Drop servicing, also known as service arbitrage, is a business model where an individual or company sells a service to a client, then outsources the actual work to a third-party service provider. The drop servicer acts as a middleman, handling the client relationship and marking up the price of the service to generate a profit.
Here’s how drop servicing typically works:
Identify a Service: Choose a service to offer, such as graphic design, content writing, web development, SEO, or social media management.
Find Service Providers: Locate reliable freelancers or agencies that can deliver the chosen service. Websites like Fiverr, Upwork, and Freelancer are common places to find such providers.
Create a Platform: Set up a website or use an existing platform to market and sell the service. This platform will be where clients place their orders.
Market the Service: Use various marketing strategies (SEO, social media marketing, paid ads, etc.) to attract clients to your platform.
Client Orders: When a client places an order, you accept the payment and the project details.
Outsource the Work: Forward the project details to the chosen service provider and pay them their fee.
Delivery and Support: Once the service provider completes the work, you review it and deliver it to the client. Handle any revisions or support requests as needed.
The key to successful drop servicing is effective management of client expectations, ensuring high-quality service delivery, and maintaining good relationships with both clients and service providers.