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The Right Business Model for Beginners

What Is Inside?

Richard Hay is a serial entrepreneur who started his journey on digital marketing in 2010.

His experience has lead him to his success, leading 5 world-class companies and speaking on prestigious stages

One of his key success is on drop servicing business model and on this ebook, he give back to the community, sharing his knowledge, hoping more people can repeat his success.

From the Blog

How To Get Rich From Drop Servicing?

Dropshipping is nice, but drop servicing is better. Imagine cashing out daily from someone else sweat without dealing with bad-stock products? 

Drop servicing is not a new concept in the digital industry. It’s also known as service arbitrage. You charge a customer for X amount of money and deliver a service done by someone else at a lower cost. There is nothing wrong with reselling the services of others and making money from the price difference. I will show you how to create a sustainable and profitable drop service business in a later section. 

There are tons of digital workers out there and with the current global uncertainties, more people are shifting to remote jobs. If you go through reputable online marketplaces such as Fiverr, Upwork, and Konker, to name a few, drop service can be one of the easiest ways to make money. 

The trick to making money in this business is to do market research, introduce a unique service, and consistently provide high-quality work to your customers. 

Here are 3 reasons why drop service is a profitable business:

#1 – More people are working remotely. 

It is one of the most profitable business models you can use today and it is an excellent opportunity to grow your business. The world is going online faster than ever, and there is no better time to start building a life of financial freedom. There are people and companies that need your services, and you can be the person who provides them with those services profitably. Drop service is a great way to earn money online without spending too much time learning new skills. 

#2 – A relatively easy compared to drop shipping. 

Drop shipping is an online business where you sell physical products to your customers without holding stocks. Although it is easy to set up a drop shipping company, competition tends to be quite strong and profit margins can be inferior, especially in the early stages unless you buy in bulk. On the contrary, the profit you are getting in drop servicing is higher than what you can earn in a drop shipping business.

#3 – Drop servicing has less competition than drop shipping

In this business model, you don’t have to sell hundreds of products to make a good profit each month. Drop service business offers you the opportunity to earn more money as you sell higher-ticket services. It is a business model where you sell services that are not being physically delivered, such as outsourcing work to a freelancer or agency to complete the project, while you as the middle man, is only responsible for selling the service to the customer. 

To run a profitable drop ship home business, you have to find your niche in the market. There is no doubt that you will make more money than drop shipping if you sell high ticket prices compared to selling hundreds of dropshipping products in 30 days. You have better quality control in your business compared to the dropship with inferior products. 

All you need to do to start a drop service business is identify a service that you can sell for a premium, find someone willing to work for less, and then set up a website to advertise it. Many so-called coaches and gurus sell this idea and profit from their training tools and affiliate links, which offer various other services. 

Another example is to offer digital services, web design, copywriting, or press release for quick cash. Business owners love to get featured on news sites such as ABC, FOXNews, CNBC, and you can be the expert. You can offer a press release service for a cosmetic surgeon in your area, charge at least $200 per release, and then hire a reputable vendor from the marketplace for $79 to get the job done with a white label report. That’s an instant 60% profit without doing anything else than just clicking your mouse. Next, you can find another surgeon in a different city and repeat the process. 

Learn How to Start a Profitable Drop Servicing business with our FREE ebook.

Drop Servicing for Beginners

One of the best things you can do to start a drop service business is learning how to develop the right attitude that sets you up for success. Instead of spending months trying to figure out how to do it, take a course that explains step by step how to grow the same business model.

Drop servicing, also known as service arbitrage, is a business model that offers service instead of products to customers and finds a vendor to provide it at a lower cost. Unlike the dropshipping business, this business is relatively easier and offers a bigger profit margin. Similar to other business models; first, you need to develop a clear vision of what you are doing – select the services you are going to provide, find a vendor, and begin to promote your business.

Finding Niche

To find the best niche for drop services, look at the niche of services people are looking for either from local newspaper or authority websites in your niche such as forum, Reddit, Instagram, and Facebook groups. Another option to generate ideas is to check on Google Trends.

In the US alone, there’s a 100% increase in “remote jobs” search during the early pandemic time until February 2021.

Checking further down, “transcriber jobs” is currently on demand which brings an idea to find global talents with decent English and offer their service to companies looking for transcription service.

The list goes on to find niche, you can also do online research on marketplaces such as Craiglist, Fiverr, and Upwork to find type of jobs that are on demand. Keep in mind, you need to make sure that the task should be easy enough for you to manage with good profit margin. I advise to niche down offering 1 – 2 services and become the expert instead of being a generalist.

The list goes on to find a niche. You can also do your online research on marketplaces such as Craiglist, Fiverr, and Upwork to find the type of jobs that are on-demand. Remember, you need to make sure that the task should be easy enough to manage with a good profit margin. I advise you to niche down, offering 1 – 2 services and becoming the expert instead of a generalist.

Find The Best Service Providers

This is easier to said than done. During my early stages of building my drop servicing business, I struggle to find the right vendors for the long run. The bad ones pop up every day on my news feed, but the good ones are always the non-promotional ones and only work with a small number of clients. I mostly found freelancers on Fiverr is suitable for a simple task, but be sure to keep all transactions inside their platform. With Upwork, you can expect to work together for the long run, but the transaction fee is pretty steep and from my experience, working outside their platform is better once you have found the right guy or girl. Once you understand your market and your need, you can scale up your business by hiring a virtual employee. I had a good experience with and many marketers stated the same.

The main difference between hiring an expert and an employee is you pay higher for their expertise even though you might now know exactly what they are. On the contrary, you will need to be very clear with your direction when hiring an employee. You will need to hold their hands for the first few months at this early stage, but as your business grows, hire a project manager to manage other employees and make sure they get the job done on time.

Building Your Business

As a role of thumb, you charge higher than what you paid to your vendor. Even though the drop service business requires nearly zero cost aside from clicking your mouse, you need money to make more money. The key to success in this business is customer satisfaction and having a good relationship with your vendor. Pay them what they deserve (tips is helpful) and always update your customers on their order. In a drop service business, you cannot guarantee the exact turnaround time, as it depends on how busy your freelancer is, so be sure to spare extra time, especially on peak seasons such as Black Friday and Christmas.

The starting cost varies depending on the platform you use. Most online marketplaces charge at least 20% for freelancers, which means they will have to increase their service fee, and some marketplaces such as Upwork and Fiverr also charge recruiters, which is sucks, but as long as you make a profit, smile at it and move on. Another option is to hire a professional through their website but check on their reviews and credibility.

How to Find Clients?

The easiest way is to jump into the same marketplace or forum where you find your vendors, but the most reliable one is to build your website and promote it through free organic traffic or paid traffic, or a combination of both.

The best part of having your website is you have full control of everything. You can charge monthly or as a one-time payment. Whatever you choose, you will get a decent return, but not at the expense of your own time and effort.

Why You Need A Mentor?

The purpose of this drop-service guide is to teach you how it works, how to make money and how to start your business. In my course, I go into details on different niches selling hot right now, how to build your site even if you are a beginner, how to find reputable vendors, and how to promote your site the easy way.

Keep in mind that the most significant advantage of a drop-service business is that you don’t have to have any skills or experience no matter what niche you choose. The easier your drop service business needs to be, the easier it is to sell to customers, find freelancers and scale your business. If you want to start a business you support, the first thing you need is a service provider or service provider to serve your customers better.

Anyone can start a successful drop service business as long as they are willing to do the work required. Drop service can be particularly easy to start if you don’t need to know how to produce the services you sell.


Your Friend To Success,

Richard Hay