How To Start A Drop Servicing Business
Today, i’m going to show you how to start a Drop Servicing business from scratch under $200. So if you are interested in starting and growing a drop servicing business online stay tunned.
Most people are doubtful that it’s possible to start a Drop Servicing business for just $200, and i know you’re thinking, but i need thousands of dollars right, but actually no.
You can set up and run a successful drop servicing business without having to invest too much of your cash and even no cash, and not even that much of your time. So if you’re not familiar with the Drop Servicing business model here’s, a quick explainer.
What Is Drop Servicing?
Drop Servicing involves selling high quality services to businesses. It’s similar to dropshipping, subcontracting or outsourcing. You provide a service and outsource the labor required for that service to freelancers from countries with lower costs of living whatever it may be.
So since you’re, paying a low rate for a high quality service, you’re, able to achieve very high profit margin, 70% even 90%, on your service sales. This gives you a competitive advantage when it comes to marketing your service.
Your role as the business owner is to find clients, or even better, have clients come to you and focus on selling them the service at a price high enough that you make a significant profit, so Drop Servicing enables you to leverage the time, freedom and location given to us by the internet to contact decision makers around the world and sell them services they actually need.
Another plus is Drop Servicing doesn’t require you to pay for expensive office space equipment or hire employees like with conventional business model
So that’s Drop Servicing in a nutshell, now let’s, see how you can start with $200 bucks.
How To Start A Drop Servicing Business (Under $200)
But can you really start with just $200? Yes, absolutely you don’t need much money to start a Drop Service business, but as with every business, the more resources you have in terms of time and money, the faster, easier it is going to be to deploy and quicker is going to be to grow your business, however, if you want to try out drop servicing, it can be done with as little as an email address basic website and an upwork account.
So some of the fundamental things you’ll need for your Drop Servicing business are a website. You can set up a website using WordPress or a service like Shopify for under $50, a domain name won’t, be much more than $20.
With WordPress you need a hosting provider. Bluehost is one of the best online right now and a lot of people recommend it including myself. The best part with Bluehost is you get a free domain and free SSL certificate and you can get it for as low as $4 or $5 per month, billed annually or every 2 or 3 years. Bluehost is very cheap.
Shopify is the best website builder as of right now. A Shopify plan starts at $29 per month and this is the only package you need when you start. Plus you get 14 days free trial. The domain name you have to get it separately.
You can even set it up for free just a Linkedin account instead of a website, then you want a custom email address for your business, use, g, suite or outlook which are both free to use or you can pay six dollars a month for the paid version.
Upwork or Fiver is free to sign up, they do take a commission when you do get sales, so all of these services and products can be set up for $200, all the way down to zero dollars, even for software with a monthly fee like Shopify.
By the time the second payment is due you have made money from your drop servicing business to pay for it out of your profit.
Here is my step by step guide on how to start a drop servicing business.
Pick a Niche
Number one pick a niche in general, but keeping your service simple, the easier it will be to automate the repeatable steps involved with its production, one of the best ways to find the perfect niche is to research what other successful job servicing businesses are offering and then copy pretty much what they’re doing.
Why? Because if they have been in business for a while, you can be sure it’s working for them. Here’s the secret source guys; you don’t need to reinvent the wheel to be successful with Drop Servicing, while any online service can be Drop Serviced, you’ll likely end up either in design and creative fields, writing or sales and marketing.
By far these are what dominates the online service industry today. Here’s some ideas, though, to help you get started.
- Art and Illustration
- Graphic Design
- Blog Writing
- Technical Writing
- Lead Generation
- Social Media Management
- Market Research
- Email Marketing
Once you’ve chosen idea, you need to find freelance partners. This step is critical. You need to find a team of freelancers that will actually carry out the work for each project you secure, unless you’re, going to be doing the work yourself which maybe you want to.
But if you can’t find freelancers that can do the work to a high standard for less than what you can charge, then you don’t have a business. So where do you find these high quality low-cost, freelancers? Well, the top platforms to use on a Drop Servicing businesses are Upwork, Fiverr and Freelancer.
Before you jump in and hire someone, make sure you give them a test task to do like writing a trial blog post and also take the time to review their profile, feedback rating, length of years in the industry and how much they’re charging. From there create a short list of freelancers and pick the top ones.
Make sure that you don’t just go for the cheapest option, though, because this can really blow up in your face. If the quality isn’t that good. It’s better to spend a little bit more and get more talented freelancers to work with.
So it’s, really important that you get this step right, because the client doesn’t know you’re outsourcing and you can’t make excuses if you fail to deliver.
Create Your Offer
So number three is to create your offer. Let’s say you’re, going to offer blog writing services right, so you could then offer three tiers of writing services, gold, silver and bronze each at a different price point, with a different amount of blogs that you’ll write for the clients each month, so what you want to offer here is value, not your time.
Let me explain: don’t make the mistake of thinking about it like you’re selling your time presented as a service that provides them value.
For example, if your service is blog post writing, a gold package could be 10 blog posts per month for $1000 dollars. Silver could be $700-$800 and bronze could be $500-$600.
So these packages provide clear value to the clients because, for example, they won’t have to take on a new employee which can be costly and time consuming for a business to do, especially if it’s, not their core business.
Market Your Business
Your next step, once you’ve, crafted a winning offer is to start marketing your services to potential clients. If you’re, just starting cold email campaigns are by far the most cost effective way to find clients.
You can use Google or Linkedin to find hundreds of your target clients and send them an email with your offer. To save even more time and make this process automated you can use email automation software like GetRespone.
Automated campaigns enable you to send out hundreds of emails a week to your highly targeted clients and what i found most effective is to set up your campaign.
So clients are sent an initial email and then automatic follow-up emails until they reply, around seven days between each email. The aim should then be to get the client to go to your website and book a sales call with you or your sales team, or buy your service directly from your website.
You want to make sure you build your own website and have profiles on top freelancing platforms, where you present your services for clients to see so having a good looking website will make you look way more professional and clients are more likely to trust you when they open up your emails
Using platforms like WordPress or Shopify to build your website for under $200 up front is totally possible. Even if you’re new to websites, it’s all about creating a sales funnel that works for you, even while you sleep.
Automate Your Business And Scale Up
After you’ve got a few projects locked in you want to make your business as efficient as possible. Every part of your business can be automated by software or by humans, your freelancers. Ideally, you want to get to the point where the whole process, from emailing prospective clients to project delivery and getting paid is being automated.
This allows you to build massive scale into your business and to build scale you’ll need to make sure you’ve got a team of freelancers in place to complete client work, so you can focus on developing business relationships with your new and existing clients.
So once you know what you’re doing, it won’t be hard to find more freelancers to increase your capacity as your business scales up and with automation you’ll be able to do this rapidly.
Building scale in your business is about establishing your team and then getting a system in place to deliver value to your clients in a time effective manner. What that means is higher profits for you.
Without a doubt, you can launch a Drop Servicing business for under $200 or even zero dollarsa as i’ve explained. Drop Servicing is simple and really an underrated business model you can take advantage of now.
There are companies out there who need services and you can be the person to provide them with that service for a healthy profit.
The world is going online quicker than ever before and Drop Servicing is one of the quickest ways to start making money online within a very short period, without having to invest a ton of time, learning new skills or investing too much of your own money.
There’s no better time to start a Drop Servicing business and build a life of financial freedom for yourself. Hopefully after this, you’ll take the plunge and start your Drop Servicing business for $200 or less.
Best Drop Servicing Resources
Best website builders:
- Bluehost.com (WordPress)
- Shopify.com (14 days free trial)
Best email marketing software:
- GetResponse.com (30 days free trial)
Best freelancers websites: