Does making $527 per day running your own drop servicing business sound good to you? Then this article is for you.
I am going to share the steps that you need to go through to pull this off, and to top it off you don’t even need that much money to get started!
What Is Drop Servicing?
Drop servicing is like drop shipping, but instead of selling products, you are selling services. Your business is to connect high-quality freelancers with clients who need their services. For example, you might hire a web designer that you find on Upwork on a per-project basis and then go out and sell web design packages or custom services to clients who require web design.
The difference between what you charge the client and what you have to pay the freelancer is your profit margin. Drop servicing can be very profitable, it is not uncommon to be able to sell a web design package to a client for say $5000 and be able to get a freelancer to be able to carry out the work for just $500, leaving you $4500 in profit.
Because your business is completely internet-based you can communicate with clients and freelancers from all over the world. Demand for many of these types of services is really large and growing, leaving opportunities to build a sizable online service business.
What Service Should I Offer?
The first thing that you need to do is find a service that you are going to sell. The best place to research to find your service is to go to platforms like Fivver.com, Peopleperhour.com, and Upwork.com. On these platforms, you can search for services that are offered by freelancers and delivered online. Once you have picked a service (for example, website design, website development, explainer videos, etc.) you then need to get in touch with a group of service providers to find out how much they charge and to make sure that they can deliver the service to a high standard.
Once you know how much your service is going to cost you, the next step is to research your competitors to find out how much they charge. The easiest way to do this is to visit their websites and check if they list their prices. If you can’t find their prices you can arrange to jump on a call with them or reach out via email to try to find out. Once you know this information you can determine your prices that you are going to charge. For example, you might find out that your competitors charge $5000 for a service. If you only have to pay a freelancer $500 to carry out the work, then even if you charge $2000 ($3000 less than your competitors) you will be making $1500 profit per project that you can sell.
How Does the Delivery Process Work with Drop Servicing?
Once you have made a sale you are then going to give the exact specifications for the project to your freelancer partner so that they can carry out the work required. The best way to get this information is to get the client to fill out a detailed questionnaire that they can use to give you all of the relevant information for the project. You then give this information to the project team to complete the work. Your role is to handle the communication between your client and your freelancer team. Most people when they are starting will do the project management and sales side of the business themselves, but once you are more established even these roles can be outsourced.
How Do You Create A Good Offer?
Make sure that you differentiate yourself from your competitors through price or by other means, and make sure that your offer has urgency and importance around it. By this I mean you make it clear to clients that what you are offering is important for their business and that your offer is so good that they should agree to hire you with urgency. The most tried and true way to do this is to attach a deadline to your offer. For example, you can say that you are offering them a 50% discount on the service and that the offer ends at the end of the week. You can test out lots of different offers to fine-tune it over time.
How Do I Make Sales?
Once you have a good offer to present to clients you need to go out and sign up clients. The best way to get started is to start a cold email campaign. You can research a group of clients to approach and then email them to try and get your offer in front of a decision-maker at that company. Once you are more established you can start using sales methods like paid advertising on linkedIn or Google to try and get your business/ offer in front of decision-makers at companies that require the service that you are offering.
How Can I Make $527 Per Day Using This Model?
You won’t make this amount straight away; it takes hard work and time. In the beginning, I did all of the sales and managed projects and only relied on freelancers for service delivery. Once I started to make money I started to automate the processes within my business piece by piece, using software and people (freelancers).
I began this process by firstly automating project management, then lead generation, and finally my sales process. Each step of the way I was able to make sure that the systems were working and that my agency was constantly providing clients with a high-quality service. When you can do this, you will find that a lot of clients become recurring clients and use your service regularly.
If you want to get started today, check out our website for more information.