If you just want to make an extra 50 dollars a day online, easy peasy. The cool thing about drop servicing is you can grow it to whatever size you want. The trick, of course, is actually finding those high-paying clients.
You get cheap work, and they get projects delivered to them on a silver platter. If you take that out of the equation for them so they can focus on their skill, it’s a win-win. Many freelancers suck at marketing themselves and finding good clients. Why would a freelancer work for low rates when they could cut you out, work directly with clients, and earn way more money? The key is finding a skilled freelancer with low rates-giving you enough margin to mark-up their rates, re-package their services, and sell them for a profit. Since you outsource all the work, your profits are only limited by the amount of clients you can land. Unlike freelancing, a drop servicing business model is easily scalable. How Does a Drop Servicing Business Make Money? With drop servicing, clients buy services from you at a mark-up, and your freelancer takes care of the work. They buy from your online store at a mark-up, and the factory sends them their product. With dropshipping, you create an online store that acts as the middle man between a physical product manufacturer (e.g.
Dropshipping: If you’ve ever heard of dropshipping, this is the same idea. We’ll get into a bunch of different drop servicing examples in just a sec.ĭrop Servicing vs. They subcontract the job out to experts (electricians, carpenters, bricklayers, etc), then mark up their price to make a profit.ĭrop servicing is the same-just with digital services (usually). When you pay a construction company to build you a house, they don’t do it all themselves. The drop servicing model is also known as “service arbitrage”, “sub-contracting” or an “agency model”.Īnd while it is marketed as a fancy new online business model, the basic concept has been around forever. You basically act as a middle man connecting the service buyer to the service provider. You sell marked-up digital services, then outsource all the work to freelancers for a cheaper price.
How to Start a Drop Servicing Business For Beginners.Do You Need to Be an Expert in the Skill You Are Drop Servicing?.