How To Start A Free Drop Servicing Business
Are you looking for a way to make some extra money? Or maybe you’re looking for a full-time business that you can run from home? If so, consider starting a drop-servicing business.
A drop servicing business is a professional service you provide to clients, delivered remotely (usually online). It’s a business model growing in popularity due to the flexibility and convenience it offers both businesses and service providers.
The drop-servicing business model has several advantages. It’s a great way to start a business with very little investment, low risk, and relatively easy to create. Plus, if you choose the right niche and target market, you can quickly build a reputation as an expert in your field.
In this article, we’re going to show you how to start an accessible drop-servicing business. We’ll also provide tips on getting started with a free and paid drop-servicing business.
What Is Drop Servicing?
The drop-serving model, called white labeling or service arbitrage, involves a company selling services to clients and hiring less costly freelancers or agencies to complete them. In drop-shipping, the company acts as the point of contact between its clients and the freelancers and agencies who complete the work.
For example, a drop-servicing company specializing in social media marketing may charge its clients $2,000 per month for its services. It would then sub-contract the work to a social media agency for $500 per month, keeping the $1,500 difference as profit.
Drop servicers may keep this secret or let their clients know there is a team they manage.
How Does Drop Servicing Work?
It is extremely easy to start a drop service business. To sell the services, you’re offering. You’ll need to create a nice-looking website and find someone to manage it.
Modern drop-serving businesses often work as follows:
- The website you design offers marketing services & partnership services (white label services)
- To get clients, you then market and advertise your service
- A service provider will complete the project after you have given them the project details
- As the last step, you deliver the completed work to the client
Selling a service for a high price and finding someone to handle it for a low cost is an excellent way to make money.
What Can You Drop From Service?
In theory, you could drop any service, but some services are more commonly drop-serviced than others. Here are a few examples:
- Website design
- Blog post writing
- Virtual assistant services
- Lead Generation
- Search Engine Optimization
- Website speed services
- Pinterest account management
- Creating and editing videos
- Link building and guest posting
- Graphic design
- Social media management (Facebook, Instagram, Twitter, TikTok, etc.)
How to start a drop servicing business
Drop servicing is a relatively new industry, but it’s growing fast. With an ever-increasing number of drop shipments arriving at their destination, businesses must ensure that their customers get their packages safely and efficiently. Drop services are a way to help companies to provide this service while they focus on other parts of their business. In addition to starting your own business, it can also serve as an integral part of your current job.
You’ll need a few things when you start with this kind of service. Before getting started with drop servicing, let’s look at what you need to do:
Find A Niche
The first step towards starting a drop-servicing business is to choose your niche. Pick a service you’re passionate about and feel confident you can market and sell. There are several options for choosing the niche.
The best way to do this is by researching other businesses in your industry, seeing what they offer, and seeing what makes them successful. Once you know what makes other companies successful, you can apply their methods to your own company. This way, people across your site will know precisely what they get when they buy your product or service.
Consider these questions if you aren’t immediately drawn to a drop service niche:
- Is there any area in which I have experience and knowledge?
- What idea would be most interesting to learn if that is not the case?
- Is it easier to build and execute these ideas?
- Is there a market need or demand for the following ideas?
- What are the best ideas that will increase profits for my company?
Find Your Team Of Service Providers:
The team you build will ultimately make or break your business. You must carefully consider each member’s skill set, cost, availability, and attitude.
Remember, the whole point of a drop service is to make your customers’ lives easier. The best solution is to team up with service providers who will be up for the job and who you can rely on to do the job right.
Here are a few tips on building an all-star drop service team:
- Look for experts in their field. To create an effective team, you need experienced members with a track record of quality service delivery.
- Don’t scrimp on quality. In many cases, it’s worth paying a bit more for a service provider you know will do an outstanding job.
- Choose providers who are a good fit for your brand. It includes those who share your values and who you feel confident will represent your brand well.
- Consider each provider’s cost. Maintaining quality can be done without choosing the cheapest or most expensive option.
- Create a system for tracking providers’ performance. It will help you identify any issues early on and ensure that your team consistently provides high-quality services.
Create Your Brand Into Action:
The next step is building your company based on your game plan and team! The online presence you have will help you attract online clients.
While creating and managing a social media profile should be a priority, your website is your most important element.
You can choose from several website builders, such as Wix, Shopify, WordPress, and Squarespace. Many companies offer free trials if you want to ensure you are comfortable with the company before making a financial commitment.
Branding materials and your website should include the following elements:
- It will help if you reflect your brand’s tone and personality in your logo
- Why do you stand out from your competitors, why did you make a great choice, and what your brand means to you
- You can list your prices or leave that part for sales calls (a summary of the services you provide)
- A website builder that supports online payments may also be helpful if you plan to do e-commerce
Using Marketing To Attract Customers
Marketing is how you’ll attract and keep customers interested in your business. You can build your company’s reputation, gain new clients, and retain existing ones. You can use several marketing channels to reach your target market, including social media, email, and paid advertising.
- Using social media to engage your audience is a great way to reach potential and existing clients. Your audience will also be able to trust you due to it.
- Email is a personal way to reach out to your target market and introduce them to your brand. In addition to newsletters, announcements, and special offers, you can send out email newsletters.
- Paid advertising can reach a larger audience with your marketing message. You can use paid advertising on social media, search engines, and websites.
- Sales and lead generation: After identifying potential clients, try to sell them your services!
Getting Your First Sale
Your first sale is said to be the best feeling in the world. Some people find it easy, while others find the task challenging. No matter how it works out, the name of the game is to stay dedicated and don’t give up.
Your interaction with potential clients will teach you what to do and what not to do.
Be attentive to the feedback these leads and clients give you. Do you charge too much for your products? Is there something that everyone expects that you’re missing? Is your competitor’s reputation strong enough for you to compete?
You can answer some of these questions in customer surveys and client interviews. These may help you find new strategies to improve customer acquisition.
What Cost Do I Need To Start A Dropshipping Business?
As a dropshipper, you are not required to pay any upfront costs for your products. Online businesses require a certain amount of investment but are relatively inexpensive. You’ll need to pay for the following startup costs and maintenance costs when you dropship:
Ecommerce website costs
Dropshipping e-commerce sites can be set up very inexpensively if you have good web development skills or are professionally built by a web developer for thousands of dollars. You can also consider Shopify, Squarespace, or other e-commerce platforms.
Finding dropshipping suppliers costs
If you want to sell products on your website, you’ll need to work with dropshipping suppliers. You’ll usually pay a one-time or annual fee for the top dropshipping supplier directories. i.e., the fee for Worldwide Brands is $299, but you can also make a down payment of $99 followed by two monthly payments of $110.
LLC formation costs
LLC formation costs vary according to where your business is organized (usually where you live). Fees for creating an LLC vary according to state law. For example, The fee for forming an LLC in California is $70, and its annual tax is $800. The legal entity formation fee in Texas is $300. In Florida, establishing a new LLC costs $125.
Free & Paid Methods For Distributing Your Business
- Service arbitrage (Upwork and Fiverr) – Publishing your profile on Upwork and finding a freelancer on Fiverr ( less expensive freelancers to hire).
- Facebook groups, Instagram followers – publishing your offers for FREE.
- Cold calls/emails – Collecting targeted company’s details, including name and email, using tools such as hunter, Appolo, etc.
- SEO Blog
- Viral Videos for Youtube, Tiktok, Instagram, and Facebook.
- Referrals & affiliate programs like Fiverr, udemy, etc
- Publishing interesting content & guides on press releases.
In Godaddy auctions, I purchased the aged domain for $25. When it comes to new domains, you should use Namecheap. I like old domains and backlinks that already exist for SEO purposes.
The cost of registering a domain can be as low as $8.
On ThemeForest, I paid $59 for a premium WordPress theme. A deal on ThemeForest now lets you buy a new WordPress theme for as little as $19.
When I first started, I used HostGator, then switched to BlueHost. Additionally, you can use a hosting service like DreamHost. Your host will charge you $10 or more per month, depending on your choice.
With WordPress with hosting, you get more control, are less limited, and have an open-source platform. Other more expensive options include ClickFunnels, Kajabi, etc.
In addition to the WordPress theme’s built-in plugins, I used only free plugins. You can enhance your website by using premium plugins or software. Unlike Shopify, you can download an app for each feature. For marketing, cold emails, cold calls, and social media messages are free. If you are working with clients, ask them for referrals.
You should consider Google ads/Instagram & retargeting on Facebook/Instagram if your marketing budget exceeds $1000 per month. An expert freelancer can manage your ads, or you can do it yourself. A buyer on Google intends to buy, whereas a buyer on Facebook has an impulse to purchase.
Google Sheets can be used as a free CRM (Customer Relationship Management) tool, then upgraded to something more sophisticated like Pipedrive.
What are the costs of starting a Drop Servicing company using WordPress with hosting?
- A new or aged domain costs $8 or more.
- A monthly hosting fee of at least $10
- WordPress premium themes cost $19 or more.
Hiring a digital marketing firm or a freelancer is recommended if you start a business – $500 and up.
- Press release – depends
- Tiktok, YouTUBE, and other viral videos
- Publishing Guides
- It’s FREE to use Google Sheets for CRM.
- You can collect payments through PayPal Invoicing or Stripe with free invoicing software.
- Also, if you can, get a business mentor or coach who is familiar with digital services in addition to the drop service guides.
** TIPS: In the early stages of learning WordPress, hire a WordPress developer to build a site, host it, and take care of it for you.
- Additionally, you can use Wix or canvas templates.
- You should create a WordPress site if it’s not your first one **
In conclusion, starting a free drop-servicing business is a great way to make money online. You can provide a valuable service to businesses and individuals by dropshipping products. One potential way to start your own business is to offer drop servicing. It involves performing a service for a customer and then charging them a fee for the work. You can start a free drop servicing business by advertising your services online or in local classifieds. You must provide quality work to build a good reputation and attract customers.