How To Start a Profitable Drop Servicing Business?

You must have heard of drop servicing business idea and are now enticed to explore it more! Well, it is definitely intriguing and has great potential. 

But there are still some people who are not aware of the drop servicing business model.

So, what is drop servicing?

It is primarily a business model in which you offer different services to a client and outsource the job to someone else to get the final deliverables. Also known as ‘service arbitrage,’ it is a fancy jargon for reselling.

In drop servicing, you serve as a middleman who markets and sells any service to your target audience. Behind the scenes, your service provider or vendor is responsible to complete the project or manage deliverables.

Now that you understand the basics of the business model, let’s have a look at how you can start a profitable drop servicing business.

Tips to Start a Profitable Drop Servicing Business

In the past few years, drop servicing business model has gained momentum and more people are exploring this avenue. If you are one of them but not sure where to start, read our brief guide.

You can build a profitable drop servicing business in five simple steps. But this should work hand in hand with your patience, resilience, hard work, and determination.

  • Select a Service

The first and foremost step is to choose a service you wish to drop ship. You can select ONLY one or multiple services to begin with.

However, it is recommended to not outsmart yourself and become jack of all trades if you are just beginning.

The best way to start, and then gradually grow and expand, is to pick a service or niche and then become a trusted and reputable service provider. But make sure that you understand the basics of the service you are planning to drop ship (more on this in the next point).

It’s best to pick a service that is less competitive, so you can easily develop your authority and build your brand. Some of the examples of services you can drop ship include web design & development, graphics design, content & copywriting, and more.

  • Find a Service Provider

Once you have picked a service you are going to offer to your target audience, it’s time to pick a service provider who would fulfill orders on your behalf.

It is important that you have the basic understanding of the service you intend to sell at the back of your mind. In case you do not have basic understanding, you will not be able determine if your chosen service provider is the right choice. 

Depending on your type of work and budget, you can either opt for an experienced freelancer or agency. Look at their portfolio, response time, and testimonials to make an informed decision.

  • Design a Website

As a drop servicing business, your main responsibilities are to market and promote the services you plan to offer to your audience. To achieve this, it is essential to have a website.

In today’s digital age, website is the front face of your business in an online world. Furthermore, it also helps build your reputation and brand if you have a good looking and functioning website.

  • Promote Your Website

Now, you have come to the point where you start advertising and marketing your website to your intended customers.

The goal is to pull maximum customers to your website, so you can make a sale and start earning through drop service business model. There are different ways to promote your website including SEO, social media marketing, email marketing, Google Ads, and more.

  • Order Fulfillment

Once a client places an order on your website, it’s time to deliver the project quickly and efficiently. By now, you must have chosen a reliable and trustworthy freelancer or agency who would be responsible for completing all your projects.

Delegate the task to them and keep asking for regular updates, so you are on track with delivery timelines.

It is important to understand that (at this point) you are working as a business. Therefore, it is your responsibility to deliver the final product on time and as per the requirements.


Drop servicing business model has gained immense momentum in the past few years. People believe it has the same potential as drop shipping, and so far, it is true to some extent. You can build a successful and profitable drop servicing business if you put your heart and soul into it.

All you have to do is pick the right service and service provider – these are the deciding factors of your business. A good service combined with a professional and reliable service provider will take you to newer horizons of success.

Quick Access