How to Start a Drop Servicing Business in 2021 [Drop Servicing Blueprint]

Forget dropshipping and start drop servicing business in 2021 to start making money from day one.

Drop servicing is the new dog in town, and more n more online entrepreneurs are getting into this.

It is the same as dropshipping but with a twist.

In dropshipping, your profit margins can highly be up to $10 to $15. But in drop servicing, it can range from no less than $30 to $100 per order.

In this article, I’ll explain everything related to the drop servicing business model.

It will help you get started with your online entrepreneur journey.

Here is a quick overview of what I will be covering:

  • What is drop servicing, and who can start a drop servicing business?
  • Discuss some profitable and high-earning drop servicing niches.
  • A step-by-step drop servicing blueprint.
  • Secret method to get free traffic.

And at the end, we will look into methods to scaling the drop servicing business for more profits.

Now let us get to it!

What Is Drop Servicing?

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

It is like running an agency with pay-per-task employees. You only have to pay if you take their service.

Your profit margin lay in between the amount you charge a client and what you pay a freelancer.

what is drop servicing

Let us learn this with an example.

How does Drop Servicing Work?

A client wants a ghostwriter to write a blog post for their business website.

You get an order to write a 500 words article on some topic.

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

person explaining payment procedure when you start a drop servicing business
via Giphy

Once the order is confirmed.

Just go to fiverr.com and hire a freelancer to do your job.

On Fiverr, you can find the cheapest freelance workers as compared to other freelancer sites.

You can find several good freelance writers for not more than $20.

Quick Tip: Find a freelancer with lots of positive reviews and orders. This way, you can make sure to get quality content.

Forward the project and provide the exact details that your client gave and wait for them to complete.

After the freelancer finishes the project, make necessary changes (if required) and then deliver the final project to your client.

And there you make your $30.

Drop Servicing vs DropShipping

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

Dropshipping includes the selling of physical products at your marked price.

The product 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.

Is Drop Servicing Better Than Dropshipping?

To get a fair idea of which one is better, let us first see some pros and cons of drop servicing.

Drop Servicing Pros

✔️ Low Start-Up Cost: No need for upfront capital to start. All you need is a website (learn more of this below) to receive orders. No need to pay freelancers from your pocket, Only pay after you receive money from the client.

✔️ One Skill Is Enough: It is better to have sound knowledge in management, as you will be managing and dealing with clients and freelancers. Later you can even hire someone to do this job too.

✔️ High-Profit Margins: This is something I love about this business. You can earn a profit of up to $50 – $500 (depending on the service you provide) per client.

✔️ Recurring Orders: Some services demand regularity. For example: To be relevant in blogging, you need to publish new posts regularly, so there is a chance that a client could hire you on a monthly basis to manage their blog.

✔️ Extremely Low or No Returns: All you need is to make revisions till the client is satisfied with the work. You have control over quality which results in low or no returns.

It is not all sunshine and rainbows with drop servicing. Like every other online business, drop servicing has its setbacks.

Drop Servicing Cons

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)

Wrong Recruitment: Hiring someone because they offered their service at low prices can be a blunder. Low prices do not come with a quality guarantee. Do check for freelancer’s reviews and ask for work samples before you start working with them.

Experience in the Field: Choosing a service that you had no hands-on can turn out to be a complete mess. As you have no idea what it is all about. Always go with a service in which you have prior experience.

As you can see, drop servicing has a few cons, but there is a solution for every con here.

With so many positives and answers to every negative make drop servicing a much better option than dropshipping.

Is Drop Servicing 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.

Drop Servicing Ideas [Drop Service Niche]

Offer only that service for which you can hire someone to do the job on your behalf.

But it is better to do your market research very well before hopping in.

Also, 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.

Quality is the key in the drop servicing business. The better the quality, the more the clients!

Best Drop Servicing Niches

Researching and finding a good drop servicing niche can be stressful.

To help you know more about good drop servicing, here is the list of drop servicing niches from which you can select a service for yourself.

#1. Writing

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

Also, it has recurring income that makes it the number one option in drop servicing niches.

Below are the services you can offer 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 designing.

Every company needs a logo, as it is a necessity for every online business.

It grabs attention, makes a powerful first impression, is the foundation of brand identity, 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 digital communication such as the internet.

In a nutshell, if a marketing campaign involves a digital medium, 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

YouTube can be a good source of online income.

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

That is because they lack video editing skills and resources.

It is also not just about YouTube. It 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.

Here are some services you can offer in the lifestyle niche:

  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

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 Drop Servicing With No Money

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.

Below is my step-by-step guide to help you learn how to start drop servicing with almost no money or as little as a dollar.

Since the guide is to start a business with less or no investment, I have excluded every form of paid advertisement.

Here are the steps you need to follow to start drop servicing:

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

Firstly, list down (at least 10) niche services in which you have hands-on experience.

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.

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

Next, go to Fiverr.com and search for the same keyword.

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 (coming to that in a while).

Step No. 2: Find a Freelancer

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

It is not required to be an expert in the skill you are offering to the client, but it helps to have the basic knowledge in that field as it will make your work process a lot 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? 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.

You can find plenty of top-quality low-priced freelance workers 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.

Build a strong team, a professional agency with a long-term business goal.

The client will trust you more than any random freelancer.

Provide the best services to your clients by appointing the best freelance workers 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 create a brand for you.

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

Include everything about your company. Like,

  • What do you do?
  • What services do you provide?
  • How much do you charge?

Your landing page should be the answer to all your customer queries.

Once your client is sure you have everything to get work done, there would be no hesitation before hitting the order now button.

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.

Let’s get started with creating a website for your drop servicing business.

#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, or something related to your service.

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. It 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 crushingad.com, .com is a domain extension)

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

I would suggest you choose a .xyz extension if you are not going to pay for a .com extension.

It is a premium gTLD (Top Level Domain) even Google has it. Alphabet Inc., the parent company of Google, has chosen abc.xyz as its URL.

Also, your domain name does not affect your search engine rankings, as confirmed by Google.

It is the cheapest domain extension that you can get for even less than a dollar.

Steps to purchase a domain name:

  1. To get one, Go to Namecheap.com.
  2. Search for your desired domain name along with the .xyz extension. Example: mydropservicingstore.xyz
  3. Complete purchase.

Namecheap is an authentic domain seller. Namecheap began in 2000 with a mission to deliver the best domains at the best prices with the best service.

#2: Get Hosting

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

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

That means 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.

Bluehost is also a web hosting service provider.

If you can afford to invest in premium website hosting, then go with Bluehost.

Here are few benefits for choosing Bluehost over any other hosting company.

  1. Bluehost enables you to get a website up and running in minutes.
  2. Also, you get a free domain name upon signing up (usually $10-15 per year) and hosting costs as little as $2.95 per month.
  3. Bluehost comes loaded with features to help you get set up quickly.

But for now, you can choose InfinityFree to host your website for free. InfinityFree is a freemium hosting service provider with limited features.

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 free hosting:

1. Create an InfinityFree hosting account. You may see ads on the hosting panel, but there is nothing to worry they won’t be showing on your website.

create an infinityfree account

2. 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

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

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

change nameservers and point it towards your drop servicing business website

5. 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 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?

Bluehost provides you a free professional email with their hosting plan.

But, in the case of free hosting, you can opt 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.

Read more on how you can set up Zoho mail to get a free professional email.

#4. Design a Website

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

Creating a drop servicing website is not that hard.

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

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

A good drop servicing website must include the following:

  1. Must have a brief explanation about your service: The website should give your client a quick idea about who you are and what you do.
  2. Working structure: Try to explain your working procedure.
  3. Why you are better than others: Let your clients know 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 have a look at your previously completed 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. (Ask freelance worker for reviews that you can showcase)

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

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

After setting up your website, the only thing needed is customers.

There are many methods to drive traffic to a website.

It depends on what you choose. Organic, Paid, or Quick.

You need to follow different strategies in every method as all of them have different results.

There is a secret method to get free traffic without spending a dime, that 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 on promotion.

You will have to pay a commission to affiliates only if a purchase occurs.

It’s better to understand with simple math.


Marked Price = $50

Freelance Worker's Fee = $15

Affiliate Commission(25%) = $12.5

Profit = MP - (FW + AC) = 50 - (15 + 12.5) = $22.5

Configure the affiliate system to your drop servicing website to start seeing visitors.

Recruit Affiliates

Appoint only trustworthy and genuine candidates as your affiliate to promote your products.

That is because every affiliate will create backlinks that will lead customers to your website.

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

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

It is better to have a check affiliate background before recruiting it for your business.

How to recruit a worthy affiliate?

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

  1. Search google for articles related to your business.
  2. Select articles with higher rankings. Contact the owners of all of these ranking blog posts and let them know about your affiliate program.
  3. You can do the same for YouTube. Search videos related to your niche, then contact the channel owner to be your affiliate.

Here’s an email template for affiliate recruitment:

Hello {owner name},

I just came across your blog post/youtube 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 above lines 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 $__ {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}

Tweak it as per your requirement.

Step No. 5: Fulfill Clients Orders

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

Forward the details provided by the client about the project to the freelancer.

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

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 to know the mistakes you made during the process.
  • Reviews build your credibility and authority.

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

Final Thoughts on Starting a Drop Servicing Business

Drop servicing is a promising business model. However, like every other online business, it too requires hard work, time, and funds to scale up.

Let’s see a quick recap of everything learned above.

  1. First, pick a service niche and look for freelance workers in that niche.
  2. Next, build your website. It is good to go with a more reliable hosting service provider, and Bluehost is what you should choose.
  3. Get traffic for free by introducing an affiliate system.
  4. Fulfil 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 and questions in the comments below.

With more than 9 years of experience on the web, Prateek can help you earn well from your blog and build a successful online business.

We will be happy to hear your thoughts

Leave a reply

CrushingAd
Logo