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Chances are if you’re into the digital world, you’ve heard about the new business model called “Drop Servicing.” But, is drop servicing a legal business model?
Abso-fucking-lutely! Drop servicing is a legal business model, and the fact is, you would be shocked how willing freelancers are to do business with you and let you resell their services online! Long story short, you need to understand how it works and be picky with the freelancers you work with!
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Let’s just dive in…
What Is Drop Servicing
Similar to dropshipping, drop servicing is the act of re-selling others’ services for a higher price and pocketing the difference.
The customer will find you first and order the service through you, but you will pass it on to the people who are really doing the service.
The business model really centers around becoming the middle person between buyer and actual ‘fulfiller,’ allowing someone to resell other people’s services, without ever having to declare or explain that to the buyer.
It has grown at the same time the gig culture grew, with many countries having the expertise to create goods and services, but may not have the skills or the knowhow to get those products in front of the right markets.
Is Drop Servicing A Legal Business Model
Yup! The drop servicing is unquestionably a legal business model, and there’s nothing that makes it an unlawful business!
However, you should be aware of what you’re actually doing, and how does it exactly work.
If you don’t know what’s going on or how does the service work, you’ll find it hard to convince your clients to buy from you.
There are literally thousands and thousands of freelancers offering their services online.
You’ve got to give your potential clients or people who land on your website an irresistible offer that they cannot afford to waste!
Now, from a freelancer’s perspective, they for sure looking forward to having more clients and business. No one says no for extra revenue and business!
Therefore, they would be more than happy and willing to do business with you and let you flip their services online; they are getting paid anyway!
If you want to take it a step further and build a healthy relationship with your freelancers, you would want to tell them more about you and your business. You may even get a discount for ordering in bulk 🙂
Here are few tips to stay professional and legit in your customers’ eyes:
✅ Don’t promise what you can’t commit to or deliver! Know exactly what your third party (freelancer) is going to give you as an outcome and offer it to your clients!
✅ Stay away from traps and never try to fool your clients! You should be aiming for building trust and transparency!
✅ Be picky with your freelancers as they can be the reason behind your business’ success, or can be a complete recipe of failure for your business!
✅ Don’t rely on a single freelancer to complete the job on your behalf. Freelancers can usually handle multiple projects at a time, and things would slip off their hands!
Drop Servicing From A Customer Point Of View
Are you wondering what would the service supply chain look like? This is the exact process that customers go through when ordering a service from you:
1️⃣ Customer A places an order for a service on LogoPros.com and receives an email confirmation of the process. Let’s say the total came to $69.99!
LogoPros receives the same email confirmation as well as Customer A’s payment.
This is usually made possible by Shopify as it sends out the confirmation to both buyer and seller.
2️⃣ LogoPros sends the order to a designer who will process the order. LogoPros will then be charged for the purchase.
For this example, let’s say the designer charges $9.99 on Fiverr for each logo design.
The drop servicing business owner (LogoPros) will pay that amount, and the difference is the profit the retailer will make. In my example, LogoPros will net a profit of $60.00.
3️⃣ The designer will then finalize the order and have it ready for the reseller.
Although the designer delivers the service, the order will be addressed from LogoPros.com, and the LogoPros name will appear on the invoice.
4️⃣ The designer will deliver the final design to the drop servicing website (middle-man).
5️⃣ The customer receives the order from LogoPros.com and enjoys the logo.
You can see how the drop servicing website owner and the freelancer (designer) both have to work together flawlessly.
Now, that’s the service supply chain in action. When done right, it’s a smooth process that results in minimal work for everyone involved.
How to get started with Drop Servicing
In short, to get started with Drop Servicing you would need:
🔹 Pick a niche and decide what you want to sell
You can literally sell any sort of services online. However, you should have a basic knowledge about how does the service work!
I always recommend you start by picking a niche of services that you know about so you can fulfil your potential clients’ questions efficiently.
Also, you would need to pick a niche that has a relatively low competition so it would be easier for you to compete by offering your services.
Jump on Google and start seeking the available opportunities. Google also has a great tool that’s called Google Trends. And it’s for FREE!
You can go to Google Trends and see the interest over time, along with related trending topics and queries.
Above all, you should ask yourself; Does this niche has a demand that you can supply? If so, it could be a lucrative opportunity to offer your services online.
🔹Find freelancers and services
By jumping on freelancing directories and marketplaces, you can find an unlimited number of freelancers who are offering their services in all niches and categories.
Hit them up and introduce yourself and your business, and start seeking the available opportunities.
You have to be picky with your freelancers because a bad freelancer will ruin your whole business, reputation and creditability.
Some of those freelancing directories and marketplaces are:
🔹 Start building your website
With all that the internet is offering today, building an online storefront is a straightforward process that even complete beginners can start a website in a matter of minutes.
However, when building an online drop servicing website, there are some things that you need to take into consideration:
➡️ The website needs to be professional and good-looking.
➡️ It has to be integrated with payment gateways so you can accept payments from your clients.
➡️ It has to be mobile-friendly and responsive for all kinds of devices.
Now, for building the actual drop servicing website, there are multiple options and solution that you can go with. It’s a matter of preferences. These are:
|Platform||Cost/Month Or Year||Special About It|
|Shopify||$29/Month||Mainly designed for selling online|
|WordPress||$94-$130/Year||Solid; Over 38% of all websites are powered by WordPress|
|Clickfunnels||$99-$297/Month||Clickfunnels has Pre-Built funnels in all niches and industries.|
🔴 The first option is to leverage an eCommerce platform called Shopify, that was designed for selling online.
Shopify allows you to start an online storefront with no coding or technical experience, and also capture payments from your customers.
I’ve recently published a complete tutorial on how to build a drop servicing business using Shopify. You can find it below:
🔴 The second option is to have a self-hosted website on WordPress. According to W3Techs, over 38% of all the sites on the Internet are powered by WordPress.
I’ve also published an illustrated guide on how to start a drop servicing business on WordPress. It’s a comprehensive article with actionable steps.
🔴 Leverage sale funnels and a toolkit that’s called Clickfunnels! Sale funnels work in a different way than a static website does!
Clickfunnels is the best landing page builder that has everything you need to succeed your business with sale funnels!
Russell Brunson (owner and founder of Clickfunnels), had a big announcement last week. He has created something called the “One Funnel Away Challenge” to help you get started and build a profitable business by using funnels!
By the time you finish the One Funnel Away Challenge, you will have your first (or next) highly converting funnel up and running and start generating leads for your business.
To learn more about the One Funnel Away Challenge, I recommend you check out my other in-depth article around this.
🔹 Promote your drop servicing website
Now, after having your online storefront up and running, you need people to land on it so you can get leads and sales that can be reflected in 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.
To learn how can you bring truckloads of traffic to your website, I suggest you grab your FREE copy of the Traffic Secrets Book.
Traffic Secrets Book: Grab your FREE copy by clicking here!
Drop Servicing Frequently Asked Questions (FAQ)
Drop servicing is a highly profitable business model that allows you to make 6-figure a year or more! Your profit, however, depends on how much you sell the service to your clients and how much you pay your freelancer to got the job done on your behalf.
Freelancing directories and remote job marketplaces are two great ways to start with! You can find trustworthy and verified freelancers!
Dropshipping is the process of selling other third-parties’ products without the need of having an inventory. Drop servicing, on the other hand, is the act of reselling others’ services instead of physical goods.
There are three main options for starting a drop servicing business—Shopify; an eCommerce platform that’s designed for selling online. WordPress; allows you to start a self-hosted website. Clickfunnels; enables you to build highly converting funnels and it has a bunch of pre-built landing pages and funnels in almost all niches and industries.
If you’re the kind of person who’s looking forward to starting a profitable dropshipping alternate business and willing to put in the hard work, drop servicing can be a better fit and will work for you!
Drop Servicing Course
Drop servicing is a relatively brand new business model, and you can barely find enough information around it on the internet.
I couldn’t find a reliable, comprehensive drop servicing course that goes beyond what the “drop servicing” category is talking about here on EcomDimes.
You can keep checking the Udemy and Skillshare platforms for new courses and opportunities as it keeps evolving and becoming a big thing.
If you’re a complete beginner who’s looking for a quick step-by-step tutorial on how to start a drop servicing business on Shopify, I can offer you my free dropshipping course as an alternative.
Dropshipping and drop servicing have the same concept and approaches. So, you’d need to follow everything mentioned in the course except the part of importing products and replace it with digital services instead.
Jump on the course and start exploring it. There’s nothing to worry about, and it’s entirely for free. By the time you finish this 8-video training series, you would have your online storefront up and running.
So, you’re looking forward to starting a drop servicing side-hustle but a little bit intimidated and wondering if it is a legal business, huh?
You are totally right! Because no one would be interested in involving in an illegal or unlawful activity!
In this article, I’ve answered a common question by our readers whether drop servicing is a legal business; and it is a legitimate and lawful business for sure.
Drop servicing is a very lucrative business opportunity that allows you to reap the rewards of being your boss and make a six or even 7-figure a year!
Making money online is not a myth anymore! There are various business opportunities that you can use to create new sources of income from the comfort of your home.
What platform are you planning to leverage to start your drop servicing business today? What is preventing you from starting?
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