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 onlinejobs.ph 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