The future of online businesses has been heralded to be one that has a lot of possibilities and profitability and starting drop servicing business isn’t an exception.
It is no news that online businesses have been growing geometrically and every single day a lot of persons are discovering ways they can make money online from the comfort of their homes or any location of their choice.
Among the many kinds of businesses you can try online, Drop servicing and drop shipping are two closely related but different models.
In the wake of the outbreak of Covid-19, the revelation of how people can be locked out from in-store purchases and any form of buying and selling physically has given the growth of online businesses a significant boost.
Persons who relied on physical retail stores alone for their income generation suffered great losses during the Covid-19 lockdown period.
The survival of most businesses during the pandemic was hinged on their online infrastructure with many businesses suffering closure and total insolvency.
Statistics in September 2020 shows that about 60 percent of retail stores and related businesses suffered closure due to Coronavirus. Also, the National Bureau of Economic Research (NBER) conducted a study that projected almost 100,000 businesses had to close down amidst the raging pandemic.
All of this accounts for why online businesses are the rave of the moment. And it is even more interesting because a large percentage of businesses that survived the pandemic attributed their survival to their online structure.
The major focus of this piece is on the online business model called Drop servicing. It is often misinterpreted to be the same thing as dropshipping but as their names are different so are their structures.
Although Drop servicing and drop shipping are similar in terms of their online structure, they possess very distinct differences and when carefully analyzed they won’t be misplaced for each other.
In this article, you will find out the differences between Drop servicing and dropshipping, how to start a profitable Drop servicing business, and much more. To jumpstart and profit in your drop servicing business, consider enrolling in my complete guide to Drop services business in Nigeria that made me N980,000 just by searching on Google.
Table of Contents
- 1 What is Drop Servicing?
- 2 How Does Drop Serving Business Work?
- 3 Best Drop Servicing Niches 2021
- 4 How To Create a Free Drop Servicing Website
- 5 Why You Should Choose Drop Servicing Over Dropshipping
- 6 Top 5 Drop servicing Website Examples
What is Drop Servicing?
Drop Servicing is simply outsourcing client’s work to other professionals and earning a profit doing so.
As a drop servicer, you position yourself as the service provider and when a client gives you a job, you simply look for professionals who can handle the job.
So in essence what you are doing is selling services that you do not provide. Interestingly, you do not need to have the slightest idea about the service whatsoever.
I have used this method to cash out over a million Naira in 2020 during the pandemic and it’s been working for people and still works to date. You don’t need skill, huge startup capital or office space to get started.
Let’s see the differences that exist between these two online business models.
What Is The Difference Between Drop Servicing and Dropshipping?
Drop servicing refers to an online business model in which you sell out services. The services that you sell are not carried out by you for it to be called drop servicing.
For instance, someone wants a graphics design and you have a friend who can come up with a very good graphic design.
You secure the contract and give it to your friend for a price lesser than what the owner of the job is paying you. This trick works every single time and has always worked. A lot of companies you see today rely on this method to make money online.
Most companies you see online that brand themselves to be having many staffs are actually into drop servicing business but you won’t know.
You just have to find someone who can offer a service for less than the person demanding it is paying while you keep the difference between the amounts to yourself.
Services that can be outsourced include social media management, article writing, web design, proofreading, Digital Marketing, SEO, project management, and a whole bunch of others.
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Dropshipping, on the other hand, is closely related but different because while in drop servicing you sell services to make a profit, in dropshipping you are selling products that will practically be shipped to the buyers.
In essence, both dropshipping and drop servicing are the same being that they are both online business models where you sell things you do not remotely produce.
They are different in that you sell products in the drop shipping online models while you sell services in the drop servicing model.
For dropshipping, you create an eCommerce store and when people order for the products you promote, the supplier gets the product across them while you keep whatever profit you made from the product. For more details, read how to start a dropshipping business.
However, drop servicing demands that you as the retailer get the service from the client, give it to the freelancer who is going to do the job and when the freelancer is done with the job, they give it back to you and you deliver it to the client.
So, the chain moves back and forth from the client to you and the freelancer. With that, let’s look at exactly how do drop servicing works and some of the reasons why you should choose it if you are looking for a business to start and make money online.
How Does Drop Serving Business Work?
Drop servicing is a very profitable business. What makes it even more interesting is that you do not need to have any technical or advanced knowledge of the service you want to render. It is relatively easy to implement compared to other online business models.
No need for experience, inventory, tech skills, and what have you. All you need is clients and freelancers to do the job for you.
The first thing to establish as you set out on your drop servicing journey is to choose a service to render. Your choice of service must be informed by factors such as profitability, demand, and sustainability.
Consider how profitable, in-demand, and sustainable service is before choosing to drop service in that regard.
Best Drop Servicing Niches 2021
Here is a list of best drop servicing niches for drop servicing for 2020
I recommend the following drop servicing niches for you to try out as they are currently in very high demand and people are willing to through in tons of dollars to get them:
- Digital Marketing
- SEO Optimization and Management
- Project Management
- Social Media Management
- Article Writing
- Design Works
- Game Development
- Web Design
- Virtual Assistance
- ChatBot Creation
- Video and Animation Creation
- Graphics Design
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How To Create a Free Drop Servicing Website
After choosing the best drop serving niche, the next step is to create a drop servicing website where clients can learn more about your offerings.
A drop servicing website will serve as your office, the place where clients come to meet you. The website will be built based on the service you intend to provide.
That means, if you have chosen to drop service SEO optimization and management, then your website will be built as a platform for outsourcing SEO service providers and experts.
Get a Domain and Hosting
Or you can save yourself the stress by having us create the website for you. We can help you create a well-optimized, user-friendly drop servicing website.
Alternatively, if you are starting on a budget and you do not have enough money to get yourself a website, you can open an account with Fiverr and when you get a deal you outsource them to professionals on platforms like SEOClerks, PixelClerks, WordClerks, CodeClerks, ListingDock e.t.c. I explained this more in my training.
These platforms charge lower prices than Fiverr so they are perfect spots to outsource professionals from.
Nevertheless, having your website puts you in total control and effortlessly market your services and control your contacts.
You determine your pricing and if your SEO is done properly you can reach potential customers who go to search engines looking for services same services.
Next, you create a payment gateway. There is quite a handful of payment gateway and methods online business owners employ but PayPal stands out among them. PayPal provides a fast and very secure way to make and receive payments online.
It operates as a worldwide online system for making payments that support any form of money transfers from any part of the world. You can learn how to create a PayPal account that sends and receive money in Nigeria or any PayPal restricted country or skip and buy my guide here.
PayPal For Drop Servicing
Being one of the most secured payment gateways in the world and trusted by millions around the globe, you need to have a PayPal account that can send and receive money for your drop servicing website.
When your customers place an order on your website for the services you are rendering, they pay you through your PayPal account.
Also, most of the professionals you would be outsourcing from Fiverr, UpWork e.t.c accepts payments through PayPal.
Therefore, you need a PayPal account both for receiving payments from clients and for paying the freelancers you outsource.
Our course on How To Create a PayPal account that sends and receives money will help you create a PayPal account for your drop servicing.
You can also hire our services for the creation of your PayPal account. And depending on your target audience, you might also use local payment gateways like Paystack or Flutterwaves for Africa.
Get an Invoice Generator
You can use Wave owned free invoice generator or invoice-generator.com. There are a lot of other free invoice generators out there but ideally, you should use a paid one from Fiverr call And.co or use Paystack invoice generator if it’s a local Nigerian client.
PayPal can also be used to email invoices especially if you are dealing with a foreign client.
Why You Should Choose Drop Servicing Over Dropshipping
Still not convinced that drop servicing is the business model you should adopt for your online business or add to your existing? Or are you still contemplating choosing dropshipping instead of drop servicing?
This section will readjust your stance and make you see reasons why you should choose drop servicing.
Pros of Drop Servicing
- No Skill-set Required
Drop servicing is easy and straightforward. It does not require you to know about the service you are rendering. You just need to know your way around getting clients and outsourcing the job to reputable professionals and experts.
The cost of starting your drop servicing website is fairly cheap. And if you are going for the alternative of just opening a Fiverr seller account, you would not be spending at all.
- No-Risk Involved
With drop servicing, you do not have to worry about the client’s dissatisfaction, refunds, or returns so long you outsource the job you receive to a credible freelancer.
Cons of Drop Servicing
- Inconsistent Delivery Time
Delivery time can change from freelancer to freelancer. Some freelancers can deliver their works faster than others. To be on the safe side as you engage in the practice of drop servicing, set the delivery time to at least 3 days to make up for slow freelancers.
- Customer Satisfaction
This is why you must outsource the client’s work to persons who can deliver promptly and with excellence. Go for freelancers who are reputed and have a lot of good ratings and recommendations.
Overall, drop servicing shines out as a better model than dropshipping. Even though drop shipping does not require you to create an inventory for products and there are so many ways to automate your business, the disadvantages of trying drop shipping are overwhelming.
There is no guarantee of the products being of great quality as you do not get to see them physically or handle them before they get to your customers.
A large number of the products available for dropshipping are from China and it is almost impossible to determine the quality of the product.
Customers may be unsatisfied with the product and may want to send back the product, demanding a refund. This is one of the downsides of dropshipping.
The delivery time of the products available for dropshipping takes a lot of time.
AliExpress can take up to 1 month to deliver goods to certain places. Your customers will not find this feature convenient.
With drop servicing, you do not need to worry about experience, returns, and refunds.
If you choose a high-ticket service, you can earn 7 figures with drop servicing and this course will show you how to do so.
Top 5 Drop servicing Website Examples
Just to inspire you, here are some of the known drop servicing websites just for you to get inspired and motivated.
Guyramsay.com is owned by a digital marketer called Guy Ramsay. It is a site where you can outsource the services of a digital marketer.
He estimated earnings of the site is around $9,000/month.
Having been on the blogging scene for some time, you must have heard of or read from ProBlogger.
It is owned by Darren Rowse. Just recently, he added the “Jobs” feature which allows him to get and outsource writers to carry out projects.
The site rakes in an estimated $150,000 monthly.
Founded by Yvonne Reilly, yvonnereilly.com is a drop servicing website where she produces copywriting, editing, ghostwriting, and digital marketing services.
Sabidanna Digital Services
Owned by Sabi D’anna is a web copywriter and inbound marketer. She helps entrepreneurs and small businesses to grow.
Sabi earns an estimated $6,000 per month.
The site TaskRabbit is a go-to drop servicing website to outsource your domestic house chores to.
Founded by Leah Busque in 2008, TaskRabbit is designed to help users find same-day laborers who can carry out services such as cleaning, moving, delivery e.t.c
The site is estimated to be generating about $90,000 monthly.
99designs is another drop servicing website example based in Melbourne, Australia.
It is a freelance platform where persons looking for graphics designs can find good graphic designers.
Founded in 2008 by Matt Mickiewicz and Mark Harbottle, 99designs is estimated to generate more than $500,000 per month.
In this post, you’ve learned how to start a drop servicing business in Nigeria or any country. While all attempts were made to make this information as accurate as possible, I have prepared a more advanced and precise training video where I show you practically how I was able to make a million Naira during the Lockdown by drop servicing and how you too can copy my same strategies.
Now is your turn. What do you think? Is Drop servicing really a business for you?