What Is Drop Servicing & How To Start It? [Complete Guide 2022]

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what is drop servicing

Have you been dreaming about running a highly profitable location-independent business without having to create your product or service?

If so, drop servicing can make your dreams come true.

In this article we are going to talk about what is drop servicing, how does it work, and how you can start this amazing business on a budget.

We are going to cover everything from start to finish, including, service research, setting up a website, hiring a freelancer, as well as the best strategies for marketing and sales.

What Is Drop Servicing:

Drop servicing, also known as white label servicing or service arbitrage, is a business model that connects the buyer with the service provider.

Your role in drop servicing is to stand as a middle man between the buyer and service provider to fulfill the buyer’s needs. Your main job is to find clients that are interested in certain services, and charge them higher than you would pay to the service provider.

In this way, you will get to keep the differences between the prices (profits), and that’s what this great business is all about.

You buy for low and sell for high.

drop servicing business model

The client comes to your website, buys the service, gives you the requirements, and you process the order to the service provider.

The so-called service provider is typically a freelancer, which you will be working with directly, in order to provide quality work to your client.

With drop servicing, you will not have to worry about creating and delivering your own services, as it only involves two stages of a traditional business model – marketing, and selling.

If you feel that you are not so good at executing professional tasks, but you believe that you can be a good marketer or salesman, this business can be a great way to earn a substantial income.

Is Drop Servicing New?

While some people say that drop servicing is new, the original business model has been around for ages.

Think about marketing agencies, which outsource certain tasks to skilled professionals in order to fulfill clients’ requirements – that’s drop servicing too.

The only difference is that the drop servicing business involves outsourcing the tasks remotely, whereas the traditional marketing agencies often have their teams working in-house.

Drop servicing business can be also relevant to the business, which operates outside the digital world.

Think about the construction company hiring independent contractors to do electricity, plumbing, interior design, and other services, and then taking their cuts of payments made between the home buyer and contractors.

To a great extent, drop servicing is just a new rebranded term for a business model, which has been around for a quite long time.

However, it does not mean it is not profitable.

With a growing e-service industry worth nearly 20 billion dollars, and all the marketing and sales tools that we have today, this business can be very profitable if done right.

Drop Servicing PROS & CONS:

drop servicing pros cons

When it comes to the advantages of drop servicing, there are numerous benefits and reasons why you should start this business.

At the same time, the drop servicing isn’t perfect and it has some distinctive negatives too.

Let’s have a look at what is good and not so good about this business:

😊PROS:

✔️ Low Entry Requirements: Compared to the traditional business, which requires hiring permanent employees, renting space, and stacking up the inventory, drop servicing eliminates all of that. While it costs something to start drop servicing, you can start this business with as little as 100$. There’s no need to make large investments up front, and the majority of expenses can be paid when you start making money. Moreover, you don’t need to have any particular skills to drop service, but just a laptop and an internet connection.

 

✔️High-Profit Margins: With drop servicing, you can successfully sell services at 2-4 times higher prices than you would pay to the service provider – that leaves you plenty of space for the profit margins and advertising expenses. Since you are selling not generalized, but personalized services, you can charge clients more for meeting their specific requirements. Moreover, you can successfully upsell other related services in conjunction with your main services. For example, if you are selling Youtube thumbnail design services, you may want to offer YouTube video description services too.

 

✔️Recurring Income: You can choose to deliver the service which will potentially bring the customer back to you and that will result in recurring income. Providing services like copywriting, SEO, social media marketing, and others that require ongoing management are great for gaining long-term returning clients.

 

✔️Multi-Sales Channels: The best place to sell your services is on your own website, but you are not limited to it.  Besides that, you can also list your services on popular freelancing marketplaces, such as Fiverr, Upwork, Freelancer, Guru, FlexJobs, and others. These platforms already get daily visitor traffic, and it costs nothing to market your services there.

😔CONS:

Quality Control: The main disadvantage of this business is the lack of quality control. Since you are not providing the service by yourself, the quality of service entirely depends on the freelancer. The freelancer may not be as good as you expect, or he may not deliver on time. To avoid any possible disputes with your client, it’s recommended to give him a slightly longer deadline than you would give to a freelancer, in this way you will have some time to sort out all misunderstandings.

 

❌ Proactive Approach:  In drop servicing, you will be dealing with two fronts at the same time – customer and service provider. That will require you to have not only loads of energy, but also time management, and communication skills. If you feel that these skills are not your strength, then you may have difficulties in this business.

What Can You Drop Service?

The great thing about drop servicing is that it gives you wide opportunities of selling options to choose from.

Whatever service that can be outsourced remotely, and for which there’s enough demand – can be used for drop servicing.

With many arising startups and expanding companies, there is a significantly growing demand  for a wide range of digital services, including:

  • Advertising & PR
  • Animation
  • Business Development
  • Computer & IT
  • Copywriting
  • Data Entry
  • Graphic Design
  • Planning
  • Research
  • Social Media 
  • Transcription
  • Video Editing
  • Virtual Assistance
  • Web Development
  • Web Design 
  • & many more…

As for drop servicing, it’s best to focus on providing services that require ongoing maintenance, meaning that the client will return to you more often than once.

For example, not many businesses will need ongoing logo creations for their visual identity or bug fixes for their website. But, many may need ongoing social media accounts or e-commerce store administration.

Your ultimate goal in the drop servicing business is to deliver quality work and gain loyal customers that come back to you whenever they need something.

Focusing on getting as many clients as possible will lead you to poor quality of work delivered, and a lot of time spent managing clients individually.

By having fewer, but active clients, you will be able to solely focus on the quality of production as well as enjoy a stable and recurring stream of income.

So it’s best to choose to deliver services, which will require your client to come back.

Drop Servicing vs Drop Shipping – The Difference Explained:

Drop servicing and drop shipping are two similar yet different business models.

While drop servicing is about selling online services, dropshipping involves selling physical goods without stocking the inventory.

With drop servicing, you would act as a middle man between the client and service provider, whereas with drop shipping, you’d work between client and product supplier. 

While for drop servicing you will need to have a website with a sales page of services, dropshipping requires having an eCommerce store, where you would list your supplier’s products.

These two businesses do not require you to create your own product or service, and you will only have to focus on marketing and sales of someone else’s product or service.

drop servicing vs drop shipping

Also, both types of businesses are capable of generating 7-figure income, and both can be operated remotely.

Drop servicing and drop shipping share a lot in common, but there are also a few distinctions that make one better than the other.

How DROP SERVICING is Better than Drop Shipping?

One of the reasons why drop servicing is better than drop shipping is that there’s way less competition for drop servicing.

As dropshipping boomed and became a very popular business in recent years, it became harder (yet still possible) to find profitable markets to fulfill.

Another reason is quality control.

Drop servicing gives you much better quality control as the service is delivered to you before it gets delivered to the buyer.

Whereas with drop shipping, the product is delivered straight to the buyer, and you don’t get a chance to make sure that everything is okay with the product.

Also, you don’t have control of the shipping process with drop shipping.

Both faulty products and shipping issues can result in a bad customer experience, and that can affect your reviews and sales.

Lastly, because drop servicing can be tailored to specific customer needs, the profit margins can be higher with this method.

Meanwhile, the goods sold via drop shipping has to follow the general market prices, and there’s not too much room for big profit margins.

How DROP SHIPPING Is Better Than Drop Servicing?

Probably the only advantage drop shipping has over drop servicing, is that it doesn’t require much communication with the customer or supplier for the product to be delivered.

The customer may have a few questions about the product before he orders it, but that’s going to be it.

Whereas, with drop servicing, you will have to proactively communicate not only with the client but also with the service provider to satisfy all client’s requirements.

This may be a challenge for some people, especially for those who don’t enjoy providing customer service.

How To Start Drop Servicing Business?

Starting a drop servicing business involves several steps, such as choosing the right niche,  creating a website, finding a freelancer, and marketing your services.

While there are not many financial investments in this business, it will require you to put in some hours of work.

In case, you would like to save time and take a shortcut, there are some great services that provide the entire done-for-you drop servicing business.

These services are provided by the Pro Verified and highly rated drop servicing expert on Fiverr.

drop servicing fiverr

Click here to find out more about this service

Otherwise, if you are willing to dedicate enough time, you can also create everything by yourself.

So without further ado, let’s get into the process of starting a drop servicing business.

1. Choosing A Niche:

Every online business starts with the right niche. At this stage, you need to take your time to carefully choose your service field. This is the most important stage that will have a big impact on your success.

It’s because, you may have the most fantastic service to deliver, but if it’s going to be too competitive, or if there’s not going to be enough demand, you will fail.

The ultimate rule of thumb is to go for a service that you already have knowledge or expertise in.

If you don’t have any particular expertise – that’s okay too. Just choose a service that would be interesting for you to learn and work with for the long term.

When choosing the niche, your goal is to find something that is not only interesting but also has little competition and is high in demand.

Talking about competitiveness, you don’t want to start with general services, like graphic design, or copywriting, as these niches are too broad, and are simply too saturated.

Moreover, as a newbie, you will not be able to effectively provide all general services at once, and you will struggle to deal with numerous freelancers at the time.

Instead, go for a specific niche of services, such as podcast transcription, fashion illustration, real estate video scripts, radio ads production, or something else, which is highly targeted and not too competitive.

Analyzing Niche Market and Competition:

A good way to analyze niche markets is by going to the most popular freelance website called Fiverr and having a look at all service sub-categories offered on the marketplace.

Then write down the ones that do not bring a lot of results, but are high in a number of reviews. This will indicate that the niche is not oversaturated and there is a volume of regular buyers.

Although we are not willing to compete on freelancing websites, they can be good general indicators of markets that need to be fulfilled.

For example, the “Social Media Marketing” niche would be way too competitive, as the search on Fiverr returns too many results:

drop servicing market research

Meanwhile, the “NFT Animation” niche brings us much better results. The number of services available is lower, and there are quite a lot of customer reviews:

drop servicing niche research

To find a niche that is not oversaturated, it is best to stick with services that return less than 5.000 results.

This strategy is just a general way to look at how each service market is performing on the world’s biggest service marketplace.

But, the real market research strategy depends on your chosen marketing strategy.

For example, if you are planning to advertise your services with Facebook ads, then you should do market research on Facebook, or if you are planning to promote services on search engines, then you obviously need to do an analysis on Google.

Whichever marketing channel you will choose, it’s always advised that you keep your presence on Google, as it is the world’s largest search engine and your potential customers are using it for sure.

And that brings us to another step – keyword analysis.

Analyzing Keywords:

Once you have a list of popular low competition services it’s time to do keyword analysis. A keyword analysis is very important if you are planning to promote your service on the most powerful search engine – Google.

Think about what your client is going to do first to find the service he needs – he’s is going to Google it, and you better be there to meet him.

The easiest way to start doing keyword analysis is by running a Google search on your service keyword.

Have a look at the first two pages, and check if there are any real competitors who ranking organically.

If you cannot find many service competitors in the first pages of Google according to your search phrase, then it might indicate that your service could be easy to promote organically.

Also, if the search does not return any Google advertisements, then it could potentially mean that there’s not much competition in Google Ads.

If you can find some competition on the first pages of results, that’s also good. The competition often means there’s a demand in service, and as long as there’s not too much competition,  you can always step into the game.

Getting a closer look:

Apart from competition analysis, we also need to make sure that our service is regularly searchable, and this can only be done accurately with the help of 3rd party tools. One of the best tools for this purpose is a Keywords Everywhere extension.

This premium yet supper affordable tool can help you get important marketing data, such as monthly search volume, cost per click, trend data, and other useful information.

drop servicing keyword research

As we can see the term “NFT animation” has a high average monthly search volume, potentially low cost per click (CPC), little competition, and a growing monthly trend (Oops, we might have just shared a golden niche for drop servicing).

To find services with sufficient demand, focus on keywords that have search volume of at least 100 a month.

Whether the cost per click for paid Google ads is good, depends on your end profits, and that’s something that you will have to figure out on the go, but the lower CPC is – the better.

While there can be many ways how you can do market research for drop servicing, looking at Fiverr and Google can give your great overall insight into the global markets and competition.

2. Creating a Drop Servicing Website:

Like any professional business, drop servicing needs a website, which will act as a buffer between your client and the service provider.

There you will professionally present your services as well as provide all reasons why your client should order from you.

The good news is, creating and hosting a website does not have to cost a lot. Moreover, you don’t need to create a complex website with plenty of pages, and a website with just 3 pages can be enough.

Those pages will be – a landing page, checkout page, and order page.

The most important page of your website will be the landing page – a place where your customer lands and takes the decision to buy your service.

On the landing page, the drop servicing business should include elements, like:

  • Persuasive sales copy
  • In-depth service description
  • Opt-in form
  • Case studies
  • Testimonials
  • Call-to-action buttons

It’s understandable that as a beginner you will not have any case studies or testimonials to present on your website, and that’s okay.

Just publish them once you get more experience in working with your clients as these will be very important elements for your sales and conversions.

If your service is based on arts, you may also consider showcasing the portfolio of your services too.

drop servicing landing page

Now for the website creation, you have two options. You can either build it in an affordable yet a bit technical way, or you can pay higher, and easily build it with an all-in-one platform.

We are talking about building your website with WordPress, or with Kartra, and the ultimate differences between these two options are pricing and convenience.

Creating a Website With WordPress:

Whatever the purpose of your website is, you will need two things – domain name and hosting.

The domain name is essentially the name of your website  (for example – www.yourwebsite.com), and the hosting will ensure that your site is accessible online.

You will pay for these services on either a monthly or yearly basis.

Getting Domain & Hosting:

Depending on the domain name, you can expect to pay for a domain from around  $9 to $20 per year, and one of the best places to buy domains is NameCheap.

Once you purchase a domain, it’s time to get your hosting. A good hosting provider ensures high security, fast loading speed, and a great user experience on the website.  For that, we definitely recommend Siteground hosting, which offers hosting packages for only $3.99 a month!

Siteground is a fast, secured, and super affordable hosting provider, and you can also purchase a domain name on Siteground if you wish so.

The domain name and hosting can be your only costs, as the rest of the website can be built for free.

Installing WordPress:

Whichever hosting provider you will choose to go for, from its dashboard you will be also able to install a WordPress – open source content management system, which powers 43% of websites on the internet.

The software is completely free to install and use, it is perfect for beginners and does not require any advanced coding skills.

WordPress is fundamentally a blogging platform, but with the help of many themes and plugins, you can build any type of website, including a drop servicing site.

Installing Theme & Plugins:

WordPress by itself is not capable to produce an astonishing drop service website, and we will need to install a theme and plugins. The theme will control the visual aspects of your website, and plugins will add the functionality.

So the first thing that you should do on your WordPress dashboard is to install a theme. There are thousands of free themes available on WordPress, and one of the great themes perfectly suitable for selling services is the Ocean WP theme.

After you install and activate the theme, it’s time to add 3 key plugins that will transform your plain website into a fully functional and great-looking drop servicing site.

Here are 3 plugins that you will need:

  • Elementor: For easily building and designing mobile-responsive web pages with drag and drop features.
  • WooCommerce: For creating service packages, managing payments, as well as for creating checkout, and other pages.
  • Custom Form Builder: For creating forms to collect all necessary information from the client about the project.

While these plugins have premium versions, you can definitely take advantage of their free features, and built a complete drop servicing website for free.

Here’s a detailed video tutorial on how to do it all:

Creating a Website With Kartra:

Another popular way to create a drop servicing website is with an all-in-one website builder called Kartra.

This method is more expensive than building your site with WordPress, however, it is significantly easier as you have everything you need in one place.

The powerful built-in Kartra features will help you create everything from start to finish, including product pages, checkout pages, and many more.

kartra

It also allows you to create multi-page sales funnels, as well as automated email marketing campaigns.

This option is best for those who are looking for ultimate convenience and flexibility when building a professional drop servicing store.

Here’s what else you will get when building your website with Kartra:

  • Custom Domain & Hosting
  • Drag & Drop Page Builder
  • Pre-designed Templates
  • Custom & Lead Generation Forms
  • Video Hosting
  • Email Marketing System
  • Affiliate Marketing System
  • and many more…

Talking about email and affiliate marketing systems, they come with all Kartra plans.

Email marketing integration allows you to build a subscriber list and send automated emails, and the affiliate marketing system enables you to recruit affiliates who will promote your services for a commission.

Both of these features can be very powerful for marketing your services, and they come integrated with Kartra.

You can also have these systems integrated into your WordPress site, but that will cost you extra to run, and there will be some work to be done with integrations.

Another thing that you will get with Kartra and wouldn’t get with WordPress is dedicated support.

While building your drop servicing store the chances are that you will encounter some difficulties, and the 24/7 Kartra support will be there for you to solve any issues.

The pricing for Kartra starts from $77 to $99 a month, and here’s a detailed video explaining how you can create a drop servicing store with this platform:

Hiring A Service Provider:

Now since we know the service we want to deliver and have the website built, it’s time for finding someone who could do the work. 

The best service provider for drop servicing in most cases will be an independent freelancer. By hiring a freelancer, you will get the service delivered from the first hands, so the profit margins can be higher.

Some people would also suggest relying on agencies as service providers, but this may not be a good option. 

While hiring agencies may be more reliable and could provide higher quality work compared to individual freelancers, you are essentially adding another middleman into the process, and that may drastically cut down your profits. 

So for the best returns on investment, it’s better that you look for individual reliable freelancers, that you could work with for the long term.

When looking for a freelancer, you want to pay attention to the following criteria: 

Experience: You want to hire someone with proven experience in delivering the services. Make sure that a freelancer has been around for some time, and it has a good number of positive reviews. Some freelancing marketplaces, like Fiverr, manually approve high-quality service providers and classify them as Pro Sellers. Services from such freelancers will cost more than regular, but you can rest assured that the quality is on your side.

 

Communication: Make sure that the freelancer is able to fluently speak in your language so the communication is always clear and smooth. Another important aspect is the time zone. Try to choose a freelancer from a country with a time zone similar to yours. Choosing a service provider from a completely different time zone may result in poor communication and longer response times.

 

Flexibility: Look for freelancers who are able to offer flexible service provision. You want to find a person who could work on various deadline periods, as well as offer some revisions, and corrections. Also, look for a professional who could provide various types of services, in case your client asks for something similar to what he already ordered. 

Where To Find A Freelancer?

fiverr drop servicing

The best place to find a freelancer is a freelance marketplace, and the most popular freelance marketplaces are:

There you will be able to either search for freelancers and directly buy their services, or request a service and wait for freelancers to apply.

Posting a service request may be a better option because at the end of the day you will have a list of people who are willing to work for you according to your specific requirements

By doing that, you will have the ultimate control to choose someone who meets your requirements most and offers the best price for the service.

Whichever way you choose to hire a freelancer, make sure that his experience, communication, and flexibility are on point.

Always, reach out to him before you order any service and make sure that he is a person that you could work with for the long term. 

When reaching out, state that you are looking for someone who can complete ongoing projects, and ask if he is planning to increase his prices in the future, because if he does, that could be a problem for your business.

Also, make sure to spend some $$$ for testing the services. You don’t want to sell a service to your client without knowing how it actually is, and the best way to find out is to actually buy the service.

Once you find a reliable freelancer and you get ongoing job requests from your clients, then you can try to set up the contract and permanently hire a service provider outside the freelancing platform.

How To Get Clients For Drop Servicing?

how to get clients for drop servicing

Whether you will get enough clients or not, massively depends on your marketing strategy and marketing efforts.  You can have the best service to offer in the world, but if you are not going to put enough work into marketing, you will get no clients.

While there can be plenty of marketing strategies, there’s no best proven-to-work marketing blueprint, and you will have to figure out what works best for your specific service.

Meanwhile, let’s discuss 3 top marketing strategies that work best for the majority of drop servicing businesses:

Cold Email Outreach: 

Cold email outreach is a process when you contact someone via email who doesn’t know about your business. In the email letter, you professionally present your services and explain how they will benefit your client. 

It may not be the most effective marketing strategy, but it’s great for starting out, and it is 100% free. 

While you won’t probably get many clients with this method, you can still get a few. If you manage to get two to five high-paying and returning leads, this strategy might be just enough for you.

Social media channels, like YouTube, or LinkedIn can be great sources for getting your potential client’s email details. It’s because many of the users there make their email information visible to others. 

You can also try direct messaging on other social media platforms like Facebook, Instagram, Pinterest, etc, but it won’t look as professional as messaging on email, and it will be harder to obtain the leads in this way.

If you are targeting businesses rather than individuals, the best way to find their contact details is by looking at their websites. Many business websites online have a contact form, which you can use to submit your service proposal. 

Blogging: 

According to the stats, 77% of internet users read blogs, and that accounts for approximately 409 million blog readers per month. This indicates that your drop servicing business can be definitely discovered via blogging.

Blogging is a free yet very powerful marketing strategy that could potentially bring you many drop-servicing clients on autopilot.

You can start doing this by adding a blog section to your drop servicing website and begin writing informative and helpful articles related to the topic of your service. 

If you write and optimize the articles well, they will eventually start ranking on Google, and that will lead to a free and automated stream of visitors, and clients.

In case you don’t like writing, you can start blogging on YouTube by creating videos, where you speak about your service. 

YouTube can be an even better blogging channel for drop servicing, as your potential client will get to know your personality and that will build a better connection with trust.

Both Google and YouTube are search engines, meaning that you only have to publish content once, for people to find it numerous times.

The traffic from these sources can be very targeted, as you publish content based on the specific keywords that the user is searching for.

Whichever method you will choose, you have to understand that blogging is a long-term game and the results won’t come overnight. It can take you months or even years for your blogging efforts to pay off, but at the end of the day, it is definitely worth it.

Paid Advertising:

paid ads drop servicing

Paid advertising can be a very effective method to quickly generate clients for your service, but for that, you will need to have a good knowledge of how paid advertising works, and obviously a budget to invest in.

Without knowing how to appropriately run ads, you may be wasting your money and get no clients at all. So before you put your money on the table, it’s best if you master free marketing strategies first.

There are plenty of paid advertising strategies, but Google (PPC) and Facebook Ads work best for service-based businesses. 

While both platforms have a lot of differences in performance, there’s one key difference to remember – Facebook shows ads to users based on their interests, and Google displays ads based on the keyword they type in.

For the Facebook Ads to work, you will typically need to build a marketing funnel where you warm up the potential client with a series of emails, before he finally takes action and buys your service.

It’s because the person who sees your ad while scrolling through his Facebook feed, will probably have no intention of buying any services right away, so you will have to take time to convince him. 

That’s why it’s better to direct a visitor from Facebook Ad to the email opt-in page with a freebie offered for an exchange to his email address, rather than directing him straight to the offer.

Whereas with Google Ads you can run them straight to your sales page, as the user searching for your service on Google typically has a much bigger intent to make a purchase.

When it comes to paid advertising you are not limited to Facebook or Google, and you can also effectively perform other types of paid advertising, such as:

  • Instagram Ads
  • LinkedIn Ads
  • Pinterest Ads
  • Buying Ad Space
  • Influencer Marketing
  • & more…

All of these methods have many nuances that require the in-depth analysis regarding your specific service and targeted audience. So take time to carefully study these methods before you invest any money into paid advertising campaigns. 

Best Tips For Effectively Selling Your Services:

drop servicing sales

Now since we have a marketing strategy in place, we have to make sure that we do everything to maximize our chances of landing clients.

For that, we have listed 5 essential tips that you should follow to maximize the sales of your services:

1. Create a powerful sales page

As we discussed earlier, a sales page or landing page is a super important element of your sales funnel. It is the place where the client decides whether or not he should order your services.

 

An effective sales page should include a series of important elements, such as clear and catchy headers, persuasive sales copy, in-depth service description, testimonials, reviews, and call-to-action buttons.

The sales copy should follow the proven AIDA marketing framework, which stands for Attention-Interest-Desire-Action.

It should also include your value proposition that clearly explains why the clients should choose you over your competitors.

2. Set a reasonable price for your services

While some “experts” say that you can charge clients 4 times more than you would pay for the service provider, it’s not always true.

 

When setting the price for your services, you have to do market research, and check how your competitors are pricing their services.

 

As a beginner, you definitely don’t want to charge clients more than the other established drop servicing businesses, or digital marketing agencies charge.

 

In fact, you want to offer a better price, which will force the client to choose you over the competitors.

Once you manage to land a few clients, get some testimonials, and build a reputation, then you can increase prices for your services.

3. Offer rushed delivery service

When it comes to online projects, the deadline is often a very important factor for a client.

The majority of clients will be happy with a standard delivery time, but some of them will need the service to be delivered quicker.

 

There comes a great opportunity to make more money, and charge clients extra for a higher turnaround time. But before you implement this strategy, make sure that your service provider is capable to deliver that.

4. Offer different service packages

Giving some service options for your client to choose from is a good way of squeezing even more money out of his pocket.

Instead of offering only one service package, offer several packages, which increase the value, and decrease the pricing of the initial service.

For example, if you are offering writing services, your service packages may look like this:

  • BASIC: 500 words article for $40
  • STANDARD: 1000 words article for $50
  • PREMIUM:  2000 words article for $60

Structure the value and pricing of your package in a way, which will make your client spend more money to get more value.

5. Offer upsells

According to the reports, upselling increases revenue by 10-30% on average, and you should definitely use this strategy in your drop servicing business.

 

Upsells are the additional services that your client may want to buy along with the main services. Those add-on services can be introduced on the checkout page, where the client is just about to make a purchase.

 

Now what kind of upsells you should offer, depends on your main service.

 

For example, if you are selling resume writing services, you can offer cover letter writing services too. Or, if you are selling video editing services, you can also offer an upgrade for audio editing.

Of course, before you offer any kind of upsell, make sure you have a service provider who is willing to complete that.

Final Words:

Drop servicing is a fantastic business model that doesn’t require you to create a product or service. All you have to do is to connect the buyer with the service provider and pocket the difference in prices.

For this business to work you will need 4 things – a good service niche, a professional website, a freelancer, and a marketing strategy.

If you feel that there’s too much work for you, you can hire an expert service, which will build the entire drop servicing business for you.

Once you have everything right and manage to land a couple of clients, you may have a substantial recurrent income flowing into your account for many years.