Is Drop Servicing Legit?

Drop servicing is swiftly becoming one of the most popular ways to make money online. Therefore there is much backlash about how effective it is as a business concept. This situation is understandable. People are questioning if drop servicing is worthwhile, profitable, and, most crucially, long-term. Drop servicing: Is it a rip-off? This article discusses the legality of drop servicing.

Before finding the legal conditions of this business concept, it is good to get to know about it. So,

What is drop servicing?

Drop servicing refers to the process of selling a service to a customer for a set payment. Then, without the client’s knowledge, hiring someone else to provide the service for a lower price and pocketing the difference.

Service arbitrage is another term for drop servicing. You can arbitrage the price gap between what a customer is willing to pay for a service and what someone is ready to be paid to execute it.

Mechanism of drop servicing

Let’s say you come across a client who needs a particular service from you. They are willing to pay an amount (say $1,500) for the service you delivered over the next ten weeks. If you decide to drop this service, the first thing you’ll need to do is find a suitable service provider for this task who will do the job for less than $1,500 (say $1,000). Then the service provider will return the finished task outputs to you, and you deliver them to the client.

You have given $1,000, received $1,500, and kept $500 as the profit for your troubles.

What can you drop service?

There are various areas of drop servicing. Some of them are creative agencies, digital products, social media management, graphic design, audio & video production, podcast creation, copywriting, and website design.

Negative impacts of drop servicing

Though it is a profitable business for the drop servicing owner, there are still some negative impacts on its customers.

  • Quality control

The lack of quality control is the most evident disadvantage of drop servicing. Because the service owner is not providing the digital service by himself, he does not have complete control over its quality.

If the service owner outsources to the wrong provider, he may find himself spending much time repairing other people’s work. It sucks into your profit margin as well as your time.

To overcome this problem, the service owner should make sure he has a pool of vetted, qualified freelancers that he can rely on. He also can make an effort to cultivate connections with excellent freelancers so that he can rely on them to deliver when a deadline approaches.

  • Ambiguity in morality

If the client is unaware that the service owner is drop servicing service, there may be a moral concern. It is morally questionable if the clients believe that the service owner is handling the service by himself and does not tell them that he is outsourcing the task.

It is not a long-term strategy for the service owner’s company. If the owner is going to offer a drop service, he should clarify what he will be doing. Inform the client that he oversees a team of qualified freelancers and is solely responsible for all deliverables add more moral values to the service.

You have a brief idea about drop servicing and its positive and negative impacts. Now it is time to find out about the legality of this trending online business!

Is drop servicing legit? Raise the question in your mind again.

The answer is: Drop servicing is a perfectly legal business concept and definitely is not a cheap knock. It is one of the oldest business models worldwide, and you would be surprised how eager freelancers are to work with you and allow you to resell their services online!  To avoid problems, you must first grasp how it works and be selective about the freelancers you work with. With that, drop servicing enables you to give high-quality services to several clients, keep them satisfied, assist them in growing their businesses, and assemble a committed staff to offer those services.

Though drop servicing is legal, you should know what you are doing and how it works if you want to start a drop servicing.

You will have a hard time convincing your clients to buy from you if you do not understand how the service works or what is going on. Thousands upon thousands of freelancers advertise their services on the internet. You must make an attractive offer to your potential consumers or visitors to your website that they cannot refuse! Now, from the standpoint of a freelancer, additional clients and business are unquestionably on the horizon. No one can say no to more money and business! As a result, they would be delighted to do business with you and allow you to resell their services online; after all, they are getting paid! You should tell them more about yourself and your business if you want to take it a step further and create a good relationship with your freelancers. You might even get a discount if you buy in quantity.

Even though you are in a pure mind to drop your service at your best for your customers, with the help of the relationships you are having with your skillful freelancers, it is still a bit tricky to gain the customers’ trust towards your online business. Here are a few suggestions to help you stay professional and legit in the eyes of your customers:

  • Never make a promise on what you cannot provide and deliver! Know what your third-party freelancer will provide exactly as a result and make it available to your customers!
  • Avoid falling into traps and never try to deceive your consumers! Building trust and honesty should be your goal!
  • Pick your freelancers carefully since they can either be the reason for your business’s future or a complete recipe for disaster!
  • Do not count on a single freelancer to do the task for you. Freelancers are usually capable of juggling many assignments at once, and things would slip through their fingers!

Drop servicing is a term that has existed for much longer than the act itself. But now that it has a name, and it expects to become more popular.

In summary, drop servicing is scalable, profitable, simple to implement, and most importantly, legitimate. So if anyone is interested can begin right now.

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