Much like any other up-and-coming route to making cash online, drop servicing can be a lucrative venture for some and some extra money at the end of the month for others. Before exploring how you can benefit from this speedily advancing industry, there are some distinctions to be drawn between dropshipping and drop servicing- while similar, the two aren’t the same.
The What, When, How, Where
Clearing the Confusion
Dropshipping is an online business model whereby you create a website marketing other companies’ products at a markup price- like an all-in-one department store. Similarly, drop-servicing was created as a market after the advent of drop-servicing and here, you tap into a business opportunity by offering services at a markup. Are you still confused? Let’s say John is selling billboard design services on Fiverr; a client of yours requires the service; you charge the client $100 while you pay John $50 and pocket the profit! In drop servicing, if done smartly, you get paid to be the middleman- hence the hype it is getting with entrepreneurs.
The Requirements and the Risks
One of the significant perks of drop-servicing as a venture is that you need 0 capital and 0 investment to begin! A good internet connection, some sleuth-like qualities, and adequate communication skills mean you’re all set to go a long way in the industry. One thing to be wary of- people selling drop-selling guides and courses don’t always tell the truth. This is not an industry that will make you more than five figures a month- don’t get sucked into hosting websites or pay money to affiliates to use their platforms!
Fine-tuning your approach to include services with high demand and yet not many servicemen/freelancers offering it can get you the best profit. Busy entrepreneurs don’t have the time to go digging around websites to select the best-suited service at the lowest market price- here’s where you come in! Select the service carefully, communicate with the serviceman, offer it at a markup, and advertise diligently. Approaching the right people at the right time is the crucial rule of this game.
To Drop Service or to Drop Ship
Risks, Reshipments, Breaking the Bank
There’s no denying that the current influx of users and sellers on the internet -given the drastic effects of Covid-19- offers a viable platform for both drop shipping and drop servicing. However, drop servicing offers a more risk-free arrangement than drop shipping on several fronts. Firstly, the only actual cost associated with drop servicing is the charges Shopify and other sites may charge. The payments to freelancers you hire will be a secondary but significant cost. The money will begin rolling in because little to no investment is needed in kickstarting drop service websites! With drop servicing, there are no limitations to what kind of and how many services you want to offer- the opportunities are limitless.
The first significant issue that arises with the go-between for selling products is quality control and shipment hassles. Services are generally what they seem, but products can be deceptive, and getting caught up in the refunds, delays, reshipments, and exchanges policy may cause you to pay a pretty penny out of pocket to keep customers satisfied. Not to mention that drop shipping is being considered unviable in the long run, given that it’s become highly saturated and competitive. In services, the majority of the risk is the freelancer not fulfilling the specifications of the task- you can always request a revision/refund to mitigate that issue, keep clients happy, and still walk away with a profit. Given the uncertainty around shipments owing to Covid-19 restrictions, offering services is a better, more risk-free venture.
Convinced? Here’s What to Do
Search and Select
Freelancing hubs and marketplaces are the first stop you should make in searching for a service to drop service. There’s an intelligent way to decide- go to Google keywords and enter, say ‘template for brochure design’ and see how many freelancers are offering the service and what the demand looks like. Use the demand/supply equation to figure out whether you should offer the service or not. The right freelancer is also essential- look for people with excellent professional reviews, and make sure to skim through their portfolio first!
Sales Funnels and Professionalism
No matter how smartly chosen your services and how seamlessly they fit the client’s requirements, your website is a sacred marketplace. Your website doesn’t have to be sleek or stellar, but it must have some features such as order-bumps and one-click sells that induce clients to click on what you are offering for a markup. Remember, your client is most likely very busy, and the onus lies on you to connect them to the right person.