Drop Service For Beginners: How To Get Started For Free

Are you looking for a business model which you can start with no investment upfront?

If yes, then drop servicing might be a great option for you.

Not only does this business model cost little to no money to start, but it also requires very little experience to get started.

Instead of spending time learning about different skills, you can literally find someone who is good at performing the tasks and you delegate the work that person.

Thus, drop service is very easy to start if you're someone who does not have some money to invest or some specialised skills to offer to the marketplace.

In this article, l will walk you through the fundamental aspects of drop servicing so that you can get a better understanding of this business model.

Not only that, but you'll be able to go out there and start your own drop service business using some of the ideas shared in this post.

So read till the end if you want to learn more about this business model.

What You'll Learn:

So without further ado, let me jump straight into more detail

What Is Drop Service?

In simple terms, drop service is a business model whereby you find clients who needs some specialised services and you negotiate with them so that you can get the contract to fulfil the job e.g. video editing, web design, graphic design etc.

Once you get the contract, you will then delegate the work to someone else who is able to do the work better at less cost.

Drop servicing is similar to drop shipping in the sense that you look for potential customers who needs something and you then find good suppliers who can deliver the products to the customers at a lower price hence allowing you to pocket the difference.

The only difference between drop servicing and drop shipping is that drop shipping mainly focuses on physical products whilst drop servicing focuses on intangible products i.e. service industry.

Drop servicing has been on the rise over the past few years since most people finds it very profitable since it is ‘easy’ to arbitrage services through leveraging various online platforms.

Thus, it is important to mention about this business model when we talk about various ways to make money online.

In the next section, lm going to give you a simple illustration of how this business model works so that you can get a better understanding about this business model.

How Drop Service Works?

Ideally, your job is to find clients who needs some specialised services and you persuade them to give you the work e.g. web design.

You then charge them a certain fee e.g. $100 for that service and most of these clients are willing to pay good amounts of money since they don't have any skills related to these specialised industries.

Instead of doing the work by yourself, you can then look for a freelancer on places like Fiverr who can do the job ‘better' at a ‘lower' price like $60.

Once you deduct the $60 from the gross $100 that you received from the client, you will be left with $40 in pure profits.

The crazy part is that you can earn more money without doing too much work whilst delegating the actual work to someone.

And the interesting part is that you can find cheap freelancers in countries like India, Philippines, Pakistan, etc who're really good at delivering great results and are willing to accept a low pay for the work.

Thus, you can earn big bucks by finding high paying clients in first world nations e.g. UK, US, Canada and you then delegate the work to some freelancers in third world nations who’re willing to do the work for less money.

The key is to ensure that the clients receives what they asked for since you're the face of the company.

Thus, your main job is to manage all aspects of the business so as to ensure that both your clients and freelancers are happy & satisfied.

With that being said, the next question that l always get is;

‘How can l get started with this business model without any investment?’

This question will be thoroughly answered in the next segment.

How To Start A Drop Service Business For Free?

The first step to get started with drop servicing is to do some market research regarding the kind of services which your potential clients are looking for.

Failure to do that might result in business failure since you might start a drop servicing business related to services which no one are looking for.

Once you find the ideal services which are ‘hot' on the market, you need to go to various freelancer sites like Fiverr, Upwork, etc so as to research about ‘how much these people charge for these services'.

You can even contact these freelancers in order to learn more about their pricing structure.

Once you have an idea of how these services cost, you can then come up with your own rates which you will charge your potential clients (taking into account your profit margins).

Once you decide on your niche and how much you are going to charge for your services, its now high time to start your drop servicing business.

The best way to get started with drop servicing is to create a simple website which has your company/personal details, contact details, pricing structure amongst other business information.

The website should not be too fancy but rather, it should be professional enough to attract your ideal clients.

The main reason why l prefer having a business website is that most clients are sceptical when it comes to doing online business with people whom they don't know.

There’s a lot of scammers these days who takes people's money and they disappear in thin air.

Thus, if you want to separate yourself from those people, you should build a business website since this proves that you're a legit business which people can trust with their hard earned monies.

And the beauty part is that you can start your own website with as little as $2.95/month when you choose something like GreenGeeks.

Thus, there's no excuse for not having a business website since this costs less than a cup of coffee.

Ok, so lets assume that you now have your website setup, everything is now in shape, what's next?

Its now high time to find clients for your business so that you can start earning some cash ASAP!

Most people gets stuck when it comes to getting clients since most people overcomplicate this process.

But lm here to tell you that getting clients should not be that hard as long as you have an internet access.

In the next few paragraphs, l will share with you some of the best and easiest ways to get clients to your business without too much hassle.

So head over to the next section if you want to learn more about this topic.

How To Get Clients For Your Drop Service Business?

There are so many strategies that can be used to get clients to your drop servicing business – so many!

But my favourite method is using Google Maps in order to find potential clients in your local area or even beyond your borders.

I cant stress enough about how useful this tool is, since it helps a lot in generating leads for your business - if you know how to use it.

Let's say that your business mainly targets restaurants, you can use Google Maps to find restaurants in your local area and you can even contact them via email or phone call since most of these companies puts their contact details on their Google Maps profile.

The key is to contact as many leads as possible in order to increase your chances of getting some real customers.

For every 10 companies which you approach, 2 of them might respond to your messages which is a whooping 2% conversion rate (pretty normal).

Thus, you have to contact as many companies as possible in order to get more customers.

If customers ask for your details, simply refer them to your business website which you created earlier.

This will increase your conversions by a significant margin since these companies will become more comfortable in doing business with you.

Another great platform that works pretty well is Crunchbase.

For those of you who're not familiar with this platform, it is basically a free directory where you can find some information about various companies in different parts of the world.

Not only that, but it also gives you their contact details which you can use to reach out to those companies so as to inquire about business issues.

Thus, you can also utilise this platform to do ‘cold calling' to these companies.

Try by all means to give a thorough description of your services so as to prove that you're a professional person.

And when you do this consistently, you will get more and more clients in the future.

However, if you have some extra bucks to spend, then why not invest into paid ads?

You can run paid ads on various platforms like Facebook, Instagram, Google, YouTube, etc so as to advertise your business to more people.

And the beauty part about paid ads is that you can optimise your campaigns based on various keywords and tags.

This allows your ads to been shown to people who have an interest in your industry hence allowing your ad to get in front of targeted leads.

Not only that, but ads helps your business to reach more people in less time since ads are highly scalable as your ad can reach millions of people across the globe (as long as you have the ad budget to spend).

Thus, paid ads can be a powerful tool to take your business to a whole new level if you're looking to scale up very fast.

Pro Tip

As you gain more and more clients, you can ask for some feedback from your clients so that they can rate your services on a scale of 1 to 10.

And guess what?

You can add those reviews on your website since these acts as testimonials that your business actually delivers some good services to its clients.

You can add more reviews with time once you start to get more clients to your business.

This helps to improve your conversion rates by a significant margin since reviews acts as social proof that your business is legit and trustworthy.

Another pro tip is that you should put some samples of your services on your website, so that your future prospects can have an idea of what you have to offer.

Even though you're not the one who's doing the actual work, you can ask for samples from your freelancers.

And most of these freelancers will agree to give you some samples since they know that you'll bring more projects to them hence increasing their revenues in the process.

Once you utilise these 2 simple hacks, you can take your business to the next level.

Now that you have a solid foundation about this business model, let me share with you some of the most profitable niches in drop servicing so that you can get an idea of what's trending on the market right now.

Best Drop Servicing Niches

1. Web Design & Development

Due to the ongoing pandemic, most brick and mortar stores are closed as a regulatory measure to avoid the spread of the virus.

For this reason, most businesses are shifting to online platforms since most business operations are now being done online.

And guess what?

All these businesses needs websites in order to connect with their customers online.

Thus, web design is probably one of the trending gigs right now since more and more businesses are going online on a daily basis.

When l talk about web design, l don't only mean about ordinary static websites.

But lm also referring to ecommerce stores – specifically Shopify stores.

Most boutiques are now running through these Shopify stores since they noticed that they're easier to run and manage than a normal brick and mortar store.

Thus, you can take advantage of this movement and you can start your drop service business based around this niche.

2. Social Media Marketing

There is no doubt that social media marketing is one of the trending topics right now.

This is so because most companies don't have some specialised knowledge related Facebook ads since most companies where used to television and newspaper ads.

With the changing technology, most of these companies are now turning their heads to Social Media Marketing Agencies (SMMA) who knows how to run paid ads on various social platforms.

Companies are willing to pay significant amounts for these services since they appreciate the importance of SMMAs to their business success.

Thus, you can approach these companies and sign some contracts which guides how you're going to work with them.

The beauty part is that you don't have to know how to run these paid ads since you can find someone on Fiverr who knows how to run profitable ads.

The key is to find someone who is experienced and has more positive reviews since they'll be spending the company's money to run these ads.

Thus, you should ensure that your ‘ghost worker' is really good at it or else, he/she might waste the company's money on unprofitable ad campaigns.

Bear in mind that SMMA are not only limited to running ads for clients.

You can also offer services related to funnels building, short marketing videos, advertising banners, etc thus you can essentially build a team comprised of experts who have skills related to all these various industries.

The sky is the limit!

3. Graphic Design

Another cool niche in drop servicing is graphic design since most companies are now appreciating the power of visual designs.

Do you know that there are companies out there who're willing to pay hundreds of dollars for a simple logo that can be outsourced on Fiverr for less that 20 bucks?

That's true!

Companies are more than willing to pay huge sums of money to get nice looking banners, logos, posters, flyers etc.

With the rise of HD YouTube thumbnails, you can also take advantage of this industry and you can make some good money since most YouTubers are now taking their thumbnails more seriously.

Thus, they’re willing to pay some good amounts of money to get their high quality thumbnails done by an ‘expert'.

And the beauty part is that there's thousands of graphic designers in India, Pakistan, Philippines, etc who're really good at this profession, and they're willing to do the work at a low price.

Thus, you can essentially build a great drop servicing business around this niche and you can earn some good money in this niche.

Is Drop Service Legal

Drop service is 100% legal since it does not harm or screw anyone.

No one’s money is stolen in this business model because there are some people who're willing to pay huge amounts of money to get specialised services for their business.

On another note, there are some people who're more than happy to do the work at a lower price.

Thus, its just a matter of utilising these market gaps to your own advantage since you wont be screwing anyone in the process.

Advantages Of Drop Service

• Requires little to no investment upfront

• Less complex to manage

• Less overheads since services don't involve shipping, inventory, packaging, etc.

• Beginner friendly

• Low barriers of entry

Disadvantages Of Drop Service

• Might be difficult to get clients especially in the initial stages

• Less passive in nature i.e. you have to actively look for clients on a regular basis

• Difficult to scale

• You might get in trouble when your freelancers fail to meet your client's expectations.

• High competition due to low barriers of entry

Conclusion

I hope that you've gained useful value regarding drop service business model.

At this point, lm sure that you're now ready to go out there and start your own drop service business using some of the techniques shared in this post.

The key is to do proper market research, so as to find the best opportunities in your industry.

Once you have a clear idea, you can then start a simple website for your business so as to look professional since clients likes to work with trustworthy individuals.

Also, try to find the best freelancers who’re really good at providing great services in your niche so that your clients will be satisfied by your services.

Once you master these things, you can become great at this business model.

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