5 Ways to Start a Drop Servicing Business

[Suba]

In this thread, I will discuss the issue of a business idea called Drop servicing or also known as Service Arbitrage.
What's Drop Servicing?
The drop servicing business is a service sales model, but at the time of execution, the service provider is another party who has previously worked with the drop servicing business owner. So the drop servicing business owner only acts as an intermediary where he will profit from the price difference. So it's different from drop shipping which emphasizes marketing and sales of goods or products not services. In general, this drop servicing business offers digital services such as graphic design, logo design, website creation and design, copywriting, video editing and creator, voice over, content creator, etc. How Drop Servicing works The owner opens a drop servicing business (site), looks for experienced freelancers according to their expertise, makes contracts and sets the price for the services to be sold. set a higher selling price of about 30% to 40% of the purchase price, then promote it to immediately get customers or clients. If the client agrees with the price and services that will be obtained, then the drop servicing business owner can be handed over to freelancers according to their expertise.

Pros: Drop Servicing: no need to hire experts, easy and low risk of loss,
Cons: Clients are often dissatisfied with the quality of service obtained. Freelancers are not punctual in completing work. more practical, no need to hire permanent employees, and lose clients if the work is overloaded?.

Here are 5 ways to start a drop servicing business:
1. Do research, to determine the target market, the availability of freelancers, the types of services to be sold and determine the purchase price. Don't forget to make a well-organized price list of services for potential clients.
2. Looking for Freelancers who will work on orders, make contracts and make standard operating procedures.
3. Create detailed Quality Control Standards.
4. Marketing, use facebook ads, Google ads and other social media.
5. Create branding, so that your business will be bigger and more famous.

 

[Mika]

Drop servicing is you take orders from clients, and hire a freelancer to do the job. You charge a higher price to the client and pay a lower price to the freelancer, and the difference in the price is your profit. The best thing is you make money without actually working, you make money without having any skills. You don't have to become a programmer to deliver coding-related work, you can simply take orders and hire a freelancer with coding skills. Sounds really interesting, right? Well, it is not easy. First of all, you need to prove why people should hire you. You need to have enough reputation as a service provider before someone will trust you with the work. You can grow your reputation only when you have actually worked. You can run ads for your services, but n body is going to hire you just because of your ad, before they hire you they will want to see your profile on the freelance marketplace or check your portfolio website.

 

[Suba]

@Mika Thanks for your comment sis, and I really appreciate your opinion, Becoming a Drop Servicing Business means we are intermediaries, Maybe you are right if starting Drop servicing is difficult for people who are not competent in their field. From the many drop servicers that I know they are experts in their fields, for example, he graduated from computer information technology, who opened a web designer service, then he was flooded with orders (overloaded jobs) and I talked about it in my thread, because he was afraid of losing customers, he looked for freelancers especially among students majoring in computer engineering at a low cost. Then he can open other business fields such as making logos, video editing, voice over, etc. So Drop servcing can be applied to any service field and of course you have to be an expert in the field to get a reputation and order.