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Drop Servicing; What it is & How To Start Drop Servicing Now.

What Drop Servicing Means

Drop servicing refers to the practice of selling a service to customers for a particular price, say $100 then hiring someone else to provide that service to the customer at a lower price, say $50. You then pocket the difference but the client will not know you had outsourced. Drop servicing is also called “service arbitrage” in which you arbitrage the price difference between what your clients are willing to pay and what someone feels they should get paid for the same service. This practice ensures you can scale your business in ways that you cannot manage if you decided to work yourself. For instance, if you decided to write all your blog posts, create content, design the graphics and write all the social media updates, you will limit your income to hours you can work within a day. However, through drop servicing, you get paid by your project and also by the hour. Again, there is no limitation on the number of projects that you can take on if you effectively outsource. Hence, drop servicing is often scalable in such a way that your time is not.  

How Drop Servicing Works

Assume you find a customer in need of writing services for their website and can pay you $1,500 so that you can deliver 10 articles in 10 weeks. When you opt to drop service the job, you will first find a freelance writer willing to do the articles for less than $1,500 that you shall get paid, for example, $1,000. Your work is to get those articles from the writer then deliver them to your client. You have paid out $1,000, got paid $1,500 and your cut is $500 for the trouble.

Examples of Drop Servicing

  1. Creative Agencies. They work for brands by creating content that companies have drop serviced for decades. In essence, creative agencies do not produce content but outsource the job to another entity, most often a production company. For this, the client knows that agency is being outsourced for the production of the asset, but what stands out is the transparency between the agency, client, and the service provider.
  2. Digital Products. It’s possible that those digital products you have purchased online were done by someone for less than what you paid. The “creator” makes money this way, arbitraging prices you are comfortable paying and the price for hiring a freelancer who can create it.
  3. Social Media Management. Most social media companies outsource the creation of content to freelancers then deliver such content as their creation to clients.

Other examples of drop servicing include:

  • Video production.
  • Podcast creation.
  • Graphic design.
  • Audio production.
  • Website design and,
  • Copywriting.

Opportunities in Drop Servicing

  1. YouTube Intros

Many channels on YouTube are struggling to increase viewership. While some people succeed because of their personality, sheer talent, or even luck, others can barely get new subscribers. This is an opportunity for you to step in. Look for those channels with a low subscriber count, browse through their videos and channels. The best practical solution is the use of a Channel Crawler. It allows you to search for YouTube channels through certain criteria such as number of subscribers, number of videos, and keywords among others. If there is no intro for the videos of the channels found or it’s not appealing, just leave them a comment. Through this, there’s a chance that certain creators could be interested in your offer and become your potential first clients.

  • Designing YouTube Thumbnails

YouTube is demanding in terms of the guidelines therein and the way it promotes channels. And from the video descriptions through the title and thumbnail, the algorithm of the website is unpredictable. The focus of YouTube is original content, hence custom-made thumbnails is key. Thousands of channels and videos on YouTube come and go every day. This means a nice custom-made thumbnail can do well for them. Hence, this is an opportunity that can produce good returns because there is no end to YouTube content.

  • Data Entry

This opportunity is reasonable because available freelancers are in plenty who can enter various data. It ranges from filling data in a simple spreadsheet to more complex tasks like math or analytics. You may also consider correcting, rewriting, or copy-pasting the text. If you want to take up this opportunity, finding freelancers is not a big deal, and depending on the freelancer’s skill and level, you choose whom to partner with.

  • Web Scraping

Web scraping is a form of data entry used in marketing. It means the extraction of data from other websites. A drop servicing business using web scraping requires the use of tools such as OctoParse or ParseHub, but choices are many.

  • Data Mining

Data mining is another interesting opportunity if you want to do a drop servicing business. This is the process through which data is collected from websites to look for anomalies, patterns ad trends. It can have various outcomes including an increase in customer experience, prevention of breaches or frauds, and cutting costs, among others. Data mining can be done using various tools such as MonkeyLearn, Orange, IBM SPSS modeler, and SAS enterprise miner.

  • Writing

Writing is another opportunity in drop servicing. There cannot be a good business website with no professionally written component. Most companies aspire for a well-scoring blog whose articles are engaging and have plenty of views. However, all do not succeed. They have to be well-written and also coherent for readers. Should you take up this opportunity, you need to be ready. A good practice is to charge your clients per word. Again, it’s preferable to have a certain level of knowledge in the field to correctly assess work done by a freelancer.

  • Ghostwriting

Ghostwriting is a fine example of a writing opportunity. A ghostwriter refers to a person writing songs but does not perform them, the lyrics are created for singers. Additionally, ghostwriters write plenty of works such as blog posts, articles, books, and many more. It’s applicable to any writing.

Other opportunities for drop servicing include

  • Transcription
  • Graphic design
  • Video creation
  • Social media management

Rubedo also offers one an opportunity to start their drop servicing business as the platform offers different tools that can be resold for an arbitrage. E.g, Warming up SMTP, Managing Email Marketing Campaigns, Lead Generation, and many more. You may want to check it out.

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