Alex TuckerDigitalMarketer

by Alex February 17, 2021 0

How to Start a Drop ServicingBusiness and Make Money 2021

Creating a drop servicing business is one of many ways to make money online. Youprobably knew that, or you wouldn’t be reading this! But did you know that drop servicing isalso called service arbitrage? That’s the fancy term you can use to impress folks at yourhighschool reunion! This article will explain how to start a drop servicing business and makemoney completely on the internet.

While there is no such thing as a “perfect” business model, the drop service model iscertainly a powerful one. It is particularly effective if you want to outsource as much aspossible, because drop servicing is outsourcing by its very nature.This website uses cookies to improve your experience. I'll assume you're ok with that, but you can opt­out if

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Table of Contents [Hide]

What is Drop Servicing vs Dropshipping?1.

What is the Drop Service Business Model?1.1

What Services Can You Resell?1.2

How to Start a Drop Servicing Business2.

How to Hire a Freelancer2.1

How to Find Reseller Service Providers2.2

How to Get Potential Customers and Clients3.

Marketing On Social Media in One Step3.1

Digital Marketing 101 – Start Local3.2

How to Sell Drop Services3.3

Where to Sell Your Digital Assistance3.4

How to Scale a Drop Servicing Business4.

Your Drop Service Business Checklist – Service Arbitrage to Save You

Time

4.1

FAQ (Frequently Asked Questions)5.

What is Drop Servicing vs Dropshipping?You’ve probably heard a lot more about the dropship business model than the drop servicemodel. They’re very similar, but with dropservicing you are reselling services instead of

0you wish. Read MoreACCEPT Reject Cookie settings

goods. I think dropshipping got popular first because most people think of eCommercestores when they think of making money online. But more people are realizing that sellingservices online is often easier and more profitable, so I expect drop servicing to blow up incoming years.

Not sure where to get started? You can buy and resell almost any service you can think ofusing Fiverr! Follow the link to sign up and browse available gigs.

What is the Drop Service Business Model?A drop servicing business is really just a reselling business. As a drop service provider, yourmain job is to find clients to resell services to. This can be a great idea if you’re amazing atclient acquisition or lead generation. But it can also be a good way to start a business as abeginner.

For example, imagine you want to start a digital marketing agency. You could focus oneverything from building your website and getting clients to posting on social media – alsoknown as the “do it all yourself” approach (this is what I did when I started my business. It’sexhausting!).

Or you could focus on just one or two things, like finding and building relationships withgreat clients. Everything else can potentially be outsourced under a drop servicing businessmodel.

What Services Can You Resell?Any service that can be rendered 100% online is a good candidate. Here’s a list of servicesthat are ideal and often resold online (note: you can find all of these services at inexpensiveprices on Fiverr.)

Social Media Marketing

Search Engine Optimization (SEO)

Copywriting

Content Writing

Video and Image Editing

Graphic Design

Video Animation

Most other digital marketing activities

Anything a virtual assistant can do

As you can see, there are a lot of options available. One not mentioned on the list isconsulting – you can be a 100% online consultant in almost any field or industry. It mightseem odd to sell someone else’s consulting services, but there are many affiliate marketerswho build their entire business model around this strategy.

How to Start a Drop Servicing BusinessA cornerstone of the drop servicing model is finding a great service provider whose workyou can resell. There are a number of ways you can do this. You can:

Outsource to a freelancer or freelancers

Hire a skilled employee or team

Form a relationship with a business

Engage the services of an existing reseller

The easiest way is likely to engage an existing reseller agency, simply because they willhave existing processes for everything. However this will give you less control, and youwon’t be able to form a personal relationship with them like you would an ordinary business,a team, or freelancers.

How to Hire a FreelancerThe best option if you’re on a tight budget is probably to go with a freelancer. The only issuewith this is finding great freelancers who are both affordable and skilled. Most people takecompletely the wrong approach to outsourcing, because they get terrible advice. Mostwebsites will tell you to find someone on Upwork or Fiverr, but those marketplaces are aheadache waiting to happen.

Instead I recommend using a service like iWorker to match with a freelancer. If you reallywant to find someone yourself, my favorite platform is OnlineJobs.ph. iWorker is a servicethat manages remote workers and connects them with entrepreneurs. OnlineJobs.ph is afreelance marketplace specifically for workers in the Philippines.

Both of these options make it easy to find a skilled worker who will meet your needs andeven a limited budget. I strongly recommend sampling the services of anyone you intend towork with before you start searching for clients, which is the next step.

How to Find Reseller Service ProvidersWhile freelancers can be inexpensive, the best and easiest way to do service arbitrage is byoutsourcing to a reseller agency or company. A great example of this is SEOresellers. Theyare a reseller website that focuses on SEO, but also provides digital marketing servicesranging from social media management to web design and more.

If you know you’re ready to start a digital marketing arbitrage business, I recommendsigning up for a free trial with SEOresellers. That’ll give you access to their suite of agencytools as well as their pricing details and more.

How to Get Potential Customers andClientsWhile there are many ways to find customers and clients for your business, Facebook is aneasy catch­all answer to this question. Facebook is the biggest social media platform, so ifyour ideal customers exist online, they’re probably on Facebook.

With Facebook there are two main marketing strategies; organic and paid. Organic typicallymeans joining Facebook groups and helping people who might be interested in yourservices. Paid means running Facebook ads, which can be difficult to do well. For moreinformation on both methods, check out my article on marketing strategies.

Marketing On Social Media in One StepA great method of both meeting and servicing clients is social media marketing. If you canprove the effectiveness of social media by marketing your drop servicing business,prospects will be more likely to understand the need for what you provide.

When someone sees your content on social media and thinks “I wish I could post stuff likethat” often enough, it’s only so long before they are asking you for a quote. You might needto get on a call with them to establish the work and pricing, but all you really need to do tomake someone a client is show them step by step why they want to work with you.

Digital Marketing 101 – Start LocalWhether you’re starting an online white label agency or a normal local marketing business,it can make a lot of sense to start by servicing entrepreneurs in your local area. Have youever noticed how many people follow sports teams or celebrities who are from the samearea as them?

Business can work in a similar manner. In my two years of building marketing skill andrunning a business, I’ve found that people in close geographic proximity to me are morelikely to offer opportunities or be open to my suggestions.

How to Sell Drop ServicesThere are three main methods for selling drop services that I recommend. You may end upusing some combination of them most of the time, and that’s great; they’re designed to worktogether.

1. Instant Messenger – Whether you’re DMing on Facebook, Twitter, or elsewhere, directand/or instant messaging is a good way to get to know someone. It also lets them knowthat they’re having a personal conversation with a real person. For extra points,consider sending the occasional voice message rather than just text all the time.Hearing your voice will help give you a unique identity in their mind.

2. Video Audits – If you’re selling a drop service such as SEO, social media management,or YouTube marketing, one great way to hook clients is sending them a video audit oftheir online presence. This can be as short as 4­5 minutes, and it’s basically just achance to showcase your expertise. Important note: Don’t tell them how experiencedyou are, prove it to them by pointing out things they can optimize about their digital realestate.

3. Video Conferencing – The fastest and most direct way to sell something online isusually getting on a video or at least audio call with them. This permits a level ofcommunication and authenticity that other methods cannot compare to. If you’re tryingto sell especially expensive services, getting on a call will often be necessary.

One of my favourite methods of finding clients for my digital marketing services is to startvia email and/or instant messaging. Once I establish contact, I’ll offer to either send them avideo or get on a call. This way they don’t feel like I’m pressuring them into a sales call.

Where to Sell Your Digital AssistanceIn addition to knowing how to make sales, you need a place to keep your drop servicinglistings. Now, realize this; if you have high prices, few people will buy directly of yourwebsite. But you may be able to make sales that way for prices of $500 and under, or evenmore if you have great copywriting.

One of the best platforms I recommend for selling anything online is GrooveFunnels. It is an

alternative to both Shopify and ClickFunnels, providing the ability to create ecommercestores, sales funnels, and much more. You can use GrooveFunnels to build your website,manage your clients, and much more.

How to Scale a Drop Servicing BusinessThe easiest way to scale a service based business is to turn it into a productized service.Productized services are established service packs that usually come with establishedprices. These are good for clients because they know exactly what they’re getting up frontand how much it will cost. They’re good for the businesses because they are inherentlyscalable.

Two great examples of productized businesses are Kimp.io and PandaCopy.com. Kimp isan unlimited graphic design agency, and PandaCopy is an unlimited copywriting service.Both can handle a potentially unlimited amount of work, and both provide bottomlessservices in exchange for a fixed monthly fee.

If you need graphic design for any reason, I strongly recommend checking out Kimp.io. Ifyou need copy or content writing, take a look at PandaCopy.com. Outsourcing parts of yourwork can help you grow your business, whether you use them for content creation orsomething else.

Your Drop Service Business Checklist –Service Arbitrage to Save You Time

Decide on a niche, vertical, or target clientele

Decide what to offer (make a list of examples of services you can sell)

Buy a great domain name for your business (I recommend Google Domains)

Get fast web hosting for your website

Build your site or outsource it to a reseller

Outsource your branding and graphic design

Outsource your content writing and copywriting

Start prospecting for potential clients

Provide value, book calls, make sales

Make sure you build profits into your sales margins

If you need a more complete drop servicing guide, feel free to contact me and let me know!I’m always happy to help out other entrepreneurs, and I’m constantly working on improvingthis article. I hope it’s been helpful to you – consider giving it a share on social media if youknow anyone who might benefit from the content!

FAQ (Frequently Asked Questions)Here are some of the most common questions about service arbitrage / drop servicing,along with my best answers.

Is Drop Servicing Legit?Yes, drop servicing is a legitimate business model. In fact I would say it’s more legit than itspopular cousin, dropshipping.

Is Drop Servicing Legal?Yes, it’s perfectly legal. You should be up front about the fact that you’re reselling services,in my opinion.

Is Drop Servicing Still Profitable in 2021?It certainly is. With more businesses adopting an online model due to COVID­19, servicearbitrage may see significant growth this year and beyond.

About Alex

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Digital and affiliate marketer ­ helping you build the business in your brain.

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