Nowadays, you can create a business using anything. Believe it or not, you can even sell services without actually doing any work. Hard to imagine, is it not?
Such a business is called drop servicing. It runs by using third parties to do all the work for you without telling your client and them not even knowing a thing.
Drop servicing has attracted many people, but the question of whether it’s legal or not gets wondered by many. If you happen to search online, “is drop servicing legal?” You will get more than 30 million search results.
Nonetheless, it should not put you off such a good opportunity. You can consider what it is to be an ethical drop servicer and build a thriving and respectable brand in the process.
This service is similar to the services of an online recruiter. In this article, we review the compare both services. Moreover, we look at how you can start a professional drop servicing business.
What Is Drop Servicing?
Many might be new to drop services and have no idea what it is.
It is the action of selling and providing services where you or your staff does not do the work. Confused?
Let us say you tell your customer you can design a website for them. You will hire freelancers without telling your client and make them do the work. The only way to communicate with the client or with the freelancer would be through your or your team members.
In simpler words, you get a job for yourself and outsource it to someone else, but keep the client believing that you did all the work.
Not to confuse it with Dropshipping
Drop servicing and drop shipping sound the same but are not similar things. Let us know why drop-servicing and drop shipping often get thought of as the same thing.
Dropshipping requires you to have marketers’ skills. Your search for a product with a specific niche that is popular with a target crowd. Then, you market the product on various eCommerce sites and use various digital marketing methods and platforms.
Once an order comes in, you do nothing. Your drop shipper will package and get it posted. In dropshipping, your manage relationships with customers, drop-shippers, and suppliers. You do not have to manufacture, pack or post the product to your customer.
Drop servicing also does not require you to produce or deliver a service. In drop servicing, you hire a freelancer to deliver a service you sold and agreed to provide to your client. The main skills as a drop servicing provider are your soft skills.
A freelancer might not have such soft skills. They might be good at other things like:
- Software development
- Digital Marketing
- Website development
- SEO
- Graphic design
- Content marketing
- Content writer
- Copywriting
- Outreach
- Tutoring
- Lead generation
- SMM
- And many other services.
Freelancers provide many services in various areas, getting the attention of drop services providers.
These services can get employed anywhere, making a gap that drop servicing providers saw and filled.
In simple words, Drop servicing is a complicated term for freelancing recruitment.
Drop Servicing Vs Freelancer Recruitment
The recruitment services are no secret. Normally businesses pay for end-to-end services, resulting in freelancers or contractors completing their tasks.
A recruitment company pays freelancers and sends the business an invoice for the freelancing services done. It works and operated directly with freelancers; businesses know that.
Drop servicing keeps the customers in the dark about who is actually getting the tasks done.
In other words, the clients do not have any point of contact with the freelancer, and clients do not know that the task is getting outsourced to a freelancer. The businesses paying for the job to get done have no direct contact with the ones getting it done.
Why Drop Servicing Business?
The individuals and salespeople who want a job where they have a lot of freedom, working in an unregulated industry and operating their business the way they want, will find drop servicing alluring.
Communication and Control
All the communication with the client and freelancer gets managed by the drops servicing providers. There is no point within the agreed time when the freelancer and the client will communicate with one another. The drop servicing provider has the whole power and control.
Price Flexibility
There is huge flexibility in the fee and margin of the task. The drop servicing provider can choose to get whatever the business can pay. For example, a client might pay $250 an hour for a software developer, while another client might pay around $300 for a similar service. As unfair as it might seem, it is how the business market economy works where the supply and demand define the price.
More Services
The services that the drop servicing provider decides to offer depend totally on them. They can add and remove services depending on whether it is needed and how popular it is. Moreover, a drop servicing provider can offer a lot of various services at a time.
Communication
Businesses prefer getting their tasks done by a provider who can do all instead of waiting to employ the “suitable person.”
Moreover, businesses find it easy to communicate and understand with the same people continuously. It makes it easy for drop servicing providers to get businesses and can keep them as far as they are happy with their work.
Start a Drop Servicing Business
Why is the drop servicing business such a secret? The best thing is to start a business in a way you wish to go on by being as transparent as you can, regarding the services you provide.
Transparency
You can let your clients know you are using freelancers or contractors to get the job done. There is no harm in letting your client know everything about your service regarding its recruitment, project, management, etc.
Mission, Plan, Coach
As a drop servicing provider, you should create a mission statement and sales security that consists of your UPS. Create a business plan, and turn it into action. Work and communicate with mentors and a business coach.
Legal Agreements
Remember to always use legal agreements for every service you will provide to clients. Ensure you include a service level agreement (SLA), warranty, price, payment method/schedule, and limited liability clauses to not get into any legality or complication.
The same goes for freelancers. You should get them to sign assignment contracts also, consisting of:
- Statement of assignment
- Statement on taxes, levies, penalties, and other charges
- Termination clause
- Confidentiality clause
- Costs
- Payment schedule
Final Thoughts
Remember, a drop servicing business is not for everyone to start. However, it could be the right one for you. There is a market and a need for such a service and professionalism. You get high flexibility, control, and profit. If you have the soft skills, why not start it, as it can make the benchmark of your success.