We at eComDimes are on a simple mission; help our readers earn extra money and improve their financial lives. Some of the links in this post may be from our partners. Here’s how we make money.
“The riches are in the niches!” Have you heard that saying before?
In fact, choosing a niche is the one thing that’s holding some people back from starting their very own online business! So, what makes a good drop servicing niche? This is what I’m about to share with you in this article.
A good drop servicing niche is not only measured by its profitability. However, it should be really needed by a certain group of people, and the lower the competition is better! Also, niches with monthly recurring revenue and up-selling opportunities tend to be more rewarding in the long run!
In this article, I’ll be going through the same questions that I ask myself every time I start a brand new drop servicing business.
If you find this post inspiring and helpful, don’t keep it to yourself and share it with your friends.
And now, let’s just dive in…
What Makes A Great Drop Servicing Niche?
Although drop servicing is a profitable business model, picking the right niche can actually determine whether you’re going to get profitable or not!
So, what to consider when picking a drop servicing niche? Having answers to these questions is crucial when starting a drop servicing business:
✅ Do You Have Enough Knowledge About The Service?
While you don’t need to be an expert in the service that you provide, you should at least know how it exactly works so you look knowledgeable in your customers’ eyes!
Having enough knowledge about the service you sell will give you a fair advantage and will help build the trust between you and your clients.
People ONLY buy from those who they trust… So, why not backing up yourself with some information that will help you stand out of the crowd?
There will be the time where one of your potential customers ask you something about your services.
In fact, the vast majority of people would rather start a conversation with the service provider before they place their order. They feel more secured and fulfilled.
Therefore, if you’re able to professionally fulfill their questions and queries right away, you will be a step closer to trigger that buying decision and get them, lifetime customers!
Related: 3 Best Drop Servicing Niches For Monthly Recurring Revenue
✅ What’s The Status Of Competition?
While competition is a great indicator that the service is really needed in the market, competing with big guys is definitely tough!
Before deciding your market niche, it would be great to conduct some research that can help you learn more about the competition level of the service.
Now, there’s no magic number or rule for measuring the competition of a particular service. An overly saturated niche will be easy to spot right away!
Take SEO, for example, if you do a simple search on Google, you will find that the first results are just ads… which means that there actual businesses paying Google per click for those terms.
The same applies for web hosting and digital marketing… and many other competitive niches.
In addition to that, checking what’s already offered on freelance marketplaces is a smart move! It will give you some insights of what’s needed and what’s being offered by your competitors.
✅ Is There A Demand That You Can Supply?
This is truly a great question because the market is significantly based on both demand and supply…
You would need to come up with a niche that’s needed by people, so you can receive actual orders. Otherwise, you’re services will end up being just listings on your website withoutt getting any orders.
You have to remember that people don’t just buy products and services… they buy solutions to their problems!
So, wherever there’s a problem, there’s a fix and there’s a need!
✅ Does It Have A Huge Potential Financial Gain?
The biggest reason why I have shifted from dropshipping to drop servicing is that in the latter, you can make more money with less volume of orders.
However, not all services are treated equally!
If you’re selling a logo design services, for instance, you won’t have that huge potential gain when you’re selling a digital marketing monthly management service, for example!
You’ve got my point…
A great drop servicing niche will allow you to make the most money with the least volume of orders. And if it does have a satisfying potential gain, that’s great because your average order value would be relatively higher.
In other words, you’ll make extra money, and you’ll break even or profit faster!
✅ Is There Up-Selling And Cross-Selling Opportunities?
These are just two proven marketing techniques that can drastically change your monthly earnings…
Did you know that it costs McDonalds $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 up-sell you fries and a coke for $1.77 more, they make (and more important) 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? Well, If you’re like most people who sell stuff online, you need to do what McDonalds did, and setup a sales funnel.
But instead of having people go through a drive-in window, online, they go through a “capture page” where you can gather their contact information and follow up with them through email…
If you’d like to learn how to imitate McDonald’s approach and generate extra thousands of dollars from the same number of monthly orders,
then I highly recommend you grab your FREE copy of the Dotcom Secrets book that will teach you exactly that, plus teaching you how to scale your business and take it to the highest levels! (Get your free copy from here)
✅ Can It Be Offered As A Monthly Subscription?
Have you ever dreamt of generating passive income? Passively while you’re travelling or even sleeping…
Well, if so, MRR (monthly recurring revenue) is what you should be aiming for!
Monthly recurring revenue is the predicted revenue that you can count on receiving every single month!
There are some niches and services that allow you to get paid on a monthly basis, such as social management, content creation and SEO. These services need constant efforts and multiple months of hard work to see results.
So, assuming that you’re selling one of those services that require a multiple-month commitment, you’ll get paid every single month, or sometimes for over a year!
I’ve recently published an article about 7 of the most rewarding and top performing drop servicing niches for monthly recurring revenue. You can check it out here.
Selling that type of services that require some kind of commitment is great for you and for your business for the following reasons:
- It will generate you more money along the way.
- Higher customer lifetime value (they will spend more with you)
- Lower customer acquisition cost (You pay once to acquire the customer then it’s all pure profit!)
The eServices industry is rapidly growing and its global sales are projected to jump the $200 million mark by 2021!
And by 2024, the global eServices sales are projected to hit $300 million, which is an annual growth of 11.8%…
This only shows the huge demand for digital services as there are thousands of websites being created on a daily basis, and behind all of those websites are people who are responsible for its design, content and marketing.
The fact of the matter, picking the right drop servicing niche is what usually holds people’s back from starting their online businesses.
Luckily, this article has revealed the must-answer questions when starting a new drop servicing venture.
Do you want to learn the all secrets of this new-age business opportunity called drop servicing?
Enrol Today And Take Your Business To The Next level!
Unlock access to our step-by-step, actionable eCommerce blueprint for entrepreneurs who want to start or scale their drop servicing online business!
I hope that you got value from this post, and happy drop servicing journey!
Hand-Picked Articles For You
- 3 Best Drop Servicing Niches For Monthly Recurring Revenue
Frequently Asked Questions
The best drop servicing (at least for me) is sales funnels! Using funnels is an approach that’s becoming popular each day as it helps businesses get more leads, sales, and customers by establishing a healthy customer journey on your webpages.
There are free ways of finding drop servicing clients that include searching on relevant forums, posting on LinkedIn, and searching on freelance marketplaces. Paid methods on the other hand include Google and Facebook ads and leveraging what’s so-called Clickfunnels!
Drop servicing is a relatively brand new business model, and you can barely find someone who talks about it. Proudly, eComDimes has recently released the eComDimes ultimate drop servicing blueprint that goes through the whole business model from scratch!