How To Start A Drop Servicing Business and Make $5719/Month

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Drop servicing business

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Ever wondered how you could effortlessly tap into the ocean of digital products and services and generate income through utilizing other people’s skills and capabilities?

Picture this: a business model that requires minimal upfront investment, no inventory management, and the potential to earn big. Welcome to the exciting world of drop servicing, where ethically reselling top-notch digital services is the key to unlocking endless opportunities.

In today’s article, we are going to explore this groundbreaking venture together in detail, starting with the definitions and concept to creating the actual drop servicing website, and everything in between!

Interesting, huh? If starting a profitable online business for as low as $100 bucks a month something you’d love to learn, make sure to read this post all the way through and if you find it inspiring and useful, share it with your friends, please! (Virtual high fives and hugs to all my sharers out there!)

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Table of Contents

Drop Servicing Introduction and Definition

In the last 5 years, people have been crushing it with the dropshipping business model, and the truth is that eCommerce has been killing the traditional retail industry so badly!

Today, drop servicing is becoming the new trendiest business model for entrepreneurs and the number one dropshipping alternative in the digital world.

Thousands of websites are being created on a daily basis, therefore, people are in continuous need of services like web design, content writing, logo, marketing, and many other services.

With that being said, let’s get started by defining the business model, breaking down how it works, and explaining why exactly it’s a great drop shipping alternative.

Drop servicing is a business model in which you sell other people’s services online without the need to provide them by yourself, instead, you will have them performed by another party that isn’t your employee!

It’s really centered around becoming the connector or middleman between the buyer and the actual service provider, without ever declaring this to your clients.

Similar to dropshipping, but instead of selling physical goods, you would be flipping digital services.

drop servicing business

Online services are like anything else in life are controlled by demand and supply. Therefore, if you’re able to connect both individuals A and B, you would end up making so much money leaving all parties satisfied and happy!

In this business model, your job is to connect (A) those online freelancers who sell their services online, with (B) those who need a particular service online and are ready to buy!

drop servicing clients

Unlike starting a brick and mortar store, drop servicing is a lucrative business model that doesn’t require much to get started, and also has a huge potential financial gain.

If you continue reading, you will learn exactly how to start your own drop servicing website for as low as $100. Stick around!

Understanding how the drop servicing business actually works is crucial for your success, and can give you a fair advantage if you understand the process and how to put things together correctly.

Being said, let’s put the service supply chain into action to help you precisely understand how drop servicing works!

This is a real-life example to help you understand the relationship between the reseller (drop servicer), freelancer, and customer, and how they flawlessly work together.

1. After deciding your niche and the services you want to sell, you go to freelance marketplaces like Fiverr or look locally for trustworthy freelancers that you can resell their services.

2. Create a digital storefront where you can showcase your services online and attract serious buyers.

3. You list the service on your storefront and set your own profit margins by taking into consideration the price range of the competition.

4. When someone ends up purchasing your logo designing service for a total of $49,99, for instance, you capture their payments automatically with eCommerce providers like Shopify and receive their requirements and information.

5. You then pass their requirements and pay the freelancer the service fee of $9.99 and let him do the actual work.

6. The freelancer SHOULD commit to the deadline and deliver the work for your approval.

7. The designer will then finalize the order and have it ready for the reseller. Once reviewed and approved by you, you successfully deliver the order to the customer and let them enjoy their new logo, as if it was done by you!

8. Congrats, the connector (you) just landed $40 in profit, the service provider received a sale for his service, and the client finally got his dream logo design and is fully satisfied. It’s a win-win-win scenario and business relationship.

That’s the service supply chain in action. When done right, it’s a smooth process that results in minimal work for everyone involved.

Attention: Customers won’t be aware that you’re not the one who does the actual work. You don’t need to declare this to them, but you need to be picky with your freelancers because customers will blame you if any issues arise. Although freelancers will handle the service on your behalf, the order will be issued from your site and your brand name will appear on their invoice.

How Does A Drop Servicing Business Make Money?

Your profit as a drop servicer is the difference between what you charge your clients for and what your freelancer charges you for doing the actual work!

For example, if you offer social media management services for $500 a month that are sourced for $250 a month with an client acquisition cost of $50, you will end up with $200 in recurring monthly revenue.

What’s unique about Drop servicing is that you’re not trading your time for money! It’s really centered around being the middleman between the service provider (freelancer) and the actual buyer.

This means that you can charge whatever you want for your services (that you don’t personally do), and you can set your own profit margins too, of course, after taking the competition into consideration, but the point here is that you’re full of control of your prices.

However, the trick is to find freelancers that offer quality work at a relatively low rate so you can mark-up their rates and make a higher profit.

Drop servicing is a legal business and there’s nothing that makes it unlawful or against the law! However, you need to understand how it works and have well-defined terms and conditions to protect your clients.

You should be clear and transparent with what you offer and never promise something you cannot commit to. In other words, people should be aware of what to expect from doing business with you by simply reading your policies.

All in all, there’s nothing against the law about reselling someone else’s services and making money off the price difference. The fact is, drop servicing works just like any other business model: Buy low, sell high.

Drop Servicing Vs. Dropshipping

Cast your mind back to 2006; a new business model was emerging out of China, a method of product fulfillment that allowed entrepreneurs to start dipping their toes in an industry.

That usually required thousands of dollars worth of products purchased upfront, space to house all those items, and of course, the ability to send those products around the world.

The term was coined “Dropshipping“, and it has grown ever since creating a whole industry and mini-empire in its wake.

Fast forward to 2023 and a new ‘drop’ model has appeared, this time utilizing the gig economy to help business owners find new logos, SEO audits and website builds, without the seller ever needing to lift a finger. This new model is called Drop Servicing, given the name due to its similarities with Dropshipping.

A Real Comparison Between Dropshipping and Drop Servicing

Dropshipping is the act of selling third parties’ products without worrying about inventory, shipping, and delivery (the supplier will usually handle all of this). Drop servicing, on the other hand, has the same approach, but it’s the act of selling others’ services instead of selling physical products, and it’s also called drop surfing!

If you don’t have time to read the full pros and cons breakdown for both business models, the below drop servicing and dropshipping comparison table can be of great help to you:

Advantage/Disadvantage:Drop ServicingDrop Shipping
FlexibilitySuper flexibleRequires more time
ProfitabilityHighly profitableLimited profitability – Based on niche
MRRChances for monthly recurring revenueNo monthly recurring revenue
ShippingRequires no shippingSometimes it takes an eternity
OverheadLow overheadHigher overhead
ScalabilityMore scalable – Unlimited capacityA bit limited if compared to services
CompetitionLess competitionHigher competition
Order DeliveryFrom as low as 24 hoursBased on client’s and suppliers’ destination
Risk InvolvedNo risk involvedInvolves higher risks
Customer SupportStrict policies & email support are enoughSolid support is needed

So, if you’re not sure what to dropship or have tried dropshipping but failed, seeking an alternative is a smart move toward your financial freedom and dreams!

Drop servicing is much similar to the dropshipping business model, you’ll be selling digital services that require no packaging, storing, or shipping! In the grand scheme of things, it’s not that different than saying running a digital agency or a service business except for using freelancers instead of employees.

With that being said, here are some reasons why drop servicing outperforms dropshipping:

Dropshipping Pros

The dropshipping business has been killing the traditional retail industry hard in the recent couple of years.

Below are some pros and advantages of the dropshipping business model:

  • For sure, no need to stock any inventory
  • A dropshipping business can be all automated by leveraging some tools and software, which makes your life easier as a drop shipper
  • It can get super-profitable and fruitful

Dropshipper’s most significant advantage is that they don’t need to stock any inventory or buy any products in advance. Unlike the brick and mortar business, you don’t need to buy products that won’t sell! The thing that will cut off your overhead and expenses.

Dropshipping Cons

Although the dropshipping business model has solved serious issues for online sellers, dropshipping does also have some cons and disadvantages as well, like anything else in life!

some of these dropshipping cons are:

  • It may take customers an eternity to receive their orders
  • You will be competing with the big guys
  • The product’s quality can not be guaranteed
  • Refunds & returns can literally ruin your business and reputation
  • Profit margins are being killed

Shipping periods play a big role in entrepreneurs’ business success. When starting out as a drop shipper, most people tend to go with the traditional Aliexpress dropshipping.

Aliexpress is a great place for sourcing products and finding suppliers, but most suppliers ship from China. The thing that will make shipping a nightmare for both seller and customer. Shipping from China to the US, for instance, may take an eternity sometimes, yet prevent you from achieving customer satisfaction.

And obviously, people are more likely to cancel their order and ask for a refund, which means a lost potential client!

Additionally, you have no control over the quality of the products since it’s shipped from China for very cheap prices!

Don’t get me wrong; I’m not trying to say that China’s products are harmful! However, the price can indeed be an excellent factor for determining the quality of the product!

Above all, there’s relatively massive competition in the dropshipping industry nowadays, and you would be competing with big guys! With that in mind, to determine your prices and profit margins as a beginner, you’d need to stick to a specific pricing range formed by the competition.

Drop Servicing Pros

1. Less Overhead

Similar to dropshipping, the drop servicing business model is the act of reselling others' services instead of selling physical products, and it's also called Drop Surfing or Online Arbitrage.

The cool thing about the drop servicing model is that it requires very little investment to get started, even less than what dropshipping requires!

You don’t need to get fancy with overwhelming apps and features. All that you need is a service listed with a description and a checkout page.

Your real cost would be your monthly subscription to Shopify (or any other service you decide to use) and the actual cost of the service when you buy it from a freelancer.

And I’ve not mentioned the advertising budget because it’s obvious that you need to advertise for your website in order to acquire new clients and get more sales.

2. No Risk Involved

Unlike a brick-and-mortar business, where you need to buy or rent a place and fill it with products that you won’t sell.There’s no risk involved in a drop servicing business. You’re only paying in advance for a domain, website and some test orders.

3. More Flexibility

Similar to dropshipping, the drop servicing business model is the act of reselling others' services instead of selling physical products, and it's also called Drop Surfing or Online Arbitrage.

The drop servicing model is way more flexible than dropshipping. It even requires less time than dropshipping, because there’s no need to add or remove services continuously.

Unlike running a dropshipping clothes store with hundreds of size or color variants, you can list hundreds of thousands of services with no limitations.

By that time, you should be connecting with multiple professional freelancers so you can have more capacity and be able to handle more orders.

With drop servicing, you’re much in control when it comes to orders and cash. Also, there are some services that you can get for a relatively cheap price.

4. No Long Shipping Periods

Similar to dropshipping, the drop servicing business model is the act of reselling others' services instead of selling physical products, and it's also called Drop Surfing or Online Arbitrage.

Now this is a really big issue that most drop shippers suffer from.

Sometimes it takes an eternity to get the order shipped and delivered to the customer’s door! This mostly happens when shipping from China to the EU and the USA!

And this is another problem that drop servicing has solved.

Since you’re selling services, there’s no shipping involved. The thing that makes the process faster and smoother for all parties.

5. No Order Fulfillment

Similar to dropshipping, the drop servicing business model is the act of reselling others' services instead of selling physical products, and it's also called Drop Surfing or Online Arbitrage.

In the dropshipping business, each and every order should be fulfilled and transferred to the supplier so that they can fulfil, process, pack, ship, and finally deliver it to the end consumer!

With drop servicing, you’re more in control over things since the fulfillment process is way too seamless and is done manually.

Using this efficient business model, you will have the power to deliver your services in a matter of hours or a maximum of a day or two, depending on the complexity of your service.

For example, if you’re listing service of “eBook Creation” on your store, and someone ends up purchasing it, you will just receive an order that contains their name, email and payment from that particular buyer.

All that should be done from your side after then is to let the freelancer know about the new order so they can start working on it, and pay for it separately.

When the freelancer submits the work, it will be submitted to you, remember you’re the connector between them. You’ll then send the final work to the buyer as you’ve done it. People don’t know that you’re a middleman. They don’t know about your freelancer at all! So, in case anything happens, they know you, they will blame you!

6. Monthly Recurring Revenue (MRR)

Some services that require monthly management and constant efforts, like lead generation, social media management, and SEO, would allow you to make a monthly recurring revenue and have a predictable income each month.

No one says no to more business and revenue. So, users would need to keep paying you to keep growing and improving their businesses. You can even have a 3 or 6-month contract, it’s totally up to you!

7. No Returns & Refunds

drop servicing business

This is a big problem in dropshipping that can lead to high losses and a bad reputation.

When people order something from the internet, chances are that the order takes way too long to be delivered.

As a result, they may end up requesting a refund…

The same goes for the wrong product or variant. The customer may accidently receive a different color or size of the product that they ordered. Mistakes just happen! In that case, an order return would be the only solution for them!

However, returns and refunds can negatively affect your business, your reputation and your overall profit margins. In fact, Shopify will eventually increase the processing fees on you if your return and refund ratios are relatively high!

This is absolutely not the case with drop servicing whereby you’re not selling tangible goods and physical products based on its image and description!

drop servicing business

In drop servicing, unless the customer is 100% sure of the service they’re about to purchase, they simply won’t! So, as long as you illustrate and clear up everything on your sales page, there should be no problems at all.

Also, you should have clear and very straightforward privacy, terms, and refund policies to stay on the safe side! These are just any business’s essentials anyway.

8. Higher Customer Lifetime Value

If you’re able to deliver what you promise and bring clients the type of results they were looking for when they hired you in the first place, your customer lifetime value and retention rate would be very high!

Some services like SEO, for instance, require continuous efforts and unless clients are willing to commit to your monthly service, they would be wasting their money. So, with this kind of services, once you start acquiring clients, they are likely to purchase your service for months, or even years to come, and that will depend on the type of quality you deliver.

9. Set and Leave

drop servicing business

When you run a dropshipping store, you should keep an eye on the stocks, monitor the process of fulfilling orders, make sure to replace products that are out of stock, and just keep your store up-to-date. In fact, lack of inventory is just one of the many reasons that will put your PayPal account at risk of shutting down!

Now, when a business grows, this becomes a very time-consuming part, unless you want to hire a virtual assistant who can help you with that for a couple of hundred dollars a month, which will reduce your monthly potential revenue.

Therefore, if you’re looking for a set-and-leave solution, drop servicing is a better option for you. You only need to create an outstanding website (which I’ll show you how in a few) to showcase your services, and integrate it with a payment gateway that will allow you to capture payments from your clients.

And That’s it!

It can even be fully automated in the future by hiring a Virtual Assistant who can fulfill your orders directly with the freelancer and keep your business organized.

Pro Tip: Are you living in a country that bans PayPal? Check out my other step-by-step tutorial to learn how you can set up a PayPal in unsupported countries by forming a UK-based company.

Drop Servicing Cons

1. Some Services Have High Competition

Some services, like SEO (Search Engine Optimization), have a high competition, which means your cost per acquisition would be higher than other services. It all depends on your niche servicing market research and competition assessment.

2. You Need Enough Knowledge and Info About The Service

Although you can sell any type of service online, you need to understand how it works at least. Selling a particular service doesn’t require you to master it, but to understand the basics about it so you can answer any question you’d be asked by your customers.

You can turn this into a secret weapon to closing more deals and outperforming your competitors. You need to look as professional and legit as possible and let your clients feel that you know what you’re selling!

3. You Need to Test The Service Provider

You can’t succeed with drop servicing unless you adopt the right mentality of starting a real business, and be willing to invest a little cash to build something awesome ahead!

You don’t need a lot of overhead to get started. However, you should be prepared to take it a step further and spend some money on purchasing test orders from your picked freelancers. That’s important for two reasons; First, to measure the quality of their work, and second, to evaluate the level of communication as well.

4. Delivery Times and Deadlines Can Be an Issue

Meeting customers’ expectation is what should you be aiming for when running a drop servicing business. Higher customer satisfaction would lead to loyalty, and loyalty means recurring revenue, AKA high customer lifetime value.

Having one freelancer to do the work is a recipe for failure because freelancers are not actually your employees. They may be handling multiple projects at a time, and chances are they wouldn’t be able to meet the deadline of the job. Therefore, having a backup of multiple freelancers would increase your capacity of work and help you get this done faster.

How to Start a Drop Servicing Business

Starting your digital drop servicing agency comes into multiple stages. Here’s a complete breakdown of the exact step-by-step process of starting drop servicing business:

To Get Started With Drop Servicing, You’d Need to:

1. Brainstorm Drop Servicing Ideas
2. Select a Drop Servicing Niche
3. Find Trustworthy Freelancers
4. Build a professional website
5. Promote your business

Further information can be found inside our ultimate drop servicing blueprint.

I purposely separated this step from picking the actual drop servicing niche as in this early phase, you will just start by thinking about what you’re good at, what skills you have, and what skills you want to capitalize on or learn!

For me, nothing beats the power of a pen and a piece of paper when it comes to brainstorming ideas! By the time you finish writing down your thoughts on a paper, you’ll be surprised by the amount of drop servicing ideas that you will end up having.

You will then start filtering based on what you’re mostly knowledgeable about, what’s actually needed in the market, and what has the highest potential margins.

This step aims to allow you to select a service category or a sub-category, and in the next step, you would be picking a niche, sub-niche or micro-niche within that specific category you’ve chosen!

Have you ever heard the phrase “Riches are in the niches!” before? We can’t argue enough why you should be narrowing down your drop servicing business to a specific niche.

A niche is a laser-focused and targeted service/product that fulfills a particular need for a specific group of people!

The below demonstration helps you differentiate between a category, niche, sub-niche, and micro-niche.

an image demonstrates the difference between a category, sub-category, niche, sub-niche, and a micro-niche.

People don’t buy products and services… they buy solutions to their problems.

By selecting a niche market, you would be serving a specific group of people that have the same problem in common!

And here’s the thing; the more narrow you are, the better you would be able to identify who your target audience is and where they aggregate online.

With that being said, having answers to the below questions will help you pick a drop servicing niche quicker:

  • Are you knowledgeable about it? You can literally sell any service online, but it’s recommended to be knowledgeable about it! You don’t need to be an expert, but you should at least understand how it does work so you can answer any question you may be asked by clients!
  • Does it have a demand that you can supply? To receive orders from real humans, the service should be really needed and have a significant demand. Wherever there’s a problem, there’s a fix and there’s a need!
  • What is the level of its competition? Having a clear idea about the competition is crucial for your business. You can start by googling the service and see what’s already offered, check the freelance marketplaces and see what your competitors are offering, and leverage tools like Google Trends to learn more about the service’s popularity and demand!
  • What is the level of its competition? Having a clear idea about the competition is crucial for your business. You can start by googling the service and see what’s already offered, check the freelance marketplaces and see what your competitors are offering, and leverage tools like Google Trends to learn more about the service’s popularity and demand!
  • Is there room for a monthly subscription? This is the ultimate secret of the drop servicing business’s success. Services that require a long commitment (i.e. SEO, content writing, marketing, etc.) allow you to get paid on a monthly basis, recurringly! So, does the service pay you every single month? Or is it just something needed for once, like a logo design?
  • Does it have up-selling opportunities? Did you know that up-selling increases revenue by 10-30%? Up-selling is the act of offering your customers a higher ticket product or something related to what they have purchased! More about this is in the Dotcom Secrets book.

What Can You Drop Service?

You can literally drop service anything! You don’t need to be an expert in a particular service niche to be able to resell it. However, you should understand what it is all about and how it actually works.

drop services

Having endless opportunities doesn’t mean not setting your own limitations for what to list and sell. Selling is all about supply and demand. Therefore, you have to make sure that the services you’re listing are in demand.

If you search for a specific topics on Google Trends, it will give you interest over time. CV writing, for example, may not be the optimal service to resell in 2024, especially with all the AI tools and advancements that make producing content stupidly easy.

If there’s no interest in that particular service in the past 12 months then you’d probably struggle in promoting and selling the service to your clients.

CV writing google trends chart

This tool can at least be a good indicator of the trend of that service. Just stay away from services that have a down curve.

On the other hand, reselling services that makes sense to the current market trends and align with your clients’ interests could be a smarter move.

Tiktok ads google trends chart

The biggest trend for 2020, especially after the Corona Virus Pandemic, is starting an online business, eCommerce and dropshipping in particular. The searches for terms like “home business” or “online business” have been drastically increasing ever since!

In 2024, some of the biggest trends that we are seeing on the internet today are artificial intelligence (and it’s threatening some jobs too), AI website creation, marketing automation, Web 3.0. development, and many more.

In addition to that, services that are mostly worth flipping are the ones with recurring payments. It means that you acquire the client once, and they will keep paying you for months to go.

Services like a logo design, for example, are a one-time order. Someone who’s looking for a logo for his business won’t be looking for another logo in the next month, at least in most cases!

However, marketing, on the other hand, is a continuous service that you can offer for months or even years if your client is satisfied with the outcome.

That said, below are some of the drop services with monthly recurring payments opportunities:

  • SEO (Search Engine Optimization)
  • Digital Marketing
  • Email Marketing
  • Content writing
  • Virtual Assisting
  • Video Editing
  • Backlink Building
  • Guest Posting

And opportunities are just countless…

This step is a virtual team-building in which you will start seeking valuable partnerships with trustworthy freelancers and experts whom you’ll outsource the work from.

Truth is, there are various marketplaces, forums, and networks where you can find verified and professional freelancers who are open to doing business with you.

Platforms like Fiverr and Upwork act as a connector between service providers and business owners who need a particular service, so it could just be a great starting point..

drop servicing freelancers and clients

Freelancers are the interface of your business and you should be careful when picking them! They have the power to either lift your brand up or ruin your reputation entirely!

One of the biggest mistakes when starting a drop servicing business is relying on one single freelancer to accomplish the work on your behalf!

Freelancers are humans who have certain capacities to accomplish certain tasks during their days… You need to keep in mind that they are not yours! They may be handling multiple projects at a time, so sometimes, they won’t be able to commit to the deadline. It just happens!

Therefore, you should pick a set of freelancers and never rely on one single person for the following reasons:

  • Having a team of freelancers will increase your order capacity and allow you to handle multiple orders at a time
  • Each freelancer have their own expertise, skills and capabilities. So, having a group of people will just increase your coverage, skills, and knowledge
  • You would be able to cover different areas and services and better fulfill your customers’ needs
  • Above all, having a set of freelancers will back you up and allow you to deliver orders faster. This fair advantage itself keeps you ahead of the competition

By the time you finish researching freelance marketplaces and online job boards, you will end up having a huge list of individuals. What you need to do is to go through the list, filter, and narrow them down to up to 10 candidates.

Now, here’s my proven criteria for picking the right candidate for your drop servicing business:

  • Their response time – It’s important to be able to communicate with them whenever you need to! Communication is what matters most, at least for me, especially when working remotely
  • Their reviews – The cool thing about Fiverr (and many other freelance marketplaces) is that it allows you to see what other customers are saying abotu that freelancer. You would be aiming for candidates with excellent reviews
  • Their success rate – If they have a high success rate with previous jobs and projects, they are more likely to provide quality work for you too
  • Their quality of work – A freelancer with a lot of success stories and projects is more likely to have an inviting portfolio that can speak about them. Find the best of the best

Pro Tip: Want to take it a step further? Send test orders or assignments for your filtered freelancers to have a clear image of what your customers would really be getting!

If you’re serious enough about your drop servicing business and decided to take my above tip into consideration, make sure to record the data you get in a spreadsheet! Create multiple columns for communication, work quality, deadline success, etc… and give an overall score for each freelancer.

This will make it easier for you to pick the ultimate freelancer for your service-based business and the ones you should be giving priority when you start getting more orders.

Yes, it’s an upfront investment but it’s totally worth it for guaranteeing quality and communication efficiency! It will give you great insights about whom you should be working with, and this step can actually determine your own clients’ experience and satisfaction.

Some platforms where you can find freelancers for your drop servicing business:
  • Problogger
  • Fiverr
  • Freelancer
  • Upwork
  • FreeeUp
  • PeoplePerHour
  • Reddit
  • X/Twitter
  • LinkedIn

and many many more.

Thanks to the internet for all that it’s offering… Today, it’s definitely more convenient and easy to start a website or a digital storefront than it was 20 years ago.

For starting a drop servicing website you would need:

  1. A Unique domain name
  2. Appropriate brand identity building
  3. An email marketing toolkit and autoresponder
  4. A functional and responsive design

1. A domain: A domain name is the actual URL that’s going to represent your business, and it will be in this format: https://YourBusinessName.com.

This is nothing to worry about as it’s a one-year (or more) tiny investment! The fact is, web hosting companies like Bluehost offer a free domain name with yearly packages. So, if you end up using Bluehost as your web hosting service provider, you will get a free domain name and SSL certificate!

Estimated cost: The total investment if purchased separately from third-party domain registrars like Namecheap is less than $15/year! (Check out Namecheap from here.)

2. Brand Identity: Brand identity includes all the visible elements of your brand, such as color, design, and logo, which identify and distinguish your brand in consumers’ minds.

They say a picture is worth a thousand words, but a logo is worth an entire novel. Fine – that may be a slight exaggeration, but the principle holds true. The logo is a serious investment for your business, it’s a brand asset that has high potential value for your company, so it’s smart to hire a professional logo designer from the start.

If you want to get in direct touch with trustworthy and professional designers, Fiverr could just be the perfect way to go! Fiverr is a freelance marketplace that has every service you may need to outsource to build and run a viable online business!

Alternatively, you can go ahead and create your own designs and images by simply utilizing the free logo generators and AI tools like Canva, 99Designs, Looka, and more. Check out 57 AI tools across different categories, including graphic designing.

Estimated cost: The total investment of a professional logo design from Fiverr is something between $5-$30! (Claim your special discount on the first order on Fiverr)

3. Email Autoresponder: Did you know that the average ROI (return on investment) is $36 for each $1 you spend on email! Yup you read that right, and that’s according to a recent study by Litmus!

What really differentiates veteran marketers from those newbies is that they use email marketing toolkits that allow them to create email sequences to follow up and engage with their audience on auto-pilot.

According to Econsultancy, email marketing accounts for approximately 23% of online sales… Making it one of the most effective marketing channels at your disposal!

The ultimate beginner-friendly autoresponder that I’ve been using and recommending for my students and readers is GetResponse. GetResponse is a complete email marketing toolkit that allows you to create forms, surveys, landing pages, funnels, and several automation to effectively build your mailing list and engage with those leads.

Estimated cost: The total investment when using GetResponse is $15/month. Honestly, the basic plan is more than enough for you as a complete beginner, and you can always upgrade as your business grows! (Glaim your 30-day free trial on GetResponse!)

4. Storefront: An online storefront is the cornerstone foundation in your online business, and it’s obvious that every online business needs a website in order to get noticed.

Through your virtual storefront, you would be able to list and showcase your services, get clients to know you, add your policies, integrate your payment gateways, get orders, and capture payments directly from your clients.

Must-have elements for your drop servicing website:

  • Integrated with a branded domain – A branded domain is what will set you ahead of the competition and differentiate you from others.
  • Responsive & Visual Appealing Design: The website’s design and layout play a big role in gaining potential customers’ trust. It should be visually appealing for your customers, and also responsive for all types of devices, especially for mobiles!
  • Payment-Processor Integration: Are you looking forward to capturing payments online? Then a payment gateway is needed! A drop servicing storefront should have this integration to be able to collect money and receive actual orders.
  • Email Marketing Campaign: For every $1 you spend on email marketing, you can expect an average return of $42. This is a very important integration and a good website should have an email marketing campaign in place.
  • Social Media Integration: This smart era has made our phones a permanent fixture in our hands or pockets! Being said, your drop servicing website should have social media integrations to increase your brand’s presence and make it easy for your clients to share your services online.
  • Facebook Pixel & Google Analytics IntegrationsThe Facebook Pixel and Google Analytics are basically pieces of codes that you can place on your website to track people’s activity and behavior on your website. A good drop servicing platform will allow you to place those codes on the site, effortlessly.
  • SEO friendly – There’s a huge correlation between webpage speed and conversions. The conversion rate decreases by an average of 1.2% for every additional second it takes for your website to load.

The 2 Approaches Of Creating An Online Drop Servicing Website:

When it comes to establishing your online presence and building your drop servicing digital storefront, these are the two main approaches:

  • The professional sales funnels approach
  • The static website approach

Now, understanding this does not only determine your overhead but helps you do business more efficiently and effectively.

So, What’s The Difference Between a Funnel and a Website?

While a static website acts as a wall, a sales funnel can interact with your potential customers in a way to warm them up, and get them familiar with you and your product, so they can finally take the buying decision.

Image Source: Clickfunnels

A sales funnel is a series of steps, put together to help you achieve a particular goal, and lead people to a specific destination.

In short, a website could serve a totally different purpose. It could not be more than a portfolio or a digital business card… but it’s not an instrument for selling, at least effectively!

Do you know what a website looks similar to in real life?

It’s typically like going to a store in your local town and getting no one to greet you or fulfill your questions.

A funnel, on the other side, is designed in a way to educate people more about your product/service and walk them through the next step or destination that you’ve set for them to go to.

sales-funnels
Image Source: Clickfunnels

It’s a process that starts with awareness, followed by interest, then the decision, and finally action, which is the second they decide to pay you money to get your product or service.

In short, there’s no effective selling without high-converting funnels. Still, there’s no need to pull out your wallet quite yet! To prove that ClickFunnels is the best sales funnel builder on the planet, they’re offering you a 14-day free trial — just click here to try It out for 14 days with no obligation.

However, if you cannot commit to Clickfunnels’ monthly fee and want to start a drop servicing business with the second approach, which is using a website, you can either have a self-hosted website using an affordable shared hosting like Bluehost or leverage an eCommerce platform like Shopify that has everything you need to start selling online, everywhere.

The reason I recommend Bluehost is that I’ve been a customer since 2009 and it’s still the number 1 officially recommended shared-hosting by WordPress ever since. From as low as $3/month, you can expect very reliable and fast web hosting, with a great customer support team and an easy to use interface.

For Shopify, you should be prepared for a minimum of $29/month. It has 3 different paid plans, basic, Shopify, and advanced. The basic plan is more than enough and you can always upgrade as your business grows.

Having a self-hosted website, on the other hand, is a cheaper option for starting a drop servicing business, but it does require some technical and coding background.

How Much Does It Cost To Start a Drop Servicing Website?

The total investment of creating a drop servicing website varies from one platform to another. For Shopify, you should be prepared for at least $29/month, while it costs an average of $70/year on WordPress. However, sales funnels may seem to be the costliest option ($97/month), but they can save you a lot in the long run and they tend to convert better.

The cost of starting a drop servicing website using different technologies:
ApproachTechnologyCost – Starting From
eCommerce – Cloud-BasedShopify$29/month
WordPress – Self-HostedBluehost | WPX$3/month | $25/month
Sales Funnel BuilderClickFunnels | Kartra$97/month | $119/month

Numbers don’t lie and you can only improve what you measure. Knowing your initial costs, expenses, and numbers will give you a competitive advantage over your competitors, as you would be able to better evaluate what’s your dream customer worth to you and your business.

Knowing so will give you insights about the customer lifetime value, which is the total expected amount of revenue from the relationship with the customer, as well as each customers’ average order value.

It’s important to figure out how much you’re actually willing to pay in advertising to acquire a new customer, but before that, you would need to have a clear vision of your running costs and other expenses for more on-point business decisions…

The cost of your drop servicing website is determined by the technology you end up using. Here are most commonly utilized technologies for selling digitally, including services:

1. Cloud-Based eCommerce

Utilizing a cloud-based eCommerce platform when selling online makes your journey hassle free and helps you avoid any technical stuff or steep learning curve. One of the leading eCommerce builders is called Shopify, and it’s a drag-and-drop website builder that requires zero knowledge and prior experience, and has everything you need to start selling online.

Shopify drop servicing

The cost of starting a Shopify store is $29/month, and it can get lower with annual plans. Also, when running a Shopify store, you would need to pay for 3rd party apps that aim to enhance functionality and add more features to your store. The average expected cost for that is something around $30/month, and the price varies based on the apps you end up adding.

👉 Read the full Shopify drop servicing tutorial

👉 Claim your 14-day free trial on Shopify

2. WordPress Open Source

According to data from W3Techs, WordPress was used by 45.8% of all websites on the internet in 2023. This is an increase from 43.2% in 2022. That means that more than two out of every five websites use WordPress.

WordPress is basically a free open source content management system that allows you to create a self-hosted website, but to do that, you would need a 3rd party web hosting company like Bluehost or WPX.

Although having a self-hosted website is a cheaper option for starting a drop servicing business, but it’s fair to mention that it does require some technical and coding background.

The reason I recommend Bluehost is that I’ve been a customer since 2009 and it’s still the number 1 officially recommended shared-hosting by WordPress ever since. From as low as $3/month, you can expect very reliable and fast web hosting, with a great customer support team and an easy to use interface.

If you’re starting out, Bluehost’s basic plan would be more than enough for you. However, if you’re looking for more of a premium web hosting service provider, consider using WPX hosting. Its basic plan costs $25/month and allows you to host up to 5 websites.

👉 Read the full WordPress drop servicing tutorial

👉 Claim your 70% discount on Bluehost

👉 Claim your WPX hosting account

3. Sales Funnels

Everything right now, in business and our culture, is all about the experience. While websites can be boring and misleading, a funnel, on the other hand, is more useful for the customer and it creates experiences while websites do not. Rather than leaving people guessing about what’s the right fit for them, a funnel takes them exactly to where you want them to go!

If you choose to go with the sales funnels approach, Clickfunnels is the software that I would recommend! It’s an all-in-one marketing toolkit that enables entrepreneurs and businesses to grow their companies online and sell their products/services more effectively by leveraging the power of sales funnels.

Clickfunnels homepage

The man behind Clickfunnels is called Russell Brunson, a best-selling author and renowned online marketer who’s famous for a reason, has a training called One Funnel Away Challenge, which is a 30-day extensive training that teaches people the art of funnels.

Another reputable sales funnels builder that you can use for starting a drop servicing is called Kartra. Kartra is a marketing toolkit and a sales funnel builder that allows you to sell your products and services online more effectively and efficiently by leveraging sales funnels.

Similar to Clickfunnels, It provides done-for-you solutions including funnels, templates, emails and more, that aim to help you create high converting funnels that will actually sell.

Kartra dashboard

👉 Read the full Clickfunnels drop servicing tutorial

👉 Ready my full One Funnel Challenge review

👉 Claim your 14-day free trial on Clickfunnels

👉 Claim your 30-day free trial on Kartra

Although an online business requires less overhead and capital than a brick-and-mortar type of business, you still have to spend some time and money to raise a healthy and profitable online business that really has the potential to replace your job.

Well, you’ve created an outstanding online storefront that you’re proud to own and promote. Now what? After having your online storefront up and running, you need people to land on it so you can generate leads that which can be translated into revenue.

You won’t have any return on investment if you don’t have real people that are interested in what you offer, visit your landing page or website, and make orders! In fact, your website won’t just get noticeable unless you start running some promotions and advertisements.

If you can’t get a consistent stream of traffic or new people coming into your business, do you even have a real business? Traffic is the blood of your business. No matter what you’re doing or selling, you’d need actual humans, real people, to visit your store and interact with you! Rule of thumb: The more traffic you have, the more leads and sales you would be able to generate!

This can be tough for beginners, I know. But, here’s the deal… Acquire the skill or simply hire a professional to do the job for you!

Everything is just doable and achievable. No one was born with knowledge, and if someone has done it, you can do it too. No matter how hard you’ve tried and failed, there’s still room for acquiring a valuable skill that you can utilize to promote anything in life.

So, if you’re looking to learn how to leverage Facebook paid advertising to acquire more leads and sales, simply go learn it on eLearning platforms like Udemy and Teachable for as low as $11.99.

On the other hand, if you don’t have enough time to learn a new skill and are able to invest into something that can bring you a ROI, consider hiring professionals on freelance marketplaces like Fiverr.

Want to learn how can you bring truckloads of traffic to your website? Grab your FREE copy of the Traffic Secrets book.

Traffic Secrets Book By Russell Brunson - Russel Brunson reading his book Traffic Secrets

Here’s How To Find Drop Servicing Clients

In another blog post, I talked about this topic in particular and shared 7 proven ways for finding drop servicing clients. In that post, I’ve also talked about the audience temperature, which is an audience segmentation that shows how familiar your audience is with you and your products. The hotter your audience is, the more likely people will purchase from you.

The below table shows different methods for finding clients for your drop servicing along with their cost and lead temperature, but if you want more in-depth insights and a detailed breakdown of each method, I highly recommend checking out the other article.

MethodFree/PaidLead Temperature
1. Online ForumsFreeCold
2. Email OutreachFreeCold
3. LinkedInFreeCold
4. UpWorkFreeCold-Warm
5. BloggingOne-time setup feesCold-Warm
6. Google AdsPaidHot
7. Facebook AdsPaidHot

Is There Any Drop Servicing Course Around?

Yes, at the time of writing this blog post in 2024, there are many drop servicing courses on eLearning and online course platforms like Udemy and skillshare.

However, if you’re looking for more of a premium course, we at eComDimes have recently released the Drop Servicing 101 Blueprint which goes through the entire business model from A to Z. It starts with picking a niche and a name for your business and ends up with generating quality traffic to your business.

Here is a screenshot from the inside of the course dashboard:

eComDimes Drop Servicing Blueprint Dashboard

Enroll Today And Take Your Business To The Next Level!

This course will equip you with all the necessary starter tools that you need to get yourself positioned to start and grow your own service-based business!

Conclusion

Drop servicing is a great business model for beginners and experts alike! With only a few resources and a tiny investment, you could have a drop servicing website that you’re proud to own and promote!

In today’s article, we discussed everything you should be aware of when starting a successful drop servicing business. From niche ideation to generating traffic and everything in between, this article has covered it all!

If you have not done so yet:

Create free accounts and check out the tools, test their water and see if it works for you. There are tons of business opportunities online, you’ve just got to check what fits you best.

If you found this post inspiring and valuable, share it with your friends, please! (Virtual high fives and hugs to all my sharers out there!)

Cheers,
Odeh Ahwal

The Ultimate Money-Making eBook For Beginners!

From earning a few bucks to cover a bill expense to starting a 6-figure business and everything in between, you’ll learn it all!

Drop Servicing Frequently Asked Questions

What is the best drop servicing platform?

When it comes to starting an online drop servicing storefront, there are two main approaches; the static website approach or the sales funnels approach! For starting a drop servicing website, WordPress and Shopify tend to be the ultimate solutions. For funnels on the other hand, Clickfunnels is the all-in-one marketing toolkit for building sales funnels that convert!

How much does it cost to get started with drop servicing?

The cost of starting a drop servicing business really varies depending on the platform you end up using. For Shopify, you should be prepared for at least $29/month. For WordPress with Bluehost an average of $70/year and for Clickfunnels, $97/month!

Where do you find drop services?

Freelancing marketplaces is the optimal place for finding trustworthy freelancers and drop services. Those platforms act as a connector between services providers and business owners who need a particular service.

Do I need a drop servicing course?

Yes, you need a comprehensive drop servicing course to succeed with the model. Enrolling in a paid course will incentivize your brain to take action. A good drop servicing course will not just give you all the tools and resources needed to get started, but will also break down the process into sweet little actionable chunks that you can start implementing right away!

Do I need a business license to sell on Shopify?

It depends on your local regulations. As for now, Shopify itself does not require a business license to sell your services or drop service, but in the case of many states, there might be some limitations of operating without registering a business or using your own personal name for the business.

Is drop servicing still working in 2024-2025?

Yes, drop servicing still works incredibly well! The fact is, the eServices industry has been rapidly growing and according to Statista, its global sales are expected to reach a projected revenue of US$149.40bn in 2024. Thousands of websites are being created on a daily basis, and this only creates new opportunities for online resellers.

Is drop servicing easy?

Starting a drop servicing business is extremely simple and straightforward but people usually get stuck with marketing their businesses as it requires some skills. Running a digital drop servicing agency involves active work, yet it can be completely automated in the long run by hiring virtual assistants.

What are WordPress alternatives for a drop servicing business?

The best two alternatives for starting a drop servicing business are Shopify and Clickfunnels! While Shopify is the best eCommerce solution around, Clickfunnels is the best funnel builder toolkit that has a bunch of pre-built landing pages and funnels!

What can you drop service?

You are not limited to what you can drop service, you can literally resell any service online. However, you need to have basic knowledge about the service so you can look authoritative in your customers’ eyes and be able to close the deal!

Hand-Picked Articles For You

So behind every great blog is usually someone who runs it all. That would be me, Odeh Ahwal. I’ve created the eComDimes blog with a mission to help people provide well for their families by starting online businesses, share my experience, and just introduce you to different ways of making money online! At eComDimes, we help you turn your dimes into dollars!

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