Drop Servicing Term or Meaning

The correct term is "Drop Servicing" (also known as "Service Arbitrage"). This business model is similar to dropshipping, but instead of selling physical products, you sell services. In other words, Drop Servicing is about offering a service to a customer for a certain price, and then outsourcing that service to a third party for a lower cost. The difference between what you charge the customer and what you pay the provider is your profit.


How the Drop Servicing model works:

You create an online store where you offer services, such as graphic design, writing, social media management, web development, digital marketing, among others.
You promote those services in your store as if you or your team were the ones doing the work, with competitive but profitable prices.
You receive an order or request from a customer in your online store.
You outsource the service to a trusted provider (freelancers or specialized agencies) for a lower price than what you charged the customer.
The provider performs the service, and you deliver it to the end customer. The customer only interacts with you, unaware that someone else is doing the work.
You get the difference between the price you charged the customer and the provider's cost.

Practical example of Drop Servicing:

Let's say you have an online store where you offer logo design services for $100. A client hires you, and you outsource the work to a freelance designer for $50. The freelancer designs the logo, sends it to you, and you deliver it to the client. The $50 difference is your profit.

Common Drop Servicing Services:

Graphic design (logos, banners, promotional material)
Writing (blogs, articles, product descriptions)
SEO and digital marketing
Web development and web page design
Video editing
Social media management
Virtual assistance

Benefits of Drop Servicing:

Low start-up costs: You don't need to be an expert in the services you offer or hire a team on staff. You just need to find good suppliers.
Scalability: You can easily scale the business if you find an effective workflow between your clients and suppliers.
Variety of services: You can sell multiple types of services in different areas without having to perform any of them yourself.
Price control: You decide how much to charge clients, allowing you to control your profit margin.
Flexibility: You can operate from anywhere and expand your service catalog without limit.


How to launch a Drop Servicing online store?

Choose the services to offer: Research which services are in high demand and that you can get good suppliers for.
Create an online store: You can use platforms like OpenCart to create your store, where you promote the services.
Find reliable suppliers: Look for freelancers on platforms like Fiverr, Upwork, Freelancer, or even agencies that offer attractive rates.
Set your price: Make sure you have an attractive profit margin, considering both the supplier's costs and other expenses (advertising, commissions).
Promote your services: Use digital marketing campaigns, social media ads, SEO, and content marketing to attract customers.
Manage orders efficiently: Establish clear processes for receiving orders, outsourcing the service, and delivery to the end customer.