Have you been hearing the word “Drop servicing” quite a lot of time this year? Want to know how to start one?
Starting an online business is easy but keeping up with it without quitting is really hard. I had started multiple online businesses but almost all of them had to be shut down. The reason ranges from low budget to lack of interest.
Drop Servicing is the new online business in town. I have started one myself. It looks quite simple and I believe it can get profitable over time.
So, Here in this post, I explain what drop servicing is and how you can start a profitable drop servicing business in this comprehensive course.
Without further delay, let’s get started!
What is Drop Servicing?
Drop Servicing is a kind of business model where you sell services. But, you directly do not provide them yourself rather you hire a freelancer to do it for you. Once he finishes it, you send them over to your client.
Now, the profit comes when you sell your service for much higher money to your client than you pay a freelancer.
For Eg: Let’s say you sell logo designs for $50. A customer buys your service and he inputs some information regarding the logo. A logo design freelancer on Fiverr costs around $10. You pay him and gives the information needed. Once finished, you deliver them to your client and you get a profit of $40.
Related Article – Drop Servicing Vs DropShipping? Which One’s Better?
How Much Does it Cost To Start This Business?
The cost of starting this business literally depends on the way you want to start. You can start this completely free or you could take it to the next level by building a website and giving it a professional touch.
Starting this business for free is great for beginners but the profit can be a little low and will take time to get your first order.
On the other hand, when you go the professional way. You will have to build a website which might cost you around $3.95/month. After that, to drive in traffic to your website, you will need to set up ads on Google which will cost you at least $10/day.
Once you start getting orders for your services, you could increase your advertising budget and scale up your business.
Unless you are a complete beginner, go for the second method because it gives you more profit and helps you scale up your business in no time.
What Services Can You “Dropship”?
You can Drop service almost anything you want. But, you should always look out for the competition as well as the number of people searching for them.
If there are a lot of people providing the same service. You shouldn’t probably drop service that one. It’s better to look for low competitive and highly searched services on Google.
Some good services to “Dropship” are:-
- Virtual Assistant
- Social Media Manager
- Logo Animation
- Animated GIFs
- User Testing
- Lead Generation
- Resume Writing
- Book trailers
- And Much More…
The above services do get a decent amount of searches per month and you can easily get your ad on google for lesser money as the competition is low.
You can use the Google Keyword Planner for keyword research and competition analysis.
Related Article – 12 Easy Fiverr Gigs Anyone can do to Make Money
How Can You Start a Drop Servicing Business?
As I said, there are 2 ways by which you can start this awesome business. The first one is completely free and you wouldn’t need to worry about money but it will take some time and the profit will surely be a lot less.
The second way is more profitable and you will get your first order in maybe 24 hours if you select a good service. However, It will cost you a little money. But, that’s all a part of starting a business.
The Free Way
- Selecting a Service
I hope you have already selected a service either from the list that I have provided above or one on your own. Either way, the service that you choose will directly affect the profitability of this business. So, take your time and choose wisely.
- Finding A Freelancer to do your Job
Once you choose, the next thing is to find a freelancer on other freelancing websites like Fiverr who does the service for lesser money than you sell. Some Fiverr alternatives are:-
The reason why we are using these websites is that there are freelancers on these websites who provide these services for a lot lesser money than Fiverr. So, that way you can buy service from here and sell it on Fiverr or Upwork.
One thing to note here is to always look for a highly reputed freelancer who has a good number of ratings and reviews. Read some of his reviews and see if he treats his customer in a good way.
This is to make sure that your business runs well without any hiccups in the middle.
- Registering as a Seller On Fiverr and Upwork
Register as a seller on Fiverr or Upwork. You can make a little bit more money if you register on Upwork but it is a bit hard to get approved as a freelancer. So, if you aren’t approved on Upwork, you could easily register on Fiverr.
When defining your service or gig, include everything that your freelancer provides and do not include anything more than that.
Fiverr usually provides 3 different packages for each gig. So, make sure you utilise it efficiently.
- Driving Traffic
This is the hardest part of all!
As a new freelancer on these platforms, you won’t be shown on the result page for a particular service. So, it will be hard to get your first few orders.
However, there are certain things on both Fiverr and Upwork that helps you get orders. On Fiverr, it’s called Buyer requests where a potential asks for a certain job to be done and freelancers can then contact them directly explaining their services to them. The same feature is also available on Upwork.
- Placing Your Order and Delivering it to your Client
Once you get an order, gather all the information from the client and then go to the other freelancer and place the same order.
After he/she finishes, send them over to your client.
And that’s it!
The Paid Way
The second involves more technical skills than the first one. Once you select a service, do the following:-
- Finding a Freelancer to do your Job
This may be same as I discussed above but it can also be Fiverr. This is because Fiverr is a pretty trustable marketplace and is more reliable than the others.
- Building Your Website
In order to build your website, a hosting and a domain is needed. You can get both of them for as cheap as $3.95/month on Bluehost.
I recommend Bluehost because it has proven to be fast, reliable and cheap.
WordPress comes preinstalled on Bluehost and that’s exactly what we need. A couple of plugins needs to be installed so that we can design and accept payments on our website. So, for that, we install Elementor, Paypal and WooCommerce.
If I start explaining Elementor and web designing, I might as well deviate from this topic. So here’s a video on how you can design your website without any coding skills.
Once you set up a website. You can start accepting payments. This is done using PayPal and WooCommerce. Once again, This article will go so long if I explain it, so here’s a blog post on how you can accept payments on WordPress.
Great! You are almost done here! The final thing to set up now is our traffic source
- Driving Traffic Using Google AdWords
We will use Google AdWords to drive in traffic to our website. We won’t be using Facebook or Instagram ads simply because no one will search on these social media platforms for these services.
So, AdWords basically places ads on the Google search engine. I recommend you spend at least $10 per day on ads and if you can go a little bit higher, It would be great!
Here’s a small video on how you can set up a basic ad campaign on Adwords.
- Receiving the Order and Delivering the Service.
After the ads start running, you will start getting in more traffic and possibly orders. When you get an order, get all the information you would need and then hire a freelancer to do the job at a cheaper rate.
Deliver the service to your client one he finishes.
And That’s all it takes!
Some Drawbacks and Advantages Of This Business Model
- Delivery time can change. Not all freelancers can deliver in time. Sometimes, due to high demand, the delivery can be late. To cut back on this, you could add at least 2 days to the freelancers delivery time.
- Customer satisfaction is a top priority here. Outsource your service to good, reputed freelancer and you can minimize this problem too.
- Drop servicing is pretty easy and do not need any skills.
- When compared with dropshipping, Drop servicing is a lot less risky because you won’t need to worry about returns, refund, and product legitness.
Drop servicing is one of the emerging new online business models in 2020. But, It’s not all fruits and cakes. They do have their own limitations.
However, it’s easy to start and scale it up. More people are probably going to carry on this trend and make lots of money online. So, I suppose you better start one yourself and be the one that stands out.
So, That’s all for now. Hope you loved this article. Please comment down below if you have any queries.