What is Drop Servicing?
Drop servicing is an online term that refers to the process of reselling digital services online using freelancers.
You can resell digital services such as social media marketing, website development, video editing, and many more.
Another similar term to Drop Servicing is “digital service arbitrage”. You are the middleman between clients and freelancers.
The clients get help with digital tasks and the freelancers get help with making more income.
Benefits of Drop Servicing
Drop Servicing has better benefits than dropshipping. You do not have to worry about shipping delays, inventory sold out, unhappy customers, and too many refunds.
You get to make higher profit margins per sale and even make recurring income (Netflix subscription-style).
Long-term relationships and partnerships happen from having drop service offers and delivering great results. Meaning, you get paid for a long time by the same clients.
It is easier keeping current clients happy than finding new clients.
How Drop Servicing Works
The entire process is done online, you just find prospects then turn them into clients. After you get paid from the clients, you just send the information needed to the freelancers.
For example, you find a freelancer who makes apps for only $500. You then sell the app development offer to a client for $2,000. You make a profit margin difference of $1,500.
Once you gain a client’s trust, you can sell them other services like app management, marketing, and more.
Is Drop Servicing Profitable
Starting and growing a reselling digital service-based business is very profitable. You can make a minimum of 50% net profit per sale (preferably 100%+ per client).
You can sell high ticket digital services that start at $1,000 per package or plan. You only need 10 clients to make $10,000 a month for that example.
The beauty about drop servicing is you don’t need a high volume of people paying you for the services you are reselling. Just 5-10 new clients a month is very profitable!
Drop Servicing Examples
Many agencies have been outsourcing and drop servicing for years before the term even became known.
There are many examples of what agency or software-style websites look like online. Here is an example of an SAAS agency style business:
Is Drop Servicing Saturated
Saturation just means there is money to be made. You just have to niche down because the riches are really in the niches.
You could have started drop servicing over 10 years ago like me, start today, or even launch the business 10 years from now.
There are an endless amount of new clients for every niche like e-commerce, software, real estate, law, home services, gamers, and many more.
How much to start Drop Servicing
You do not need much money to get started. It is better to just invest in learning and self-education for drop servicing, sales, and marketing.
A website with hosting nowadays costs less than $100 a month. A domain name costs less than $25 a year. You can use free website templates or pay for premium templates.
A drop servicing website is great for branding, portfolio, and more information. However, the most important steps are lead generation, booking appointments, and closing clients.
Is Drop Servicing Legal
Yes! It is legal only if you are making sure the services the clients paid for are getting done for them. The freelancers handle the fulfillment and you are the point of contact for the clients.
All you have to do is make sure the clients are happy with the services fulfilled. It is only illegal if you get paid and do nothing at all for the clients.
What do I need for Drop Servicing
This is everything you need to start a drop servicing business:
- Digital Services
- Marketing Strategy
Drop Servicing is my favorite way to make money online and is very scalable. You do not need to do all the fulfillment yourself.
You just focus on generating leads and closing clients. Eventually, you will need to hire a virtual assistant, sales team, appointment setters, managers, and more!
Do you want to learn more from me and read the exact steps in order to start?
Download my Ultimate Bundle today!
By: Darius Gaynor
Your Drop Servicing Mentor
Wow! This is a really great and in-depth article about drop servicing! Thank you for this. Very detailed!
I totally agree about the saturation just meaning there’s money to be made.
Thank you for commenting!