to Start a Drop Servicing Business With Less Than $1

Above we learned about the business concept, how it works, and some profitable niches to choose for drop servicing.

Now our next step is how to start the actual drop servicing business.

In this complete step-by-step guide, you will learn how to start with almost no money or as little as a dollar.

You do not need to purchase any other drop servicing course.

I have tried my best to cover everything to start a drop servicing business.

But since I wanted you to start a business with less or no investment, I have excluded Facebook Ads, Google Ads, or any other paid advertisements.

You can read my guide on how to set up ads for your drop servicing business for that.

Also, if you want to explore more about this drop servicing business, you are free to go for any of the courses provided on different platforms.

I am not going to list any of them. You will have to find it on your own.

The steps to start drop servicing are:

  1. Choose a Service
  2. Find Your Freelancer
  3. Create a Website
  4. Get Traffic on Your Drop Servicing Website
  5. Fulfill Clients Orders

And that is the blueprint for the drop servicing business.

Step No. 1: Choose a Service

Your first step is to decide what service you are going to offer and to whom.

Do some research before choosing a niche.

Firstly, list down (at least 10) niche services for which you already have the basic knowledge.

Look for the demand of that service by using the free tool provided by Google.

For example, let say you want to provide a service for making unboxing videos.

To start researching, go to Google Trends.

In the explore topics section, enter the keyword like in our case, it is unboxing videos.

unboxing videos drop servicing google trends

As you see, there are ups and downs though demand for such videos is always there.

Next, go to Fiverr.com and search or browse Video & Animation section for the same.

The number of reviews on every freelancer shows that there is demand for such service.

The only thing you need now is to find potential customers. (do not worry, below you will learn how to do this too)

After determining your service niche, the next step is to find a freelancer that will get the work done for you.

Step No. 2: Find Your Freelancer

Your next step is to find people to who you’ll outsource the work.

You do not need to be an expert in the skill you are drop servicing, but it helps to have the basic knowledge for the same.

And will probably make your life easier.

It is crucial because the drop servicing business runs on quality and trust.

For example, you choose blog writing as your niche, but you know nothing about it. Then how are you going to judge the quality of work provided by your freelancer?

It can also happen that you asked a freelancer to do something, and it does opposite to your instructions. How are you going to review that?

So before starting, get some basic knowledge first.

One of the best and trustworthy places to find a freelancer is Fiverr.com.

I recommend this, is because you can find plenty of top-quality low-priced freelancers on here.

Take your time reviewing their profile and service rating before selecting anyone.

You can also contact them and ask for bulk order discounts, work samples that you can display on your website.

No one hates extra money, so they will be all ready to help.

Oh, wait!

You must be wondering why a freelancer will work for you. It can directly approach the client and get paid more than what you offer?

The answer is if he could have, he would not be here on Fiverr.

Not everyone is good at marketing themselves, and that is what freelancers lack.

See it like this way.

Your profit is your fee for marketing to your freelancer.

The same is for the client.

I know they can directly hire someone to do their work from any of the freelancer sites. Why they need you?

They need you because you are not just someone who is just hiring some random freelancers to get the job done.

You are building a team, a professional agency with a long-term business goal.

Your reliability is more than any random freelancer.

Provide the best services to your clients by appointing the best freelancers in your team.

Also, it will be better if you have more than one freelancer for a single service.

This way, you have an alternative in time of emergency.

Step No. 3: Create a Website

Now that you have finalized your niche and have freelancers sorted, it is time to start creating a brand for you.

To start, firstly you need to have a website for your company.

Include everything about your company.

What do you do?

What services do you provide?

How much do you charge?

Your landing page (the webpage that your customer see first) should be the answer to all your customer queries.

Once he figures you have everything to get work done, there would be no hesitation in his mind before hitting the Order now button.

But how will you create one for yourself? Do you need to hire a website developer?

It is easy! Yes and No.

You can hire a web developer to create a website for you, but it is not at all required.

You can build your drop servicing business website on your own.

I will say no more. The best is to head-on and show you how.

#1: Choose a Domain Name

A domain name is an online identity for your business website.

Why do you need a domain name?

Having a domain name and email address (more about it below) will give you and your business a more professional look.

Another reason for a business to register a domain name is to protect copyrights and trademarks, build creditability, increase brand awareness and search engine positioning.

Your domain name can be anything.

It can be your name, company name, something related to your service, or even the name of your dog.

It can be anything unless the content continues to serve the purpose.

Five characteristics of a good domain name:

  1. It is short & sweet
  2. Easy to remember
  3. Have a .com extension
  4. Has no hyphens and numbers
  5. Is descriptive

To register a domain, decide which domain extension you want.

A domain extension is the combination of characters following the period in a web address. (like in introverto.com, .com is a domain extension)

Free domain names with .tk and .ml do not work anymore, and I also condemn the use of such.

I would suggest you go with .xyz.

It is a premium gTLD (Top Level Domain) even Google loves it.

Yes, you heard it right.

Alphabet Inc., the parent company of Google, has chosen abc.xyz as its URL.

If Google likes it, no doubt it got to be a fit for search engine results.

The best part of it is that it is the cheapest domain extension.

Price is even less than a dollar.

To get one, Go to Namecheap.com.

Search for your desired domain name along with the .xyz extension.

Example: mydropservicingstore.xyz

Complete purchase once it is available.

My tip to get the best price for .com or .co.uk domain is to never rely on a single source.

Research yourself.

Search on Google for the cheap domain name. Browse multiple websites.

Check the authenticity of the website by reading its customer reviews and going through its Trustpilot score.

#2: Get Hosting

Once you have your domain name registered second thing that you require to run your drop servicing business website is hosting.

Web hosting is an online service that allows you to publish your website files on the internet.

So, anyone who has access to the internet has access to your website.

In practice, it usually refers to the service you get from a web hosting provider.

A web hosting provider is a company that provides you space to upload and manage your website files.

There are plenty of web hosting service providers.

For example:

  1. Godaddy
  2. Hostinger
  3. Bluehost
  4. Hostgator
  5. SiteGround

And many more.

But as I said, I will be showing you how you can host your website for free.

To host your website for free, Go to InfinityFree.com

InfinityFree is a free hosting service provider.

Since you will be having fewer website files and web pages, this is the best option for you.

Here is how you can set up your hosting:

  1. Sign up for InfinityFree hosting. You may see ads on their platform but will not be showing on your website.

    sign up for infinityfree hosting

  2. After successful sign up click on create account.

    create account

  3. Choose a custom domain. Enter the domain name you purchased, click search domain, set up a password, and then click on create account button.

    choose custom domain

  4. Now point your domain to InfinityFree. To do that, go to your domain registrar (from where you purchased the domain name).

  5. Find DNS/Nameservers and change the nameservers to the one provided by InfinityFree. (please remember domain propagation takes a little time, so wait a few hours)

    change name servers

  6. You will start seeing the default webpage once the domain gets configured.

#3. Get a Professional Email

A professional email address is an email that has your business name on it.

For example, [email protected] is a professional email address.

Your customers and other businesses will find a professional email address more trustworthy.

Why should you have a professional email?

A professional email address using your domain name makes it easy for customers to look up your company and your website for more information.

It is a great marketing asset – any email you send or any time you leave your contact details with someone. You are also giving them an easy link to your website.

How can you get a professional email?

Most of the hosting providers also provide you a free professional email.

But, in the case of free hosting, and if your hosting provider does not have such an option, I have a solution for you.

You can go for Zoho mail. Zoho mail is a free (with limitations) professional email provider.

The forever free plan from Zoho allows you to set up five user accounts with 5GB/user storage space.

And that is more than enough for you at the beginning.

To know more, read my post on how you can get a business email for free.

#4. Design a Website

Now that you have set up everything, it is time to start designing your website.

Creating a drop servicing website is not that hard.

All you need is a single landing page or sales page that includes everything about the service you’re selling.

You do not need some funky design or a high-end designer for all of that. Just keep it sweet and simple.

A good drop servicing website must include the following:

  1. Must have a brief explanation about your service. The website should tell your customer that who you are and what you do.
  2. Working structure. Let your client how you process the work.
  3. Why choose you. Tell your clients why you are the best choice for the service they need.
  4. Multiple pricing packages: The tier pricing options help customers decide which pricing option suits best for them.
  5. Include work samples: Let your customer see your previously done projects. (You can use the sample projects provided by the freelancer)
  6. Customer reviews: Never forget to include customer reviews, as reviews help in building trust. Once the client is sure about your work, he will not hesitate to contact you.

Apart from this, do not forget to add pages like contact, privacy policy, refund policy, and terms & conditions.

Read my guide on how to design a drop servicing website without coding knowledge for more information.

Step No. 4: Get Traffic on Your Drop Servicing Website

Now your website is all up and running.

All you need is customers for your drop servicing website.

There are many methods you can drive traffic to your website.

It depends on you which method you choose.

Paid, Free, Quick, or Time-consuming.

All of them have different outcomes.

In the paid method, you can set up ads to drive traffic to your drop servicing website.

The free and time-consuming yet effective way to get traffic is relying on Google following all SEO practices.

The free method will help you in the long run once you build your authority.

Now let me introduce the free and quick method.

The only method you can get free traffic without spending a dime, and that too quickly is affiliate marketing.

Configure Affiliate System for Your Website

Affiliate marketing is the easiest way to showcase your product to potential customers without spending any money at the front.

You will only have to pay a commission to your affiliates only if they make a sale.

For example- You list service at a marked price of $50. An affiliate sends traffic to your webpage.

The customer orders a service from your website.

You promised to pay your affiliates a commission of 25% for every sale they make.

The cost price (the amount your freelancer will charge) for that particular service is $15.

Let us do the math.

Marked Price = $50

Affiliate Commission(25%) = $12.5

Cost Price = $15

Your profit = MP – AC + CP = 50 – 12.5 + 15 = $22.5

There you are. You made a profit of $22.5 from one client sent by your affiliate.

And I know you are smart enough to calculate your earnings for every other client your affiliate will send.

Continue reading: How to set up an affiliate system on your drop servicing website to know more.

Recruit Affiliates

Once you have configured the affiliate system to your drop servicing website, it is time to recruit affiliates.

Do remember only to appoint a trustworthy and genuine candidate as your affiliate to promote your products.

That because every affiliate will create backlinks to your website.

A rookie with no source of traffic will try all shady means to drive traffic.

With no targeted traffic, you will have only visitors with no sales.

Here goes an example:

Imagine this you chose to provide Local SEO as a drop servicing service. But the traffic coming from your affiliate has no need or interest in local SEO.

It will lead to a high bounce rate that could adversely affect your website SEO.

It signals to Google that users find this page irrelevant, which leads to lower SERP rankings.

So how can you avoid it? How to recruit a worthy affiliate?

Do this to recruit a genuine affiliate with authentic targeted traffic:

  1. Go to Google.com and search for How to with your keyword (your niche) example, How to Business Card Design.
  2. Now contact the owners of all of these ranking blog posts and tell them about your affiliate program.
  3. Secondly, you can do the same on YouTube. Find contact email in the About section of the channel.

Now, if you are wondering what to say?

Then do not fear when I am here.

Below is the template for that too.

Hello {owner name},
I just read/saw your blog post/video –
{insert blog/video link}

And I must say that it is well-researched and provides a satisfactory explanation.

My name is {your name}, and I am an affiliates recruitment manager for {your company}.

We are a {who you are} that provides {what you do}.

As I see, you have a passion for helping new bloggers.

Those thriving to become a blogger and start earning from it. {change as per your service}

We both know blogging needs consistency and most of the new bloggers lack such.

Here is what we come in. {explain more about your business}

To help us achieve our goal of {your future goals}

we would love to have you as our respected affiliate.

We offer multiple commission slabs that include one-time and recurring commissions.

Being our affiliate, you could earn up to $106 {change as per your pricing} per referral.

We have a 90 days cookie duration and pay our affiliates twice a month with no minimum payout threshold.

Click on the link below to sign up and know more about how you could maximize your affiliate revenue.

{your affiliate page link}

We are looking forward to seeing you on our affiliate team.

If you have any questions regarding our affiliate program, please write to me at {your professional email}

I will be happy to assist you.

Regards,
{your name}
{designation}
{company name}

Step No. 5: Fulfilling Clients Orders

Finally, the moment what you were waiting for so long.

Once you have orders coming in, head over to Fiverr and outsource the service to the freelancer.

Pass on all the details provided by the client about the project to the freelancer.

You can make this process simple by implementing a questionnaire page to your drop servicing website.

Read this to know how you can do so.

Forward the draft to your client and ask for any revisions.

Do make revisions if asked and finalize the project asap.

Also, ask the client to leave feedback and review for your service.

Feedback helps you learn about the mistakes you made during the process.

Reviews build your credibility and authority.

Once you start earning enough, you could hire a virtual assistant to manage your business. This how you can run your drop servicing business on autopilot.

Conclusion

Drop servicing is a promising business model with so much yet to be explored.

However, like every other online business, it also requires your hard work, time, and funds to scale up.

Let us recall everything once again.

First, pick a service niche and look for freelancers in that niche. They will be the ones you will outsource the service.

Next, build your website.

I already taught you how to do it for free.

But if you want to scale up your business and want a more reliable hosting service provider. Bluehost is what you should choose.

Get traffic for free by introducing an affiliate system.

Fulfill customer orders and maintain 100% customer satisfaction. (hard but not impossible)

And that is all how you can start your own drop servicing business.

Let me know your thoughts in the comments below.

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