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Did you know that the average cost of starting a brick-and-mortar business is something around $45,000? Unfortunately, this is way beyond most people’s capabilities and abilities!
Alternatively, there’s a microbusiness that you can start for around $100 (or less) yet has substantial potential financial gain. This business is called drop servicing!
So, what does it really take to start a drop servicing side-hustle on WordPress?
| To start a drop servicing business on WordPress, you’d need to: |
|---|
| 1. Select your niche and assess competition |
| 2. Purchase a domain name and a hosting plan |
| 3. Customize your online storefront |
| 4. Get a suitable and inviting theme |
| 5. Find freelancers and services |
| 6. Create an astonishing portfolio |
| 7. Promote your business to the world |
In this article, I will be going through the exact step-by-step process of starting a drop servicing business from scratch using WordPress.
If you find this article helpful and inspiring, don’t forget to share it with your friends and make sure to stick to the very end as I have a step-by-step tutorial for you!
What is drop servicing
Drop servicing is a business model where you acquire leads/clients for a given service and then have the service performed by another party that isn’t your employee.
It’s a great model because you can scale much more quickly as you don’t need to incur the fixed costs of full-time employees who are experts in the service you offer.
So, unlike dropshipping, in drop servicing, you would be selling digital services instead of physical products!
Drop servicing vs drop shipping
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 service is called Drop Servicing, given the name due to its similarities with Dropshipping.
Whereby a seller, would list a variety of services, such as;
- Web design
- Product research
- Voice-overs
- Social Media Management
Among other services, but would outsource or purchase the actual services from another freelancer or company. Sometimes using the same site their services were sold on to accomplish this.
The original seller becomes an unknown middleman between the buyer and the actual content producer.
Related: Drop Servicing Vs Dropshipping (The New Baby Born Business)
The 7-step process for starting a drop servicing business on WordPress
Phase 1: Select your niche and assess the competition
Deciding what you will be selling is the first step of your 1-mile drop servicing journey!
There are thousands of services that are being offered online as more websites keep getting created day after day.
Although you’re allowed to sell any kind of service online, you would need basic knowledge about that particular service you want to resell to others!
Having answers to the below questions is vital when picking a niche for your drop servicing business.
You need to make sure to tick each question before taking your next step:
– Do you have enough knowledge about that servicing niche?
You don’t need to be an expert in a particular niche or service! However, you need to understand how does it actually work!
When running a drop servicing business, you’ll be the expert in your customers’ eyes.
They know nothing about your business structure or about the actual freelancer who does their work!
They only know you. Therefore, having enough information and knowledge about the service is mandatory!
– What is the competition status and level of that niche?
Competition is an excellent indicator of a specific market’s health. But while it can be a great thing, competition can sometimes obstruct you from achieving your desired goals.
Assessing the game is vital when picking a niche, not just for drop servicing, but for any other business, whether it’s offline or online.
There are some cool tools that you can leverage to learn more about what’s going on on the internet.
The best tool that I always recommend when it comes to market research and analysis is a tool offered by Google, called Google Trends!
Google Trends is a tool or service offered by Google that lets you see the popularity of particular search terms in Google search.
The best two things about Google Trends is that it’s so accurate as it shows precise terms that have people shown interest in and have been searching for on Google.
The second best thing is that it’s entirely FREE to use!
Let’s take grant writing for example, and searching for that term on Google Trends.
This particular search term tends to be stable and has enough competition. And it still shows a promising trend.
Google Trends allows you to select the time frame, region, and search source (Google, YouTube, Image Search, News Search, Google Shopping).
It also breaks down results by subregions and shows related topics and queries.
– Is there real interest and demand for it?
Before deciding on a specific niche, you need to ask yourself; is there a demand that you can supply?
Thousands of websites are created on a daily basis, and tons and tons of services are offered online, but you definitely need something that has a stable interest and demand.
Behind all of those websites are humans just like you and I, who are responsible for the awesome designs, content, logo, hosting, content, and more!
– Does that niche have up-selling and cross-selling opportunities?
Up-selling: It’s a marketing technique to increase the average order value (AOV), on which the customer is offered a higher ticket/complementary product, an add-on or an upgrade upon his checkout or purchasing a low ticket offer.
Just look at these up-selling stats:
- Upselling increases revenue by up to 30% on average!
- Upselling current customers is 68% more affordable than acquiring new customers!
- On average, up to 90% of revenue comes from upsells and renewals!
Cross-selling: It’s a marketing technique to sell current customers-related products to what have been purchased before!
It’s that type of recommended product at the end of each product’s page on Amazon!
Did you know that cross-selling contributes up to 35% of overall revenues in Amazon, according to Invespcro?
With that being said, you should figure out whether your niche has a bunch of complementary services to up-sell and cross-sell or not!
A person who’s interested in a WordPress website setup would also be interested in a logo, theme, optimization, etc.
– What is the payment structure for services within that niche?
You’re probably reading this because you’re 99% interested in starting a sustainable business with proven growth and potential financial gain, right?
There are tons of ways to make money online! However, you should not be aiming for (what I personally call), a “hit & run” type of business!
Making some bucks here and there is not a business! A business is what brings you cash day after day, and month after month!
Therefore, you should be aiming to acquire customers that are willing to pay you a monthly recurring revenue (MRR).
Related: The number one affiliate program with the best monthly recurring revenue (MMR) structure! Learn more about Clickfunnels affiliate program!
There are some services that do not have MRR, such as:
- Logo Design
- Site Optimization
On the other hand, there are services that have the potential to keep getting paid for at least a couple of months. Some of those services are:
- SEO (Search Engine Optimization)
- Content Writing
- Social Media Management
Reselling and getting involved in services that people need every month is vital when it comes to drop servicing.
You only pay once to acquire a client, but once you deliver what you promise with and meet their expectations, be prepared to keep getting paid for months to go!
Phase 2: Purchase a domain name and a hosting plan
After getting done with the market research and determining your niche, your very next step would be to lock your dream domain name and purchase a hosting plan!
It’s obvious that every new website needs web hosting, and this is what I’ll be covering in this section.
First of all, a domain name is a URL that’s going to represent your business, and it will be in this form: https://YourBusinessName.com
Pro Tip: Although this may seem so much complicated as a beginner, you don’t need any coding or technical skills or background! HostGator allows you to start a website from as low as $2.75! Stick around to learn how!
The fact is, hosting is the spammiest affiliate link on the internet, cause so many internet marketers are making most of their money with affiliate links to hosting.
I’ve recently published an article that compares the top 3 hosting solutions | The best, cheapest, and fastest! You can read it here.
For this tutorial, I’ll be using HostGator since it’s the cheapest and most reliable solution for beginners and experts alike.
Are you ready to start creating something awesome?! Open “HostGator” in another tab or click the image below and follow along with me!
After jumping to HostGator, you will land on a similar page. You’d need to pick a hosting plan.
Frankly, if you are just starting out, you won’t need more than the “Hatchling” Package.
Purchasing a hosting plan is a very seamless process. After selecting your desired package, here are the steps that you would be exactly going through:
Everything is done and purchased within the HostGator platform! Here is where you find an available domain name and register it.
Pro Tip: If you’re not sure what to name your business, here are 27 brand name generators that help you find a suitable name for your business!
Obviously, if you already have a domain name that you want to assign to your new website, you would need to switch to “I already own this domain” tab!
Here’s where you select your package type and billing cycle.
I can’t recommend a package over another! The only advantage for getting bigger plans is that you will lock a better discount!
Plus, plans of 1 year and above will include a free domain name.
Here’s where you can fill in your billing information so you can be charged for the chosen plan.
After getting done with this, you’ll be asked to pick the additional add-ons. I highly recommend putting a checkmark on the SSL certificate and site lock essentials.
If you’ve decided to go with a high plan, just don’t worry about the SSL certificate, it’s included in the package for free.
The next step is filling in your discount code. If you’re registering through my co-branded page, your discount code will instantly be filled in, giving you a 60% off automatically!
Finally, click that you agree to the Terms and Conditions, then the big blue Checkout Now Button.
Congratulations! You’ve just purchased your domain name and hosting plan! A few steps and you’ll be there 🙂
After getting your HostGator account done and ready, I would recommend you go to your backend office and start surfing their platform.
Get familiarized with each section and tab in the dashboard!
By the time you successfully finish your order, you’ll receive a confirmation email that contains your login credentials, and this is how does it look like:
Those are the login info that you’d need to log in to your HostGator backend office:
Wondering what would their control panel look like? Here it is:
You’re done with hosting now. Your next step would be installing WordPress (also easy peasy) to start building your drop servicing business from there.
Just sit back and watch how it’s done so you can go and do the same.
Clicking “Get started with WordPress today” will allow you to install WordPress on your website, and it’s just a matter of a minute to have it installed.
Installing WordPress on HostGator is instant, unlike other hosting companies that make it complicated.
After getting done with the installation of WordPress, you will receive a new email that contains your new credentials.
Go ahead and fill those credentials here and you’re good to go!
After that, you’re finally the proud owner of your new WordPress site. Did you know it’s that easy?
And this is what takes us to phase number 3; picking a reliable theme for your storefront!
Just click “No thanks, I’m a web designer” and I will show you the best marketplaces for online assets and themes in the next section!
Here is your new backend office, where you would actually go and log in to your website 🙂
Phase 3: Get a suitable and inviting theme
Not all themes can serve all niches. You would need to pick a theme that’s designed for the same purpose as yours; selling services!
A theme plays a big role in your business, and it should be professional, well-organized, navigational and inviting!
And most importantly, it should be responsive for mobile devices.
So, where can you find premium and verified themes to purchase? Below are the most trusted and verified theme directories and marketplaces:
– Envato Market – Theme Forest
If you are on a shoestring budget, you can try to find a suitable free theme offered by WordPress.
However, having a premium theme will give you a headstart towards nailing that trust and creditability.
A professional theme offers more features, is usually responsive, and is easier to navigate!
So, how to install a new theme on your WordPress?
First of all, to install a theme on your WordPress website, you would need to go to your backend office on WordPress and head to Appearance – Themes.
Then, you can either install a theme from WordPress itself or you can purchase one from the previously mentioned third-party marketplaces!
Phase 4: Customize your online storefront
The good thing about starting an online side hustle is that you can set your own rules, schedules, and policies.
After having your website up and running, it’s time to populate it with the needed pages and policies.
It’s like adding a unique interior design to a brick-and-mortar store!
Your website should have clear statements of what you will be offering and promising your customers.
Also, those pages should be easy to navigate by adding them to the header or footer sections of your online storefront!
Phase 5: Find freelancers and services
Once you’ve decided on your service niche, the next thing is to choose your service provider or freelancer that will get the job done on your behalf.
Now, you may be wondering where can you find services to flip online and freelancers who are willing to work with you as a reseller, right?
The fact is, finding freelancers and services is just the most natural part of this business model!
For this, there are many platforms to find verified, and professional freelancers that cost little to nothing, and among them are:
– Upwork
– SEOClerks
– Freelancer
– Fiverr
– PeoplePerHour
– ProBlogger
– FreeUp
Although you have access to millions of freelancers online, you should be picky in choosing your team, because a lousy freelancer can ruin your business and reputation!
Be sure to test any of the freelancers you’ll be working with. You can order a test service to determine the quality of their work and their delivery duration.
Pick your favorite freelancers, at least four of them to avoid unnecessary stories that touch the heart like service delay or unavailability.
It’s also good to check their reviews and the number of their completed jobs to ascertain how good they are at what they do.
You can start communicating with freelancers online and building healthy business relationship together.
Also, you can tell them that you’re a reseller and not a random buyer; they would even be willing to give a special discount!
Pro Tip: Choose a set of freelancers and don’t just rely on one freelancer only! Freelancers would be handling other projects at the same time as yours, so, delivering the order on time may slip out of their hands sometimes!
Phase 6: Create an astonishing portfolio
Having a website alone is not enough for attracting your dream buyers!
Creating a portfolio where you showcase your skills and services should be your next step to show people what exactly you can deliver.
Portfolios are just great to demonstrate what you’re business all about.
If, for example, you sell designing services, the more illustrations and designs you show, the more likely your customers to find relevant logos or designs for their business.
A great portfolio showcases your work to potential customers and clients; it represents evidence of your relevant skills and abilities!
It simply helps you to show and not to tell, by providing that visual experience.
Phase 7: Promote your business to the world
Now, you are the proud owner of your new drop servicing business, and from now on, you should be aiming to get profitable.
There are a bunch of ways to get traffic online, converting traffic!
Some of those methods are:
- Facebook Paid Ads
- Google Ads
- Media-Buying
- Email Marketing
For a beginner, Facebook advertising tends to be the most affordable solution and the easiest to learn as well. Although almost every business has a Facebook business page and leveraging this huge platform, the fact is, over 62% of small businesses fail with FB. Ads!
This is a skill that you can either learn or outsource from freelance marketplaces like Fiverr.
The one thing that professional marketers do and amateurs do not do is build an email list for businesses!
Related: Why Should You Build Your Business Email List In 2023?
Building your email list will give you multiple advantages:
- It helps you stay under your readers’ eyes all the time.
- Build trust and a healthy relationship between you and your customers.
- Upsell them at ease by merely reaching out to them via email.
And here’s a detailed tutorial by the great Franklin Hatchett to help you get started with Google ads:
Conclusion
With all that the internet is offering today, starting an online business has never been easier!
This article is a step-by-step guide for complete beginners who are looking forward to starting a profitable drop servicing business on WordPress.
Alternatively, you can start your drop servicing on Shopify; a leading eCommerce solution that has everything you need to start selling online!
To learn more about starting a Shopify drop servicing business, I invite you to check out my other step-by-step guide here!
Are you considering starting a drop servicing business? What prevents you from starting a killer business that generates real money?
Drop me a comment below and I’m more than happy to reply back to you! 🙂
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Cheers,
Odeh Ahwal
Drop Servicing Frequently Asked Questions (FAQ)
Drop servicing is like the new baby born of dropshipping! It’s the act of reselling others’ services instead of physical goods!
Yup! Drop servicing is a legit and legal business. The fact is, you would be amazed how willing freelancers would be to work with you as a reseller!
You can find a bunch of verified freelancers on freelancing directories or marketplaces that connect people who sell services and people who are looking forward to buying a service!
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!
