What is Drop Servicing?

Drop servicing refers to the process of providing a service to a customer for a fixed price (for example, $100). And, without the client’s knowledge, hiring someone else to deliver the service at a cheaper price ($50) and pocketing the difference.

Service arbitrage is another term for drop servicing. You can arbitrage the price difference between what a customer is willing to pay for a service and what someone is willing to be paid to do it.

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How does Drop Servicing work?

The method of starting a drop service company is very straightforward. You need to create a professional-looking website that sells the service you want people to pay for, and then you need to find someone to do the job.

In today’s world, the drop servicing business model looks something like this:

You create a website that provides marketing services. Then you market and advertise the service to attract customers. After that, you forward the project information to a service provider who will complete the work. Finally, you offer the work to the customer. Drop servicing is all about offering a service for a high price and then finding someone to do the work for a cheaper price while pocketing the difference.

Drop servicing examples

You can Drop Service almost anything. However, you should avoid drop servicing something you don’t completely understand because you might lose money and ruin your drop servicing business.

While you do not need to be an expert on a service, you should have a basic understanding of how it operates.

Selling blog posts and then hiring writers to handle the work for you are good examples of things you can give clients in your drop servicing market.

Great examples of drop servicing includes:

  • Graphic Design
  • Video Production
  • Audio Production
  • Podcast Creation
  • Copywriting
  • Website Design

Drop servicing is a legal business model, and you’d be surprised how eager freelancers are to work with you and allow you to resell their services online! To prevent problems, you must first understand how it works and be picky about the freelancers you work with.

What you need to start drop servicing

To start a drop service company, all you need to do is locate a service that you can charge a premium for, find someone willing to work for less, and then set up a website to advertise it.

You can spend money on Facebook or Google advertising if you want to, but it’s entirely up to you.

With such low entry requirements, all that is needed is commitment and a positive attitude.

Where to find freelancers that do the job for you?

What’s next?

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Frans Kruyswijk

Co-Owner of The Billionaire Blog. I have been an affiliate marketer for the last 3 years. It’s all about the small things in life.

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