How To Get Started With Drop Servicing in 2021 | How to Create a Profitable Business Reselling White-Label Services | Drop shipping vs. Drop servicing
Drop servicing: The New Online Business Trend
During the recent years various online business models and trends has been undertaken which in turn has faced their downfall due to their competitive nature in the Ecom market while some are of them are still banking it huge and still in vogue up till now
We’ve heard of online businesses like
But first I’ll be talking about drop shipping as related to this topic.
 |
In simple sense Drop shipping is a scenario where a vendor buys a particular product maybe a bag at $30 from a third party store like amazon, eBay, Aliexpress, e.t.c then sells it his/her own store to a customer at quadruple the price say $120 keeping $90 as profit
Drop shipping has been huge in the Ecom industry and still pushing on based on recent stats.
 |
Drop servicing on the other hand is brand new, fresh and not as competitive as drop shipping, and can easily be started up with little or no capital or experience.
Drop servicing is a business model where you sell services that you don’t fulfill yourself, rather you outsource the work to a freelancer or an agency that completes a project while you’re only in charge of selling the service to a client.
That means it’s a form of outsourcing or “service arbitrage,” which is just a fancy term for reselling. You play the role of a middleman that markets and sells the service to clients, and the service provider completes the project behind the scenes.
If you’re not familiar with drop servicing, it’s basically the drop shipping model but for services instead of products. What’s important to note right off the bat is that this model isn’t anything new. In fact, it’s been around for many years.
Drop servicing model is best understood through some examples:
You bring your jacket to a dry-cleaning business, but they end up sending it to a cleaning factory rather than washing it in the store. That’s drop servicing.
You go to a local bakery expecting fresh baked goods, but they actually get their pastries from a factory rather than baking it in house. That’s drop servicing, too.
These real-world examples show that drop servicing can work with both tangible and intangible end results, but it’s most frequently discovered these days with online services like digital marketing or web design.
Chances are, you’ve actually bought products from a drop shipper before and you may have even bought from a drop service as well.
And that’s what’s tricky about it!
As a client, you may never know the difference between a service delivered directly by a service provider and one sold by a drop service business.
How does drop servicing work
The process of starting a drop service business is extremely simple. You need to put up a nice looking website selling the service you want people to pay for, and then you go out and find someone who will actually do the work.
In the modern era, the drop servicing business model often goes like this:
You design a website offering marketing services
Then you promote and advertise the service to get clients
Next, you forward the project details to a service provider to do the work
Finally, once complete, you deliver the work to the client
Drop servicing is all about selling a service at a high price and then finding someone to do the work at a lower cost, while you pocket the difference.
What can you drop service
The reason why drop servicing may seem so popular these days is that everyone wants to tout that you can drop service anything, and that’s just about true.
While most drop service businesses offer a digital marketing service of some sort, like web development, logo design, SEO, etc., you can drop service anything as long as you have the two necessary elements:
a person willing to do the work for X amount
a client willing to pay even more
What are the impediments of Drop Servicing?
The fundamental constraint of this business is your own mastery. While you can value the administrations however much that you need, you can't sell a wide range of administrations.
For instance, you can't offer a clinical record administration in the event that you don't have the foggiest idea what it is. Same thing with information section, lead age, and different administrations where you have no foundation.
Synopsis
Drop adjusting might be the following enormous thing. It is not difficult to actualize, and it is not difficult to acquire. The thing with drop overhauling is that no actual merchandise are included.
You won't lose cash on delivery expenses, and you won't have a ton of client grumblings for terrible items in light of the fact that each finished help will go through you.
Another limit is your degree of control. Not everything consultants can convey at the time you anticipate that them should, and you can't take care of business. The majority of these are simply seasonal workers. In the event that a consultant will require three days to compose an article, you need to add at any rate two days to that.
Why?
Since you need to get ready for some obscure crises, as if the consultant made a terrible showing and you need to request an update. Or on the other hand more terrible, on the off chance that you need to search for another specialist.
Once more, you ought not beginning this business on the off chance that you have not attempted the specialist co-op yourself. The customer doesn't realize that you are re-appropriating, and you can't rationalize on the off chance that you neglect to convey.
Would it be a good idea for me to take a course to do Drop Servicing?
Indeed, you should enroll in a class to study drop overhauling. The issue is that there are no courses for this as of this time. What you can do is to take an online business course for outsourcing, as the methodology and business style are the equivalent.
The lone distinction is that you won't sell actual items, so you needn't bother with a provider. Be that as it may, the ability you need the most is promoting, and utilizing web-based media for your potential benefit as you sell your administrations.
You will discover it truly hard to make this business work in the event that you don't have showcasing abilities. Regardless, for what reason would a customer request from you on the off chance that they can without much of a stretch go to Fiverr? It is all in the bundling. You can charge more on the off chance that you realize how to showcase your administrations.
Here’s how it works you find a high on demand service you want to resell you could find those services on freelance websites like fiverr, freelancer.com, PeoplePerHour, e.t.c
Do an indepth research on those services like how many searches per month they get on search engines like google,bing and yahoo countries where it is high on demand and all.
For instance you found a high ticket service on fiverr where is freelancing is charging $50 for making a video ad and product review for a customers products,You could resell that service to customers on your sales funnel site at say $150 for each video ads and product reviews you could add up sales for more profits
When the customer buys from you,you make an order on fiverr from the freelancer selling that service at $50 reselling it to the customer willing to pay $150 making a $100 on profit
Unlike Drop shipping where you create a store to feature your products in drop servicing you could build a sales funnel,a Facebook page or an Instagram page to advertise those services you will be reselling.
Here are some examples of services that you can sell:
- Web building
- Backlinking
- Guest posts
- Blog posts
- Social media management
- Graphic arts
- Ad copywriting
- Video creation or animation
- Video editing
The list is really endless. It is you who will put a limitation to what you can offer.
As always, you need to study what service is in demand. Since this is a new concept, you will not find resources that can show you data about this. In this case, your best option is to use Google Trends.
What are the limitations of Drop Servicing?The main limitation of this business is your own expertise. While you can price the services as much as you want, you cannot sell all sorts of services.
For example, you cannot offer a medical transcription service if you do not know what it is. Same thing with data entry, lead generation, and other services where you have no background.
Drop servicing may be the next big thing. It is easy to implement, and it is easy to earn. The thing with drop servicing is that no physical goods are involved.
You are not going to lose money on shipping costs, and you will not have a lot of customer complaints for bad products because each completed service will pass through you.
Another limitation is your level of control. Not all freelancers can deliver at the time you expect them to, and you cannot do anything about it. Most of these are just part-timers. If a freelancer will take three days to write an article, you need to add at least two days to that.
Why?
Because you have to prepare for some unknown emergencies, like if the freelancer did a bad job and you need to ask for a revision. Or worse, if you need to look for a new freelancer.
Again, you should not start this business if you have not tried the service provider yourself. The client does not know that you are outsourcing, and you cannot make excuses if you fail to deliver.
Should I take a course to do Drop Servicing? Yes, you should take a course in drop servicing! And learn how to market your services from big companies or clients without doing all the hard work by yourself.
Get the Best Drop servicing expert Course: click here <<
Comments
Post a Comment