Here is how to get started with a Drop Servicing Business

We all want to launch and establish our own businesses, but with so much competition in the market, you might which product or service you need to offer. Picking a product or service and betting all your horses on it could be intimidating, which is why the best solution is to become a middleman. If that sounds familiar, then you are right; drop servicing is a widely recognized business model that earns the company commissions by taking orders and outsourcing them to other contractors/freelancers. Come to think of it, Up work, a renowned freelance portal on the internet that earns millions of dollars using the drop servicing model. In today’s guide, we will explain how drop servicing works and offer essential tips to get you started.

How does Drop Servicing and its business model?

Drop Servicing is an action plan where you order a customer who needs a service and charge them a decent amount, while collaborating with a freelancer to get the actual work done, without breaking a sweat. For example, you find a client who needs a customer to develop a website; you charge the client $800 for completing a project, while you outsource it to freelancers available on websites such as Upwork, Freelancer, etc. for $500. Therefore, you end up getting paid a $300 commission. 

In addition, drop servicing is probably the most profitable business, which emerged from the drop shipping business model in which you deliver products. The main difference between Drop shipping and Drop Servicing is that you exchange physical products in Drop shipping, but you trade in a service in Drop Service.

Top Drop Servicing business ideas

Since you now know what drop servicing is and how it works, let us help you with a few ideas to launch the business:

Content Writing

Content marketing is probably the most ideal way to promote any business. Similarly, many organizations these days need to promote their business online, so they rely on content marketing to promote their business. In content advertising and marketing, you can offer your clients blog posts writing or other SEO optimized content.

Website Development

One of the most profitable online businesses these days is website development. With the onset of Covid-19 and the shift of businesses towards digital media, a massive population of corporate entities is adapting ecommerce as the preferred business mode. Therefore, the need to developing business websites is increasing day by day. Due to mass availability of website developers, you can find competent developers for a fraction of the cost you would charge your clients, offering a lucrative incentive in the form of commissions.

Graphic Designing

Graphic Designing is yet another profitable service that you can offer your clients, while outsourcing the work to other freelancers for a lower fee. In graphic design, you can offer a wide range of services, such as the designing of posts on social media, banner design, logo design, brochure design, etc.

How to get started

Choose a Service

The first thing you need is to select a service you can offer your clients. When it comes to choosing a service, do not simply choose based on profit margins or random recommendations. You need to pick a service that you are familiar with, and understand how to execute it. In drop servicing, even if you do not actually do the task, you need some knowledge about it to find suitable freelancers. Without finding the right people to complete the task, you are likely to lose valuable clients and business. Similarly, if you understand the service, you can convince your clients better, to obtain the project, as the client would have more assurance if you understand the scope of work. 

Sales Funneling 

The sales funnel shows you how to attract customers for your business. When you have chosen which service you will offer your clients you need to determine how and where to get clients for your business, which includes advertising for online or physical business venues.


The last thing you need to do to start a drop servicing business is choosing where to outsource your work. For example, suppose you need to provide services for web development, then you would need to acquire reliable developers via freelancing portals such as Fiverr or Upwork. You can also transfer your work to another person if you know someone.

Essential Planning and Data

One of the most important aspects of planning when it comes to drop servicing is to gather all the necessary data for your entrepreneur journey. We live in the age of information, with access to tons of knowledge and data. Therefore, learn all you can about drop servicing including, key markets, major players, their tactics, and potential hazards or obstacles in the industry to ensure you have realistic goals and expectations.

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