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Is Drop Servicing A Good Or Bad Idea? (With 11 Helpful Tips)


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It requires some thought about the type of business you want to start and grow. So, is drop servicing a good or bad idea for you to start with?

This is what I’m going to help you figure out today!

Before we just dive in, for those who are not familiar with this new type of business, let’s just quickly explain what drop servicing is, and what are the pros and cons of this brand new business model.

If you find this post useful and inspiring, don’t forget to share it with your friends to help out as many people as possible quit their sucky jobs 🙂

What Is Drop Servicing?

Drop servicing is an online business in which you sell others’ services without needing to provide them yourself.

It’s like running an agency but instead of having employees, you hire third-party freelancers to do the work on your behalf.

what is drop servicing

But, how how does the drop servicing business model actually work?

  • You create a storefront and showcase the services you want to sell.
  • Customers come by and purchase a service from you.
  • You receive their info and requirements and pass them to the freelancer.
  • The freelancer will do the actual work, and once done submit it back to you on time.
  • You will deliver the order to the client under your brand’s name.

That was the service supply chain of the drop servicing business model into action. It sounds simple and easy, right?

It is a simple, yet an effective way of making money online today!

However, you should know what you’re doing, pick your services and freelancers wisely, and go with the right platform for building your online storefront.

I’ve created these helpful resources to help you succeed with this business sooner than others:

To help you make fewer choices, I highly recommend you grab your 14-day trial on Clickfunnels and start importing perfectly pre-built funnels that actually convert!

Click here to grab your Clickfunnels 14-day free trial!

Clickfunnels already has done-for-you sales funnels in all niches and industries! You just need to import, edit, and publish!

If you know nothing about sales funnels and not sure where to start, the One Funnel Away Challenge was created for PEOPLE LIKE YOU!

It’s a 30-day extensive traning from Russell Brunson (co-founder and owner of Clickfunnels) and it will definitely give you a head start in your business.

Want my complete and honest review of the One Funnel Away Challenge? You can check it our here.

Drop Servicing Pros

  • Low-Risky: What makes drop servicing low-risky is that there’s no shipping involved in the process (you’re selling digital services.) Also, you won’t worry about refunds & returns that can ruin your business.
  • Low overhead Needed: Are you looking forward to starting an online business without breaking the bank? Drop servicing could be a great fit! You just need to create a storefront and promote it to get clients!
  • Highly flexible: This is a business that you can run and manage from anywhere, at anytime you want! It’s like running a whole agency but hire freelancers to get the work done for you instead of having employees.
  • Fruitful & Rewarding: Unlike dropshipping or any other online business, drop servicing profit margins are high (Average of 3 times.) Which will allow you to make a 6 or even 7-figure living from home!
  • Potential For Monthly Recurring Revenue (MRR): What’s better than getting paid for months or even years to come from same clients? Some services allow you to earn monthly recurring revenue (learn more here.)
  • Customers Are All Yours: If you are dropshipping on eBay or Amazon, you’re not building a brand for yourself, you are growing others’ businesses! This is not the case with drop servicing. You will be building a brand name for your very own and customer are ALL YOURS!
  • Can Get Completely Passive: That’s true, and that’s what’s cool about it! Money is rolling in, and freelancers are doing the work on your behalf. The only active role needed is customer support to make sure to fulfill potential buyers’ questions, and this can be automated by hiring a VA!

Drop Servicing Cons

  • High Competition: Well, competing with tough guys in the market could not be a great idea. However, this is an obstacle that all businesses have.

The Fix: Perform a good search analysis and leverage a tool called “Google Trends.” Here’s a great resource for the best 7 drop servicing niches.

  • There Are Some Limitations: Although the drop servicing business model allows you to sell any service on the web, you can’t just sell anything! You need to sell services that you are knowledgeable about!

The Fix: You don’t need to be an expert in the niche, but you should sell a service that you at least understand how it works, so you’d look knowledgeable to fulfill any question you may be asked!

  • Delivery Time Is An Issue: Some freelancers will just not commit to deadlines because simply they may be handling multiple projects at a time. As a business owner, your number one priority should be customer satisfaction!

The Fix: Be picky with your freelancers and don’t hesitate to run test orders to get familiar with the experience they provide. Also, just don’t rely on one freelancer!

Is Drop Servicing For You?

A fundamental question an entrepreneur must answer when starting an online business is; Is this business really for me?

This is exactly why I’m writing you the upcoming chapter; to help you identify whether it will work for you or not.

Who Is Drop Servicing Good For?

  • For all people who are looking forward starting a profitable online business.
  • For those who have the mentality of success and want to be financially free!
  • For those who are willing to invest a tiny budget to learn, start and grow an online business they are proud to own and promote!
  • For people who believe in hard work, and not in an overnight success.
  • For people who are not sure whether to dropship or not.
  • For all folks who are willing to put in the time and effort now and reap the rewards soon.

Who Isn’t Drop Servicing Good For?

Certainly, not all business models fit all people! Therefore, drop servicing is NOT for you if:

  • If you hate dealing with customers; Customer support is a major role in this business model in order to guarantee their satisfaction.
  • If you are not willing to invest your time and money in learning and starting your online storefront.
  • If you’re looking for a hit & run kind of business or an overnight success!

11 Tips To Help You Succeed With Drop Servicing

🟢 Pick The Right Niche: It’s always advisable to go with a niche that you’re passionate about.

Certainly, you would need to get involved in a niche that has demand that you can supply! So, a little research can give you a head start towards starting your business.

Related: 7 Top Niches To Drop Service In 2020 (Rewarding & Recurring)

🟢 Pick The Right Platform: Your website will be the cornerstone of any kind of business. But, what platform should you be going with to create your online storefront?

Today, there are various solutions and platforms that you can leverage to build an online business with sustainable growth.

I’ve recently released an article on this topic, you can check it by clicking here 3 Best Drop Servicing Platforms: (Cheap, Easy & Convenient).

🟢 Consider Using The Up-Selling Technique: Did you know that it costs McDonald’s $1.91 in advertising to get you into the drive-through? And when they sell you a burger for $2.09, they ONLY make $0.18!

But… when they upsell you fries and a coke for $1.77 more, they make (and more importantly keep $1.32 profit!)

Yes, 8 times the profit of the initial sale! Pretty cool, don’t you think?

But, what does that have to do with you?

You need to do what McDonalds did, and setup a sales funnel… Because a static website won’t serve your business the way you want it to.

Want to learn from a leader in the funnels industry called Russell Brunson? Brunson was able to grow his company (Clickfunnels) by over 4300% in less than 3 years.

And he has a book called the Dotcom Secrets that teaches 28 virtually unknown secrets for growing any business online.

You can grab your FREE copy of the Dotcom Secrets Book by clicking here.

dotcom secrets

WANT 8 MORE NOTEWORTHY DROP SERVICING TIPS? CHECK OUT THE COMPLETE LIST HERE (OPEN IN A NEW TAB!)

Conclusion

I know how intimidating it can get picking the right business model when starting an online venture.

Drop servicing is becoming the new “Drop” trend and it’s a perfect time to jump on the wave while it’s still not saturated.

Are you wondering whether drop servicing is for you or not? Not anymore my friend!

This article was written to introduce you to drop servicing and show you the promising potential of this business model.

By the time you finish reading this article, you would be familiar with this business’s pros and cons that can help you decide whether to start with it or not!

knowledge broker blueprint

Want to learn those experts’ techniques in climbing the ladder? Click here to join the FREE training now!

What did you like most about the drop servicing business? Hope that you liked it!

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Cheers,
Odeh Ahwal

Odeh Ahwal

So behind every great blog is usually someone who runs it all. That would be me, Odeh Ahwal. When I first tried to start an online business, I've struggled and got lost in Youtube videos. I've lost tons of money trying to figure it out. That's until I've one day stumbled across dropshipping & affiliate marketing! I've actually had huge success with those two business models. I've created EcomDimes with a mission to help as many entrepreneurs as possible, share my experience and just introduce you to new business opportunities and different ways to make money online!

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