So maybe you’ve been hearing about drop servicing many times, the new online business similar to drop shipping and very easier and faster means to earn online.
Well, in this article you will be learning everything on Drop servicing and how you can get started.
The real truth is, you can earn over $1000 on just a few sales and yes, it is very profitable!
Note that, this business like other businesses which requires a lot of hard work and patience from your side.
But trust me; once you are familiar with every step and know how to get started, you are just a few step away from closing high TICKET GIG.
Before, we continue. I feel it is necessary you understood this business model we are about to discuss here.
Which includes what Drop servicing is, How to start drop service, Fiverr Drop servicing, Drop service Ideas, the relationship between dropshipping vs drop servicing and also, the difference between them.
Lastly, how you can start one and scale for yourself. Now, if this interests you, then I will suggest you should keep on reading.
Let’s Move on
What is Drop Servicing?
Drop servicing is when you sell services you can’t provide yourself to clients that need it by having it done by other people eg Freelancers.
What if you think of it as dropshipping. But now you are not dropshipping physical product but rather services. Therefore, the word “drops servicing” simply means service arbitrage.
For instance; you are promoting an advertising agency for small scale businesses. For each of these small businesses that want your service will then have to pay you directly.
Now, after you most have received their payment from these business owners, you will then from the payment pay another freelancer to do the job.
An example of this freelancer websites is, Freelancer.com, Upwork, Fiverr.
The fact is that you can buy their services at a very cheap price compared to how much you’re billing your clients.
For instance, a client’s pay you for a service and you pay another freelancer to do the job.
However your profit will be the price you charged your client minus how much you will pay the freelancer to gets the job done.
Take a Look at the below image to see how it works and your potential earnings per client.
Differences Between Dropshipping and Drop servicing
Dropshipping and Drop servicing are almost similar but completely different. Dropshipping requires physical products and logistics while the other doesn’t.
Drop service is simpler to do compare to dropshipping and the potential gain are much bigger to what you can achieve with a dropshipping business.
would like to illustrate both online business models using the image as shown below, while dropshipping is the Red stream opportunities and drop service as the Blue stream opportunities.
Red Ocean Industry [Drop shipping]
As I mentioned previously, dropshipping is an online-based business where you are able to sell products to your customers without having a physical store.
A customer simply purchases an item from your store at the retail price. You then forward the customer order to your supplier who you pay at the wholesale price.
Once your order is processed by your supplier after receiving your payment, he or she then ships the product directly to your customer under your brand or business name.
So your gain in dropshipping is how much you resell the product with respect to the price your supplier sales to you.
Quite simple isn’t it?
What you have to do is to create a dropshipping platform, put customers to your online store and handle customer needs. Note, we can build for you a professional Dropshipping Store, Kindly check it out.
The rest of the main work is handled by your supplier.
Although, due to the easy way set-up and also cheap barrier entry, the race for dropshipping as greatly added.
For instance, you started your dropshipping business around 2014 compared to starting now? The competition we have in 2014 is efficiently low compared to what we are having now.
That is why it’s likened to the Red Ocean Industry because of the competition and other several barriers like selling the winning products.
Pros of Dropshipping
- Low Start-Up Cost
This cost normally requires a lot of capital to merchandise a warehouse while trying to begin a brand new e-commerce business.
For instance, instead of stocking a warehouse with products hoping that it will sell, you can begin a dropshipping business with zero lists.
- Low Fulfillment Cost
In the past other fulfilment usually demands you to do all the packaging, labelling, tracking and shipping the goods to your buyers.
With the help of dropshipping, everything is managed by the third-party supplier.what you just have is to move your customers’ order to them.
Cons of Dropshipping
The following are some of the drawbacks of operating a dropshipping business:
- Low return Margin
- Extremely competitive
- No control over product feature
- More logistic issues
- Very tough to build brand loyalty
Pros of Drop Servicing
Low Start-Up Cost
You do not need to invest in any type of services skill, everything can be outsourced to a third-party service provider that can do the job done faster.
Creating your single-page website is where you show the service you are providing which is your only start-up costs.
High Ticket Sales
Here is one of the most beautiful of starting this online business platform. Only One single sale you can even make up to $3000 total profit.
Mean While you will have to sell hundreds of products to make that single sale compared with dropshipping
You have to make money online on a monthly basis with no additional cost. Another interesting way about this is the recurring income.
Sometimes the client might decide to place you on a monthly payroll for providing goods and services for them.
And all you need is to contract it to a third party and get paid every month while doing the same thing every time.
No Skill Required
You are practically doing anything in this business that is each process can be contracted and completely automatically.
You do not need to talk to your client yourself, also you can outsource it to somebody else.
Cons of Drop Servicing
This normally comes with its own set-backs, which is typically for every business. Not all that glitter is gold when it comes to running this online business.
Freelancer Work Demands
Your freelancer may have some pending works on ground that needs to be rendered when you have an urgent business to be done.
The main process to avoid this issue is by getting more than one good freelancer that will do the work done for you.
However, make sure you have tested those freelancers or you can go through their reviews in other to be sure of who you are contracting your work to.
It is very important for you to deliver top quality services because clients cannot know that you are outsourcing the job.
Now we understand the difference between this two online business model, ok lets go back to our main FOCUS which is drop servicing.
List of Best Drop Service Niches
Below here are the best drop services niches you can get into right now and start making your money now:
1: Digital Marketing
This digital marketing niche always falls around marketing that normally requires internet-based and online digital technology.
Here is some Digital Marketing niche you can drop service:
- LinkedIn Ads
- Search Engine Optimization (SEO)
- You Tube marketing
- Facebook Advertising
- Social Media Marketing
- Google ads
- Video marketing
- Instagram Ads
- Lead generation
- Instagram Influencer
- Content marketing
2: Graphic Design
The way of addressing a problem via visual communication, simple illustration, typography or photography
Here is some graphic Design niche you can drop service:
- Ebook Design
- Banner Ads
- Business card design
Programing is the operation of designing and building a suitable computer program in other to accomplish a good computing result.
Here is some Programming niche you can drop service:
- App Development
- WordPress Development
- Plugin Creation
- Chat bots
- WooCommerce Customization
- Shopify Customization
- Web programming
- SaaS Development
A good writing niche involves the creation and sharing of online materials in other to stimulate interest in a particular product or services.
Here is some writing niche you can drop service:
- Creative writing
- Product description
- Sales copy
- Email copywriter
- Technical writing
- Ghost writing
- Guest post
- Blog post
- Ad copywriting
5: Animation and Video Creation
The Animation and Video Creation niche are under, producing an engaging instrumental such as video cartoons that can assist you tell your story more authentic.
Here is some graphic Design niche you can drop service:
- Product Photography
- Video Editing
- Visual Effects
- Live Explainer videos
- Animated Explainer Videos
- Spokespersons Videos
- Whiteboard Videos
- Short Video Ads
What you need is just pick a niche you know that you have a very basic understanding of how it works with the above list mentioned and start selling the services to your clients.