The internet has created a whole new marketplace that has exploded over the last decade or so. The rise of online businesses and the increase in online shopping has created a demand for products and services like never before.

Corresponding with this is the need for businesses to outsource services to keep up with the demands of their business while keeping their costs down. This is where Drop Servicing comes into play.

What is Drop Servicing

Drop servicing

As businesses look to outsources services such as graphic design, website content creation, and other services of this nature, the Drop Servicing industry was born.

Drop Serving puts you in the middle of the client looking to outsource services and the freelancers looking to perform the work with your Drop Servicing, a business that matches the client with the freelancer. You are looking for clients or companies that need a specific service (digital work or content creation), and you source a freelancer that can do the job. You are like a matchmaker, minus the romance.

Your business profits through Drop Servicing by adding a surcharge to the price the freelancer charges you to create the work for the client. The client pays you for the finished product, and then you pay the freelancer, minus the surcharge, which you keep as your profit.

For example, a company is looking for a digital logo for its new company and wants to pay $500 for this service. You accept the contract and offer the work out to a freelancer; however, you offer it at $250. A freelancer agrees to do the job, creates the work, and delivers it to you. You then deliver the finished product to the client, making a 100% profit along the way.

What is the difference between Drop Servicing and Drop Shipping?

As a concept, Drop Shipping is very similar to Drop Servicing. With Drop Shipping, you act as a middleman; rather than finding freelances to provide services, you find consumers for products. You source products you believe consumers will want, create a website, and sell these products with a mark-up. The consumer purchases the product through your website, with you keeping the difference between your sell price and the cost of the product.

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You do not need to own or purchase these products; match the product, having it pass through you from the product owner to the consumer.

The Advantages of Drop Servicing

There are several critical advantages to running a Drop Servicing business. These are some of the finer points:

  • Simple and easy to start : The business model is straightforward to set up and run. You don’t need to have a lot of business experience or extensive knowledge about the services you promote. You can be up and running your business in a relatively short period.
  • Small startup cost: Like all businesses, you will need to invest some capital in starting. However, Drop Shipping does not require a large startup fund. Initial fees include acquiring a domain name and creating a website, which is very economical these days. How much you spend on marketing to find clients fits into whatever budget you have available.
  • It is low risk: You risk only what you can easily budget and afford. The more significant investment is in your time, but if you’re willing to put the time in to build your business, your efforts will be rewarded. Remember, you are not buying any services or products. You are simply matching producers with clients.

The Disadvantages of Drop Servicing

Like most things in life, there are pros and cons. Drop Servicing is no different. But, not to worry, if you are willing to commit the time and effort to learn, working through your early mistakes to find solutions, there will be more pros than cons, keeping you motivated and ideally successful over time.

Here are a few disadvantages to be aware of:

  • Quality control – You don’t have complete control over the quality of the work. Sometimes you may hire the wrong freelancer, it happens, and they don’t deliver as promised. But over time, as you work with more and more freelancers, you will develop a pool of talent that will help you avoid this misstep altogether. Quality control falls to you until then, as the client will associate the work with you, not the freelancer.
  • Delivery of work – If by chance your freelancer lets you down, delivering bad work, delivering work late, or worse, not at all, it may cost you. In some instances, you can overcome the delay. However, in others, you may lose the order. It may not cost you financially, but your reputation may take a hit, and you might lose the client. Again, all this will be overcome as you build a stable talent.
  • Client Relations – This may not sound like a negative, but you have to be good with people to be effective here. This includes your clients and your freelancers. Anyone who has worked in the customer service industry knows that clients can be demanding, and freelancers can be hard to manage. Trust me when I say this will probably be the most time-consuming aspect of your business.

How To Start Your New Business

Even though Drop Serving is an economical and relatively easy business model to set up, there are a few things to be aware of as you begin setting up your business.

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Selecting a Niche:

It is best better to start with a niche. Narrowing down your focus will help you with your research in finding clients, as you can focus your efforts on one area. This will also help you locate a stable of talent who can service the contracts you find. Further, it shouldn’t be too difficult to find 2-3 freelancers who do quality work and deliver on time.

Build Your Website:

You need a website to sell your services. This can be created through Shopify, or you can create a website yourself in WordPress. It’s relatively easy to make your website these days, as most platforms offer tutorials and online assistance. If creating a website is not your skillset, you can hire someone to do it for you.

Social Media:

If you don’t want to manage a website, you can go only with Social Media. On your Social Media sites, you can attach a professional photo relating to the services you provide. Remember to write a compelling bio for you and your services. Take the time to create Social Media profiles for your services. This is a free way to market your services and a good vehicle for clients to understand what you offer and seek you out.

Define Your Service:

Whether you use a website or Social Media channels to market your Drop Servicing business, it is essential to adequately describe what you are offering and what you can do for your clients. You want to be very clear here, allowing for no confusion. You can either write it yourself or hire someone to do it for you. If you hire a freelancer, perhaps offer work in exchange for the copy you require or a reduced rate with the promise of more work.

Focus your content on what you can do, not who you are. While the client will want to know a little about you, they will want to know more about what you can do for them. This will be key in their decision to hire your services or not. Therefore, define your services for the client’s benefit, not your own.

Set Your Rates:

Your price needs to take into account two considerations: What the client will pay for the work and how much you need to pay your freelancer for quality work. Set your price too high, and you may have a difficult time finding clients. Set it too low, and you may be reducing your profit margin as you need to offer a fair rate to the freelancer to complete the work.

Knowing the niche, you are working in will help you understand where your pricing needs to be. Having a stable of regular freelancers will also help you set your rates as you will know what you will need to pay them for quality work.

Marketing Your Service:

So, you picked your niche, made a website and social media accounts, made a deal with freelancers, and now you’re ready for the next step. Marketing your services is one of the more essential steps in establishing your business. You need to let prospective clients know you exist.

Proper marketing will help you achieve this. There are dozens of free articles online about business marketing, several YouTube videos, and numerous free courses that will teach you how to launch and position your business for success. While establishing a Drop Service may not be complicated or expensive, it takes time to develop yourself as a player in your chosen niche. Therefore, the better you market your services, the quicker you will be profitable.

Offer Amazing Customer Support:

How many businesses do you know that have insufficient customer support? I can tell you that they have fewer customers than their competitors, who have excellent customer support. Customer service is what separates one business from another.

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Several companies offer exceptional products, but those complement this with outstanding customer service that survives – and thrive. Response time is key, both with clients and freelances (remember the client relations we spoke about earlier?) Don’t make them wait. If they contact you, get back to them right away.

Even if you don’t have an immediate answer or solution for them, the mere fact that you contacted them right away will go a long way in solidifying your relationship with them. After all, isn’t most all businesses built on client relationships?

Where to find Freelancers:

In the Drop Servicing business, you need great, reliable, talented freelancers. Their services are really what you are offering. Without them, you have no business. A great freelancer will always do their work on time, be willing to do revisions, and give their best to deliver quality work. Luckily access to the best freelancers is relatively easy.

Here are three sites that offer freelancers who produce quality work:

  • Upwork.com – Upwork is a fantastic place to find freelancers in all fields, relatively to your niche. For example, if you type ‘graphics designer’ into the search tab, a long list of freelancers in this field will appear. Those on the first page are usually the best, based upon client reviews and the number of completed contracts. But check their pricing. You may not be able to afford them based on your pricing model.
  • Freelancer.com – Very similar to Upwork.
  • Fiverr – Fiverr is also like the previous two. However, here, you can sort freelancers by customer feedback. This is a valuable tool that may add a shortcut to your search.

Before selecting a freelancer, check their online portfolio, work history, and customer feedback.

Drop Servicing Niches:

When speaking with clients, you want to sound as knowledgeable as possible about the services you provide. Therefore, the best Drop Service for your business is the ones you are interested in and familiar with. If you want to branch out into a niche new to you, make sure you do a little basic research on the topic before you get started. Then, as you develop your business, your knowledge will increase with each client you take on.

If you don’t have any idea what service you would like to sell, you might want to consider these niches:

  • Content Writing
  • Blog posting
  • Social media
  • App development
  • Programming
  • Graphics design
  • Website creating
  • Marketing
  • SEO

Conclusion

The Drop Servicing business model is quite easy to understand. It is relatively easy to start, with low startup costs, considering other business models. But, like all other business ventures, it will take a little time before you are up and running a profitable, thriving business.

Learn everything you can before you start, be knowledgeable on your services, be customer-focused, and find reliable freelancers. Before long, with a bit of time and effort, you will be rewarded with a profitable, enjoyable Drop Shipping business.