Like dropshipping, drop servicing is practical, and a lot of people are already doing it successfully. Sometimes, you aren't just skilled enough, but you still want to start a skill-based business. That's why I've created this guide to service arbitrage or drop servicing for beginners like you.
But you still need to learn the skill of marketing and setting up your business online. Don't worry; I'll help you understand everything to start a business from scratch.
What is Drop Servicing & How Does It Work
Drop servicing or service arbitrage is a fulfillment method to help you sell services and outsource them to someone else. This is a new trend in the business world, as it saves you time, money and provides more growth opportunities.
Drop servicing allows you to focus on specific aspects of your company, like digital marketing. You don't have to provide services, and you will do it but with the help of your drop-servicing partner or employee.
Some people also define drop servicing as a method of selling digital products created by someone else. But I beg to differ! Just like in dropshipping, you sell products that are delivered by someone else.
In other words, if you apply the idea of dropshipping to offering services, then it's called drop servicing. Sounds fair? Let's have a few examples to make it even clearer!
Examples Drop Servicing for Beginners
You can do the drop servicing business by offering any service available on the market. That may include:
- Digital marketing
- Content creation
- Graphic designing
- Website development
- Link building
- Guest posts
- Content writing
- Video editing
- Social media management
- Running ads
- Creating ebooks
And the list goes on! You can sell all these services. And outsource them when you get your customers. That's hugely satisfying if you know how to do it correctly. But you may still wonder why people will buy services from you. Let's explore why!
Why People Will Buy from You
A massive list of websites offers freelance services like Upwork, Fiverr, Freelancer, and more. And there are a lot of people who provide the services directly. Then it's fair to wonder why people will buy from your drop servicing business.
And here are the top reasons for that:
- Entrepreneurs and businesses don't want to manage freelancers
- They want the services delivered without having to go into details
- And they don't want to take time in finding the right service providers
For them, it's worth it. Why? It saves a lot of time and energy without a doubt. If you build a reputation for providing the right services professionally, you'll eventually get a lot of clients. Businesses don't want to trust just about anybody.
Got excited to start it right now? Let's do it!
Guide to Drop Servicing for Beginners: How to Get Started (2022)
In this guide to start drop servicing, you may find a lot more steps than just four. But once you are set for the business as a beginner, you're ready to rock and roll. All you need is to market your business and make money online.
Watch this video I've created on my YouTube channel to help you get started:
Or read on to learn the actionable steps in detail here.
Find Your Niche (And Choose Related Services)
It should be your goal to find a niche in which you offer your drop-delivered services. What's a niche? Well, it's an area of interest for you or your company.
In this section, I'm going to introduce you to niche research.
Niche discovery or research may have these steps:
- Identify your niche subject or main topic
- Survey your niche on Google
- Classify your niche keywords
- Evaluate the competition
- And choose your niche
For that, you may want to use H-Supertools. This is how you do it:
- Go Keyword Research Tool
- Type in some words defining your interest
- Place ‘services' after those words
- And click on ‘Search' or press the ‘Enter' button
Now you'll have a list of keywords relevant to your niche. With this tool, you also discover volume, CPC, and ranking difficulty. Based on these metrics, you choose your niche. After that, you'd want to jump on a platform to spread the word about your drop servicing business.
Create Your Website For Drop Servicing for Beginners
Think about the platforms where you can share the content in your niche. What do you think is the best way for a company to advertise its services in this modern age? The answer would be through a website!
Creating a website is easy nowadays. When you're starting, just focus on creating a site that reflects your services well.
This is how you create a website:
- Connect the domain with your hosting
- Install WordPress in the cPanel
- And start creating content in the WordPress dashboard
You can choose any other hosting or domain name provider. For example, get the VPS hosting and install WordPress on Contabo. Also, check out these WordPress tools to increase your site's functionality.
Creating a website is not the only way, though! You can promote services through social media or email marketing as well. Here's how you get started on social media:
- Analyze which social media platform suits your niche
- Create social media pages (Facebook, Instagram, and more)
- Design eye-catchy images and videos on Canva
- Share them on your social accounts
- Keep your content aligned with your services
For email marketing, you'd want to read these detailed posts:
- How to Sell Services with Email Outreach
- Practical Tips & Tricks to Increase Open Rates & CTR
- Set Up Your Email Outreach System
- How to Validate Your Email Addresses With a Tool
And don't forget to have a look at these top email marketing tools to get you started with a bang. Don't get overwhelmed if it's too much information for you. You need to have a humble start, though.
Choose Your Payment Methods
Of course, you can discuss payment methods with your clients over emails and phone calls. But you may want to add payment gateways within your site if you want to automate your business. Ask yourself these questions:
- What will be the pricing of your services?
- What're the limitations of different payment methods?
- How will clients pay you?
Here are a few options to get paid from your clients within your drop servicing site:
Choose as many payment methods as you can so you never lose a client.
Promote Your Drop Servicing Business
So, you have learned the necessary skills, created the site and added the payment methods. So good so far! But now you just sit back and wait to be paid, don't you?
Well, good luck with that! But if you want to grow your service business online, then you need to promote it. So how can you promote your service business?
Create Engaging Content for Your Audience
As mentioned earlier, content marketing is definitely worth giving a go. If you are good at creating content, you could get hired by other companies to develop their content. It can also lead to new opportunities further down the line.
For drop servicing for beginners, social media and QA sites are excellent!
Jump on Social Media, Q&A Sites like Quora and More
After you create content on your site, get social. Share the posts there. And repurpose your content for sites like Quora and SlideShare. Start having conversations with people online about what interests your clients.
A great way of getting noticed is by answering questions on Quora and Sli.de. If you have the right kind of content, people will want to click on your website and use your services or products.
Use Video Marketing: Create Videos on YouTube
Creating videos on YouTube can be expensive or daunting at first, but it is worth it. Video marketing can increase your company's exposure and authority.
By making videos about the industry developments, you prove that you know what you are talking about. And this will make people want to view more of your content, ultimately buying from you.
Run Ads on Social Media and Google
Running ads on social media and Google is way more rewarding than you think. But for that, you need to understand how to properly run ads on a specific platform. Get the certificate to run ads on Google here. Or you can follow my YouTube channel to learn how to do so.
Don't want to pay money at the start? Look at these fantastic options:
Here in this video, I've helped you learn how to increase traffic to your site within the first week:
Have a look at these resources to promote your business:
Too long, didn't read? Let me summarize the entire process for you right now.
FAQs for Drop Servicing or Service Arbitrage (2022)
Drop servicing or service arbitrage is relatively new. That's why there are so many misconceptions about it. So let me answer a few questions about it now.
1/ What is drop servicing?
Drop servicing, aka service arbitrage, is a business model where you act as a middleman between a client who needs a service and a freelancer or agency who can provide that service.
2/ How does drop servicing work?
You find a client who needs service. You then find a freelancer or agency that can provide that service. That freelancer or agency finishes the service, and you send it to your client. And you make money by charging your client more than what you paid to the freelancer or agency.
3/ Is service arbitrage ethical and legal?
This is a common question. And the answer is yes; service arbitrage is ethical and legal. First, you are giving your time to get the clients and ensure the quality of services. Second, you're not doing anything illegal. If you want to show your trust and transparency, you may share your business model with both parties.
4/ What skills are required for drop servicing?
You don't need any specific skills to get started with service arbitrage. However, essential marketing and sales skills will be helpful. And I believe you should also have a better understanding of how the services you offer work.
For example, if your business offers logo designing, you must know what a good logo looks like. And you should know how to write if you provide writing services.
5/ How much money can you make with service arbitrage?
It depends on the services you offer and the price you charge. Generally, service arbitrage businesses have a higher profit margin than most other businesses. So you can make a lot of money with service arbitrage.
For example, if you pay $100 for a logo design and give your freelancer $50. Then you keep $50 in profits. You may earn $5,000 per month if you can serve 100 clients.
Summary: Guide to Drop Servicing for Beginners (2022)
Just like dropshipping, drop servicing has been in the business for quite a time now. And it's the hottest time for you to start your service business online, even if you don't have marketable skills. However, you must know how to market your business.
Here's a summary of how you can start a drop servicing business for beginners:
- Explore different niches and find the one for you
- Create a website and social media pages
- Choose payment methods
- Promote your drop servicing business online
- Hire freelancers if you need them
What do you think about this guide to drop servicing for beginners like you? Let me know if I should add something in the comments below.