How To Start A Drop Servicing Business And Earn Money Online

by Jimmy O. Blogger

Drop Servicing Introduction

Welcome to this guide on drop servicing. In this guide, you will discover:

What drop servicing is
Where to find services i.e your suppliers
Potential problems with drop servicing

So, after this guide, you will have a great idea of what drop servicing is.

What Is Drop Servicing

Drop servicing is a business model that is very similar to dropshipping. As the name suggests, instead of dropshipping physical products, it is done with services.

This means that you sell services that somebody else is offering, for a higher price and when you make a sale, you go to your supplier and purchase the service for a cheaper price.

The difference between what you charge, and buy is your profit margin. Often, if done correctly, this profit margin can be up to 500%.

As the drop servicing business owner is not actually fulfilling the service himself, it makes the business model extremely beginner friendly.

Where to Find Your Services

As you can probably guess, the service is everything in this business model.

If you were to start a drop servicing business, you would have to find a service that is:

Reliable
Cheap
Suited for this business model

To find these we can head over to freelance marketplaces (see list of freelance marketplaces here)

However, when choosing the service, we need to be very careful. That is why we need to pay close attention to the reviews, so that we know that the service is reliable.

It’s also important that we do some close market research, so that we know what prices we can charge while knowing the price of the freelancer.

Any service where we can deliver the requests of our client to the freelancer and vice versa, is suited for this business model.

Potential Problems with Drop Servicing

So, what are the potential problems with drop servicing?

The only real problem is that you are liable for your customers, not the freelancer. If the freelancer would deliver late or deliver unsatisfactory work, that is your responsibility.

So, how can we avoid these potential problems?

The first way is looking at the reviews, as we mentioned earlier. Secondly, you want to make sure that you charge a minimum of three times as much as the freelancer, meaning that if there is any trouble, you can always buy the service somewhere else.

This will minimize our chances of something going wrong.

How to Start Drop Servicing

If you would like to start drop servicing, I recommend reading fivestarfunnel’s drop servicing guide.

In this guide, you will learn exactly: