Drop Servicing is a topic that I think is not covered a lot right now & that’s why I’m writing this complete Dropservicing guide.
In this guide, I’ve broken down Drop Servicing to small parts/points & we’ll go through each part/point & try to understand the whole Drop Servicing business.
If you think why you should trust me for the information I’m going to provide you below – because I have done dropservicing business previously, I have no courses whatsoever to sell to you guys, it’s just a FREE blog.
So if you are looking to start a Drop Servicing business in 2020, you are on the right blog!
I’ll show you the methods I used to get clients & some new ways too so you can jump-start your Drop Servicing business.
So let’s dive in!
Drop Servicing: The Definitive Guide 2020
This Dropservicing guide is broken down into categories & sub-categories which help cover the topic a lot easier than without them. So let’s start.
What is Drop Servicing
Drop Servicing is a business in which you sell services instead of products & outsource those services to freelancers on websites like Fivver, Upwork, PPH, etc.
In simple words, Client pays you to fulfill his need for a particular service that you are offering & then you pay freelancers to fulfill those services instead of you doing it yourself.
The main concept of Drop Servicing started popping up in mid-2019 but people have been doing Drop Servicing themselves for a long time, they just don’t recognize it.
For example, I’ve done it for a long time even before this was a thing.
When I first started out, I also use to undertake web designing jobs (I didn’t know how to do it) & outsource them to a freelancer on Fiveer for $20 (WHAT??) & sell it for $300-$350.
The business is actually great if done with patience & professionalism.
We’ll get into the nitty-gritty of Drop Servicing later, let’s continue with our 2nd point.
Getting Started With Drop Servicing
So before you totally make up your mind about starting a Drop Servicing business, I’ll talk a few points to consider.
Starting with Drop Servicing is very easy but anything that is easy to start requires a time Investment later.
The 2 main things I’ll like to point out is –
1. Capital Required
You don’t actually need a lot of money to start Drop Servicing, but I’d say at least keeping $100 aside is good for you.
For starters Drop servicing business requires a website where you can show your clients your previous works (portfolio), talk about your business & stuff like that.
You may require many tools such as if you start a Graphic designing business then you might want to Invest in Canva Pro (Even if you outsource the work, you should have some knowledge in that area).
2. Time Investment
Drop servicing business requires you to put a lot of time in the business Instead of money.
Getting paying clients is hard because services don’t sell for $5-$10 but for $500-$1000 & it takes time to get clients that trust you.
We’ll talk more about this in the “How to Find Clients for Drop Servicing” section below.
3. Skills Required
Before starting a Dropservicing business in any niche, make sure you have some skills in that niche.
Starting a business in a niche that you are not familiar with will only result in loss.
For example, if you are drop servicing Graphic designing services, make sure you have some skills & knowledge about graphic designing.
At least some basic skills & knowledge.
What to Drop Service?
Now we get to the main part of deciding what niche to choose as this is going to be a long term business & not something you can quit after working 2-3 months on it.
Unlike Dropshipping, Drop servicing requires expertise because here you are selling services & you have to personally close clients & no FB ad or Insta ad will do that for you.
So as I said before, before choosing any niche make sure you have some basic skills & knowledge in that niche.
Don’t open a web design business just because it pays higher because the chances are if you don’t know anything about that business, you can’t close clients & eventually fail.
So let’s look at some niches that you can drop service.
- Web Designing
- Graphic Designing
- Freelance Blog Writing
- VA Services
- Social Media Marketing/Management
- Photo / Video Editings
- Photography/Videography Services
I can go on & on about the list because every niche has many sub-niches like SEO has Backlinks building agencies, Web Designing has Web Management Agencies, etc.
But deciding on what services you want to provide is a pretty big deal because let take my example.
I good at Graphic Designing & Web Designing both.
But if I have to choose I’ll always choose We design because that’s what I’m passionate about & It will give me a headache to run a Graphic designing business.
Because, Drop servicing is a long term business & heavily depends on referral clients, choosing a business niche that you like is the key to a successful Drop service business.
This also helps you like if you don’t know anything about business then Freelancer can cheat you & ask for big money when the task will take only 5 mins & that’s when your knowledge in the business comes handy.
How to Find Clients for Drop Servicing
I actually wrote a guest post on how to find high paying clients for a website. Let me know if you want the link in the comment section down below.
There are quite a few ways you can find clients online & offline but I’ll only show how to online as I have more experience with that.
Okау, so thе first ԛuеѕtіоn thаt уоu muѕt ask уоurѕеlf іѕ – Whо іѕ Mу Drеаm Buyer? & where аrе thеу Cоngrеgаtіng Onlіnе?
Let mе tеll уоu іtѕ аnѕwеr in 4 wоrdѕ – Fасеbооk & Rеddіt Grоuрѕ
Anу mаrkеt, асtіvіtу or nісhе thаt уоu target will hаvе a dеdісаtеd and рrоасtіvе Facebook group аrоund іt.
Thе categories can rаngе frоm fіtnеѕѕ, entrepreneurship, or something completely dіffеrеnt. Evеn if you рlаn tо wоrk аѕ a ѕосіаl media mаnаgеr, you would find a Facebook group for thаt too.
These grоuрѕ аrеn’t just оnlіnе groups, but they аlѕо еxіѕt іn еvеrу ѕіnglе сіtу аnd соuntrу оf the wоrld. And when уоu join thеѕе grоuрѕ & bесоmе a member, you саn nоtісе реорlе asking ԛuеѕtіоnѕ аnd ѕееkіng assistance fоr thеіr issues еvеn 1000ѕ оf times.
Another оnlіnе рlаtfоrm thаt wоrkѕ оn thе ѕаmе соnсерt аѕ Facebook іѕ – Rеddіt. Known as thе gоldmіnе оf іnfоrmаtіоn, Rеddіt hаѕ dеdісаtеd соmmunіtіеѕ to hеlр іtѕ uѕеrѕ with thеіr іѕѕuеѕ.
These Rеddіt communities аrе рrоасtіvе аnd uѕеrѕ post nearly 100s оf ԛuеѕtіоnѕ hеrе аѕ wеll оn an еvеrуdау bаѕіѕ.
Sо, thе ultimate ԛuеѕtіоn іѕ – how саn уоu benefit from thеѕе grоuрѕ?
Thе еаѕіеѕt trісk is to еngаgе with ѕuсh реорlе whо роѕt rеgulаr ԛuеrіеѕ аnd seek уоur еxреrtіѕе оn dіffеrеnt tорісѕ.
Word оf Cаutіоn: NEVER TRY TO PITCH THEM DIRECTLY.
I реrѕоnаllу nеvеr truѕt people who simply comment on mу роѕt offering mе the solution іn rеturn of XYZ buсkѕ. Dо you truѕt such kіnd оf реорlе?
Tо engage bеttеr wіth people who роѕt queries, уоu fіrѕt need tо undеrѕtаnd thеіr ԛuеrу and offer thеm a genuine solution. A сlаѕѕіс еxаmрlе оf уоur solution саn lооk ѕоmеthіng lіkе this:
If you fоllоw thіѕ рrасtісе соnѕіѕtеntlу аnd help оut 2-4 people еасh dау, you wіll garner multірlе lеаdѕ wіthіn 1-2 weeks. Additionally, уоu mіght gеt уоur fіrѕt high рауіng сlіеnt wіthоut ѕреndіng a ѕіnglе dime.
How to OutSource
Now that your business is decided & you have your buyer ready, it’s time to outsource the service you just sold.
Now that is quite the easy part but still worth paying attention too.
You can easily find people of Freelancer, Upwork, PHP, Fiverr, etc. to do your job.
People found on Fiverr can be the cheapest as I’ve used them personally & are great too.
Freelancer has a lot of spam freelancers, Upwork has slightly high-quality freelancers, I’ve never used PHP & so Fiverr is my way to go.
But do your due diligence on the Freelancer you are hiring, their past work, their quality of work & so on.
Because if your quality is high, you’ll get more referrals & good business from just 2-3 clients.
Pros of Drop Servicing
Now, these are some of the pros compared to the Dropshipping business as it’s the same model.
- Easy Startup
- Easily Scalable
- Not affected by Market (Like coronavirus or Any manufacturer that can create problems)
- Works Online as well as Offline
- No limitations (Except Dropservicing Doctor, Medical, Illegal services)
- Can build a reputed servicing company
Cons of Drop Servicing
Now, these are some of the cons compared to the Dropshipping business as it’s the same model.
- Can’t sell & exit the business
- Finding clients is difficult
- Heavy customer service required
- Take time to set the business
- Not as flexible as Dropshipping
These are only pros & cons I can think of right now but if I have something, I’ll update this post.
Why Drop Servicing over Dropshipping
Many people are now leaning towards Drop servicing rather that Dropshipping & I think that’s good too.
Drop service is a pretty good business to be in but just like any other business, it’s very hard to be successful in.
Just think about it, there are people who have been doing graphic designing for many years & you now start your graphic design agency.
Don’t expect to get 100s of clients because the competition is always there & this time it will be with people who are already doing it for years.
But Drop servicing has a very large scope compared to Dropshipping where you have to just ride a trend wave & start over again every time.
If you are looking to build something long term then Drop servicing can be the one as you can learn the skill you are drop servicing too & maybe in future do it all inhouse.
Drop Servicing Conclusion
So that’s Drop servicing.
Don’t expect it to be easy, because it’s 10X hard then Dropshipping but it’s long term & after 1-2 years, getting clients gets easy.
Also if you get 2-3 Clients loyal to your services, then it’s a good start because you only need 2-3 clients to run the business profitably.
Let me know if you are starting a Drop Servicing business in the comments below & I’ll try to help you out as much as I can.
Have Questions? Comments? Leave them below & I’ll answer them.