2. WHAT IS DROP SERVICING?
Drop Servicing (also known as white labelling or service
arbitrage) is the practice of selling a digital service to a
client with pressing needs at a fixed price and finding
someone else willing to do the job at a lower price.
Your job is to ensure that this is a smooth transaction and
your reward is that you get to pocket the difference.
For example, a client pays you $500 to edit their YouTube
video.
Then you go out and find a skilled service provider willing to
do it for $200.
Once your client approves the job, you get to keep $300 as
your profit.
Difference Between Dropshipping And Drop Servicing
I know you must have heard of drop shipping when you
started your research, but it is different from drop servicing.
Although there’s a lot of overlap between dropshipping and
drop servicing.
While both strategies involve partnering with another
individual or company to fulfil client orders, there are
fundamental differences between the two.
Dropshipping is a popular and affordable business model
that lets you sell physical products without managing your
own inventory. Your supplier stores, packs, and ships the
items directly to your customers.
Drop servicing, on the other hand, involves the sale of
services like copywriting, graphic design, and social media
management.
However, you don’t provide these services yourself, but
rather hire freelancers to do the work. That work is then
sent to your clients.
So the main difference between dropshipping and drop
servicing is that one involves the sale of goods, while the
other deals with the provision of services.
Another difference relates to the amount of competition on
the market.
Since drop servicing is a relatively new business model, the
market isn’t as saturated.
Examples Drop Servicing for Beginners
You can do the drop servicing business by offering any
service available on the market. That may include:
● SEO
● Digital Marketing
● Content creation
● Graphic Designing
● Website development
● Link building
● Guest posts
● Content writing
● Video editing
● Copywriting
● Social media management
● Running ads
● Animation
● Creating ebooks
And the list goes on! You can sell all these services. And
outsource them when you get your customers.
That's hugely satisfying if you know how to do it correctly.
But you may still wonder why people will buy services from
you. Let's explore why!
Why People Will Buy from You
A massive list of websites offers freelance services like
Upwork, Fiverr, Freelancer, and more.
And there are a lot of people who provide the services
directly. Then it's fair to wonder why people will buy from
your drop servicing business.
And here are the top reasons for that:
Entrepreneurs and businesses don't want to manage
freelancers.
They want the services delivered without having to go into
details
And they don't want to take the time in finding the right
service providers
For them, it's worth it. Why? It saves a lot of time and
energy without a doubt.
If you build a reputation for providing the right services
professionally, you'll eventually get a lot of clients.
Businesses don't want to trust just about anybody.
quote if you want to start