In today’s post, you’ll be learning a new business model which is “how to start a drop servicing business in the Philippines.
Perhaps this is your first time of coming across the term drop servicing if it is, I doubt you’re going to be reading any material elsewhere again.
Because I’ll try as much as possible to break it down even if you’re a complete newbie with no experience with online businesses in the Philippines.
Starting a drop servicing business is a great way to start making passive income online with less to no investment.
This is a business model that leverages on other people’s work leaving you with less work and making a lot of money.
In this post, you’ll learn what drop servicing is, how it works and how you can get started FAST and make money QUICK.
However, before we go on… let’s browse through the highlight:
- What Is Drop Servicing
- How Does It Work?
- Choosing a Service To Drop Ship
- Finding Your Freelancer
- Create a Website for Your Drop Service business
- Getting Traffics
Now without any further ado let’s get started.
What Is Drop Servicing
Drop servicing (service arbitrage) is a new business model whereby you provide and sell services directly to clients. But you do not provide the services directly yourself.
What you do in situations like this is that you outsource the service to a different freelance and pay them from the money your client pays you.
Once the freelancer finishes the job you then directly send the job to your client as though it was provided by you.
So technically, you’re more like a middle man in this business model connecting buyers and sellers of services together.
Your profit, however, is going to be the difference from the price your clients pay you and how much you pay your freelancer to get the job done for you.
How Does Drop Serving Work in the Philippines?
The idea behind drop servicing is really simple. I’m sure you pretty much understand how it works from its definition.
But for it to work smoothly, you need some certain touch and these include getting out to locate clients that need your services.
Once you have a nice portfolio of clients, you’ll also begin to enjoy client referral and have your business make money on auto-pilot.
So basically, you get a service from a client that wants a perfect job. This could be programming or logo design, social media marketing, etc.
You on the other hand then need to go out and look for the best freelancer that can get the job done at the cheapest price.
And once the job is done, you pass it along to your client and keep your profit on every transaction.
Choosing a Service to Drop Ship
To get started, you’ll need to choose a niche or service you have a basic understanding of how it works then build your brand around it.
The reason you have to pick a niche or service that you know how it works is because you’ll need to do a quality review before you pass along the service to your clients.
Now, if you have no idea about the service you’re selling, how are you going to cross-check or review for quality check?
You won’t, because you don’t know!
But if you have a basic understanding of how it works, you’ll be able to tell right from wrong from what the freelancer has done.
Once you understand that, you can proceed to choose your service niche. Some of the services you can get started with include:
- Lead generation
- YouTube marketing
- Facebook Advertising
- Ebook Design
- Banner Ads
- Google ads
- Social Media Marketing
- LinkedIn Ads
- Content marketing
- Instagram Ads
- Instagram Influencer
- Video marketing
- Business card design
- Search Engine Optimization (SEO)
- WooCommerce Customization
- Plugin Creation
- App Development
- WordPress Development
- Shopify Customization
- Web programming
- SaaS Development
These are just a few of the things you can drop service; there’s quite a lot of them. You could do your own personal research by checking the freelancer website like Fiverr, Upwork, etc.
They have several categories of gigs you can explore and you can basically sell any of the services to your clients.
Finding Your Freelancer
Once you’ve determined the kind of service you want to sell, you’ll need to look for the freelancer that’s going to get the job done for you.
What you’ll need to do here is look for the freelancer and check their service sales page. A good example is this Fiverr gig.
In your own case, you can create something exactly like this but increase the price. You could make your price $150 and keep $130 in profits on every transaction.
Even if you’re going to run adverts you’re still going to make something reasonable out of it.
However, the trick is having more than one freelancer for a particular service. This is because you don’t want to keep your client waiting.
So if one of your freelancers has several queued works already that needs to be done, you can outsource the work to one with less work at hand.
So where can you locate freelancer that can get your job done really quickly? Trust me there are several websites if you simply Google the term “freelancer Website”.
But today, I’m going to list a few of them. They include:
- People Per Hour
- Simply Hired
- And many more.
Like I said, there’s more of them if you do a simple Google search for “freelancer website”. Also, before choosing your freelancer, you’ll need to make sure they are the best in their chosen field.
A quick way to figure this out is by checking the reviews of their previously done work. Go through their reviews archive and read what their clients have written about them.
With this, you’ll be able to discover if they are good at what they do!
Create a Website for Your Drop Service business
Moving forward, now that you’ve decided on your chosen niche and also locate the freelancer that will get the job done for you, the next thing is to create a website.
You need to create a simple one-page website showing the service you’re selling. But first, think of a domain name that’s related to your service.
This is going to give your business a brand and more trust about what you’re doing. For the domain name, you can get it for free using BlueHost.
However, you’ll need to pay for hosting which is usually around $3.95 per month. You don’t have to pay monthly.
A year plan will do and you get a free SSL certificate, free domain name and 30 days money-back guarantee.
Getting Traffics To Your Drop Servicing Business
Now that you have everything in place, you’ll need to get more people visiting your page. The more traffic you have the more your chance of making more money.
The best way to quickly get people to your site is by running ads. You can go for Facebook ads, Google ads or even Instagram ads.
If you don’t have budgets for ads yet, you can start with Facebook groups. Post your services or contact small business websites about your services.
That’s, however, going to take time. If you want customers fast, you might want to run simple ads to the website.
As you can see it is not so difficult is it? Let’s have a quick run-down of everything we’ve discussed earlier to keep it fresh.
The first thing you need to do is pick a service and look for a freelancer to whom you can outsource the service to.
After that, build your Website with WordPress you can get started with a Free Domain name using Bluehost with WordPress pre-installed.
Finally, look for clients and out-source their services to a freelancer that can get the job done while you keep your profit on every service.