How To Run A Drop Servicing Business – Do’s And Don’ts

Drop servicing business model has been around for several years. It is a business where you offer services to your target audience and outsource the work to a freelancer or agency. You get the idea, right?

So, what is drop servicing?

Previously people used to call it outsourcing their internal or external requirements while ensuring they make profit from every order. Now, aspiring business owners start their own drop servicing business where they act as a service provider, but behind the scenes they are just outsourcing client requirements.

This is not illegal and is definitely a legit business if done properly. The idea is taking from its counterpart drop shipping where the business owner was responsible for marketing and advertising the product(s) they wish to sell. The logistics had to be handled by the supplier or seller who manufactures the product.

Similarly, in a drop servicing business model – you market and promote your offerings on a website to a targeted audience. The ones who are interested place an order and you get it fulfilled through a freelancer or an agency.

Sounds simple and interesting, right?

It can be if you do your due diligence before jumping on the bandwagon. You have a ton of services to offer, but this does not mean you become jack of all trades. Conducting proper research before taking a step forward is crucial if you wish to succeed in this industry.

Do you plan to start your own drop servicing business today? Let’s dive in to learn some do’s and don’ts so you increase your chances of creating a profitable and sustainable business model.

Do’s & Don’ts of Drop Servicing

DO – Make sure your drop service business has an active website and social media accounts, so your clients can easily contact you at the time of need. It’s necessary to establish your online presence on all digital fronts if you do not want to miss any opportunity. Some ‘potential’ clients are more active on social media than search engines. Therefore, it is important for your business to have all platforms available for your client.

DON’T – It’s recommended to not go overboard and keep a VERY high profit margin if you are just beginning. Depending on the service you are providing, try to keep the margins as low as possible to establish your name and brand. You should also determine prices of freelancer(s) or agency(ies) which will allow you to offer a fair price to your customers.

DO – As your business model suggests relying on freelancers and/or agency to fulfill client requirements, you should always have a backup no matter what! This does not mean unreliability or unprofessionalism or a certain team or individual, but in case you start getting more orders – you always have someone to give projects. Plan beforehand to keep your business rolling and growing.

DON’T – Yes, your main responsibilities are to market, advertise, and promote your business offerings. But this does not mean you start spamming your business website everywhere. Either learn SEO or hire an individual/team who helps you get ranked higher on search engines. Spamming your website links will make you look desperate!

DO – Make sure you have a fully functional and responsive website as it acts as a front face in the digital world. Your website should not only be user friendly and easily accessible, but clients should be able to process payments when placing orders online. This gives customers peace of mind that everything is transparent where they can easily maintain a digital log of every step they take. Taking sketchy steps such as asking for payments privately may hamper your client relations.

DON’T – Do not plan to offer services that are irrelevant to you. We understand how aspiring business owners thinks of becoming jack of all traders. But trust us – it does not work. We always recommend excelling in a single niche before expanding out. This does not only establish your name in the market, but potential clients consider you as trustworthy and reliable. Prioritize quality over quantity when you are just beginning. Delivering quality work and results will increase your business than offering too many services.

DO – Plan an effective marketing and advertising plan to get the word out there. Word of mouth marketing works for a shorter period of time. If you are planning to create a six-figure business, you should market and advertise in a way every one gets to know how your business is making a difference.

Final Remarks

When you are just beginning, starting a business may get overwhelming as there are too many things to consider if you wish to be successful. In this blog, we have tried to explain the basic do’s and don’ts of drop servicing business, so you do not lose the plot.

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