5 Proven Secrets Of The Successful Drop Servicing Business Model
8 min read

5 Proven Secrets Of The Successful Drop Servicing Business Model

5 Proven Secrets Of The Successful Drop Servicing Business Model

Did you know the Drop Servicing Business model can make around 70-95% profit margins?

Yes, it is true. This business model is gaining a lot of popularity on the internet, as more and more people start adopting it; as it has been proven to be more successful.

If you are a person who has been exploring ideas on the internet then I am sure you may have heard about the Drop Servicing Business model.

But its popularity is mainly because the Drop Servicing Business model is easy & effortless.

Now that you have been wondering what the heck the Drop Servicing Business model is and will it work for me, let's dive into the main topic.

In this article, you will learn everything about the Drop Servicing business model, plus I'll explain 5  Secrets that can help you to be successful.

What is Drop Servicing?

Drop servicing is a business model where you sell your services to clients, but you don't fulfill it by yourself; rather, you outsource it to others, mainly a freelancer.  

How does Drop Servicing work?

How does Drop Servicing Work?
  • The client gives the project to you.
  • You stay as the middle man between the client and the freelancer.
  • You are responsible to take client requirements and ask your freelancer to complete the project.
  • The freelancer then submits the completed project and you then give it to your client.

It's all about investing your time & money in selling your services at a high price and then finding someone to complete the work at the minimal cost possible.

Whatever difference amount you make is your profit. Now isn't that easy?

Drop Service Ideas:

  1. Web Design & Development
  2. Logo Design
  3. SEO Services
  4. Copy Writing
  5. Business Card Designing
  6. Social Media Marketing
  7. PSD to HTML
  8. Mobile App Development
  9. Letterhead Design
  10. Ecommerce Store

5 secrets of the successful Drop Servicing

Now that you understand what drop servicing is and how it works, let's go to our original topic "5 secrets of the successful Drop Servicing "

Secret #1. Invest in Branding

Invest in Branding

The only initial investment you will make is for branding.

Try to make your business look as professional as possible in this you will differentiate yourself from freelancers.

8 Important Steps to Begin a Successful Brand:

  1. Choose a company name for your business.
  2. Register your company legally (Trade License) we don't want any trouble.
  3. Design a nice logo for your company.
  4. Buy a domain name for your business Ex: yourdomain.com. This will help your business website to be accessible online.
  5. Create a professional website for your company.
  6. Also Make sure your business email is created Ex: info@yourdomain.com. Business email makes you look professional when communicating with clients.
  7. Make a company profile, this can help you show all your services in a good, presentable manner.
  8. Lastly, make a business card or digital vcard to exchange contact details.

Secret #2. Marketing Your Services

Well, marketing your business is extremely important, if you want to make a sale or get a client for your business then you need to invest time in marketing your business.

There are 2 ways of marketing Free Vs Paid.

Drop Servicing - Free Vs Paid Marketing

Free Marketing, as it says its free means there is no investment required here.

How to market your business free?

  1. Create social media accounts. And stay active on s like Instagram, Linkedin, Facebook, TikTok, Pinterest, Etc.
  2. Focus on the LinkedIn platform. When it comes to business, LinkedIn stands out from the rest of the social media platforms. I have made more sales on LinkedIn than any other social media platform.
  3. Cold emailing: This means collecting a bunch of people's company mail addresses from the internet and then starting writing emails about your services. You can use tools like hunter.io to get emails from businesses.
  4. Cold Calling: Just like cold mailing, you can also try calling up businesses to sell your services. Always make sure you speak to the decision-makers of the company so that you can increase your chances of selling.
  5. Door-to-Door Sales: Old but still works like a charm, you need to get off your couch and go out to visit offices in your local areas along with your company flyers to make sales.
  6. Start a blog (SEO) or YouTube channel, this can help you spread your brand across people easily and quickly.

Paid Marketing, here, you may have to invest money to get sales.

Most profitable Paid Marketing Platforms

  1. Google AdWords: One of the old advertising platforms where you pay on a per-click basis. Google Adwords works extremely well since your ads are shown in google search results where people are actively searching for some or other services.
  2. Social Media Advertising: Advertise your services on social media platforms like Facebook, Instagram, Pinterest, TikTok, Etc.
  3. LinkedIn Advertising: Expensive but more effective if you have targeted the right audience, LinkedIn is highly recommended to be considered to sell your services.
  4. Gmail Ads: It's the most underrated platform when it comes to selling any services. I highly recommend this because most of your potential clients may probably use Gmail or Gsuite business mail accounts.
  5. Quora Ads: Quora is a question & answer website where people ask questions and experts answer them. You can target ads to be shown if one of the users asks relevant questions related to your services.
  6. SEO (Search Engine Optimization): SEO means ranking your website on top of Google search results, in this way you can allow traffic (people) to visit your website which can lead to more sales.  SEO is free, but it's very hard for individuals to focus on SEO strategies to rank top on Google So it's better to leave it to experts who can manage your website SEO.

Secret #3. Outsourcing Your Services

Now that you are successful in making your first sale, the next important step in the drop servicing business is to outsource your client's work to a third-party source.

So to do that we need to follow a few guidelines for the successful delivery of the work.

How to outsource your work?

Here are a 10 things to take note of when outsourcing your job:

  1. Analyze your client's requirements thoroughly and choose a highly experienced person for the job.
  2. Make sure your person has 3+ years of experience in the relevant domain.
  3. If your client's work has multiple jobs to be done, you can split the work between different persons, rather than giving it to a single person who is only experienced in a particular domain.
  4. Make sure your person who is handling the job belongs to the same timezone. Otherwise, it may create a huge communication gap.
  5. Before starting any project, ask for some expert pieces of advice; this may be helpful sometimes to save your time and money.
  6. Before you give any work, make sure you ask for their portfolio of all previous work.
  7. Make sure you agree on the timeline & cost before starting your shake hands.
  8. Never pay upfront a full amount; rather pay in phases or on a task basis.
  9. Keep a good & long term relationship with them, this can help to avoid lazy finish of your work and can also help in cost reduction for your future works.
  10. Make use of project management & communication tools to keep track of their progress and timeline easily.
  11. Remember to request samples or basic versions of the work  before completing the entire project; in this way we can make sure both stay on the same page; we don't want to waste time.

How to outsource your work?

  1. Head to some trusted freelancing websites like fiverr.com, freelancer.com, upwork.com, etc.
  2. White-label agencies: These are professional agencies that will complete the work for another agency like yours.
  3. Local Freelancers: I consider this to be the best option as you get to meet freelancers in person and discuss projects besides,  cost-effective service.  LinkedIn is the best platform to find local freelancers.

Secret #4. Delivery of Work

Now that your freelancer or outsourcing company has completed your client's project, it becomes necessary to test it and make sure it's up to the quality standard that your client paid for.

So here are few steps to quality check your completed work -

  1. Please take time to analyze the delivered work and make sure it matches your client's requirements.
  2. If it's a website or app development, then test the entire website or application thoroughly. You can also outsource this to testers. Make sure the project is bug-free before giving it to the client.
  3. Always remember to keep extra buffer days sooner than the promised deadline so that you can effectively test the project and make necessary changes if necessary before delivering the final work.
  4. Pay the amount when you are 100% satisfied with the quality of work that is agreed upon.
  5. Divide your entire project into phases in this way you can test progress more easily rather than waiting for the entire project to be completed and finding it to be all messed up.

Secret #5. Referral System

A referral program is a kind of marketing program, but the reason I didn't include it under marketing is that with a referral you don't work or invest any money but rather pay commission upon successful sale.

You can outsource your sales to certain people who take up the responsibility of promoting your products on their or social media platforms, etc, if they are successful in making you a sale then you pay a certain percentage of commission.

This model is extremely powerful and cost-effective, so you don't pay anything upfront; rather pay only over a successful sale.

So here few ways you can implement this model -

  1. Affiliate Program: You can start your affiliate program; an affiliate program means you give away unique affiliate links to individuals who promote your services on their website and send traffic to the website of your services. You only pay them if someone makes a successful purchase of your services.
  2. Consultant: You can partner with consultants; consultants are people who help you find clients in exchange for a commission.
  3. Influencer Marketing: You can find lots of influencers on social media platforms or YouTube partner with them to sell your services on a commission basis.

Yes, it's 100% legal; there is nothing harm in making a profit by outsourcing your job to a freelancer; most of the big IT companies do the same, outsourcing their jobs to third world countries to make a high profit.

But please make sure you legally register your business before starting a drop servicing business. I wouldn't recommend starting your business illegally, as you may fall into some trouble if your country has some strict business laws.  

If your country has VAT or any other TAX laws, you better follow them to avoid any illegal consequences. Make sure to include it on your invoice.  

Drop Servicing Business Growth

Drop Servicing Business Model Growth Chart of 5 Years
Drop Servicing Business Model Growth Chart of 5 Years (Source: Exploding Topics)

The graph from the exploding topics says it all, you can see drop servicing business has been growing with full force, especially after the pandemic hit the world.

More and more people are moving to online business as traditional businesses have been closed or severely affected due to periodic lockdown happening everywhere, so this is the right opportunity to make your name in this industry.  

Conclusion

Congratulations! You have successfully covered all the necessary steps that are needed to start a successful drop servicing business.

I have explained everything from starting your business to getting clients to outsourcing your projects. I feel this is very much sufficient to start a successful drop servicing business and grow to the next level.

These are the exact strategies that I have been following for the past 10+ years that have proven to be extremely successful in my business.

You don't have to spend a huge amount on buying books about drop servicing; this little piece of the article covers everything that you need to get started.

I wish you good luck, If you find this article useful, please email your thoughts to me. My email is hey[@]azfar.co I can help you answer any of your questions or queries.

Maybe you are interested to check - The 7 Secrets About Millionaires Only A Handful Of People Know.