3. Drop servicing
Dropshipping and drop servicing are the same business models. But in drop servicing, you are selling services, not products.
For example, you can offer freelance writing services. However, you will not write the articles—you outsource it to somebody.
Once you have received an order, you contact the freelancer, and then you ask him to do the job. He will submit the finished product to you, and then you give it to your consumer.
The profit you make is the difference between what you charged your customer and the price you paid the freelancer. For example, a freelancer charges $15 for a logo; you can sell this service on your website for $25 and have a gross profit of $10.
Here are some examples of drop servicing:
- Graphic arts
- Video editing
- Website building
It is up to you to choose what services you want to offer. The best approach is to combine several services that are related.
For example, you can offer writing services and SEO since both of these are part of the same industry. You can also offer video creation and social media management as both are part of a marketing strategy.
If you ever do drop service, you need to plan the business well. Sometimes, a freelancer may not be able to deliver as expected so you should have a back-up freelancer who can do the job in a short notice.
You should also know something about the service. For example, you cannot offer SEO if you really do not understand what the service is about. You should be able to understand what your client demands and be able to deliver.
Part of your duty is to also choose the best freelancers. You cannot do this unless you invest money. You need to pay several freelancers and check their work and abilities.
You cannot rely on their portfolio. The sad thing about freelancing is that many service providers have fake portfolios. Be careful and use your judgement wisely.
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