What is Drop Servicing?

What is Drop Servicing?

Drop servicing is a business model similar to drop shipping where a business takes orders for a service like logo design, video editing, etc., then uses a third party to complete the order. This model makes it easy to grow a sclable service business with little overhead.

Drop servicing businesses are focused on the marketing and conversion optimization for a service. Since they are not bogged down with spending time actually doing the service it allows them to scale their marketing efforts faster than a traditional agency or service business.

Drop Servicing Ideas

The drop servicing business model can be extremely lucrative, so if you are interested in giving a try here are some common drop servicing ideas:

  1. SEO services
  2. Graphic design
  3. Video editing
  4. Content writing
  5. Social media marketing
  6. Paid Search marketing
  7. Web design

While these are the more commonly drop serviced categories, sky is the limit. You can drop service and type of service that you are able to sub out to a 3rd party. Essentially, think of turning any Fiverr gig into a stand alone business. That's thousands of oppurtunities to grow a profitable business.

Advantages of Drop Servicing

Drop servicing allows you to start a service business with a little overhead and the ability to scale up or down as you take in orders. In a traditional service business you would take on a customer then either do the seervice yourself or higher an employee to complete the project. With drop servicing, you sell the service and forward the project on to a thrid party, usually a freelancer, to complete. While they are working on completing that project you can focus on getting the next customer.

Drop servicing also has one other big upside. Since you are using a third party expert to complete the project it means you don't need to have the skill or really much knowledge about what you are selling. For example, you don't need to know how to edit a video to launch scale a profitable video editing drop service business.

While having at least some knowledge about the process will help, you don't need to be an expert at whatever service you are selling. Just find a trending service, build a website, and start running ads.

Disadvantages of Drop Servicing

While drop servicing has a ton of upside there also some disadvantages. The biggest downside to drop servicing is managing the customer relationship.

Since you are acting as a middleman bewteen the customer and the freelancer its your responsibility to manage feedback, change requests, and requirements. So everytime your customer asks for something you have to relay information to the freelancer. This means going back in forth between the two parties as a messenger. Successful drop servicers can overcome this with customer portals or tools that allow the customer to submit feeback or requests directly to whoever is working on the project (without them knowing you aren't actually doing the service in house).

Keys to a Successful Drop Servicing Business

Ready to start your drop servicing store? Here's some tips that will make or break your new business.