2020 is a great year to start your drop servicing business. Like dropshipping, this is a business model where you do not do the work, but you simply market other people’s offer. You sell them on your website for a fee higher than what the freelancer charges, and the difference is your profit.
But how can you make this outsourcing business work? And what are the best drop servicing tips for 2020 that you can implement?
Today, we will show you some best practices to help you achieve success in drop servicing this years. Let us jump right in and get started.
1. Choose a Good Platform
A platform means a web-builder. Today, you have dozens of options to build a website. However, not all stores are built with payment channels, so choose one that has a partnership with payment gateways like Shopify and WooCommerce.
The right platform must be customizable. Just like building a dropshipping store, you need to have collections or product pages in your drop servicing website. Each service type must contain enough information that explains what the customer is gonna get.
Here are some tips when selecting a platform to build your drop servicing store:
- Must be affordable
- Must be flexible
- Must have payment gateways
- Must have apps that you can integrate
As you can see, a drop servicing website is also a store. The only thing you do not need is a shipping app because you are not going to sell any physical product at all. Choose a store platform that is easy to build, and one that you have to pay only on a monthly basis so you can cancel anytime.
2. Select Different Freelancers
In drop servicing, you would charge your client a fee for a particular service. Let us say that you sell writing services in your store. In this case, you should not rely on only just one writer.
You need a list of several writers who can do the different types of writing gigs. No all writers can do whitepapers. Not all writers can write fiction. Given these differences in talents, you must choose different freelancers who can deliver different types of services.
Also, the worst thing that can happen is to get an order, only to find out that your freelancer is sick. If you have at least three freelancers, then you have a back-up who can do the job.
Getting several freelancers is not easy. And it will cost you. If you think that you can just hire any freelancer from marketplaces and get great results, you are mistaken.
For example, you can go to Fiverr and you would see that there are hundreds of freelancers there that offer cheap services. They all have high feedback, so you select one.
Do not be surprised if you get poor-quality output. This is not uncommon in freelancer marketplaces. After all, you get what you pay for.
You need to spend some time weeding out the bad ones. This takes time and money. In the freelancing world, it is really difficult to explain why a freelancer did a bad job. If you want a business card design, how could you complain that the design was bad?
You can’t. The only way you can find good freelancers is by paying for the service. You cannot trust their portfolio, either, as many of these are fake.
3. Offer Related Types of Services
In drop servicing, you need to be prepared to offer services that belong together. This way, you can build something like a one-stop shop, and you can get more business from your customer.
For example, you may be selling eBook-writing services. In this case, you might as well as offer a service for eBook formatting, or eBook covers.
If you do this, you will improve your average order value. Your customers no longer have to look for another service provider, as you already offer what they are looking for. And since the customer is already at your website, you can use this opportunity to upsell or cross sell other services.
Here are some more ideas about services that are related with each other:
- Video animation and voice over services
- Video creation and script writing
- Website-building and SEO
- Facebook management and graphic arts
- Facebook ads and copywriting
There are so many things that you can do, and the sky is the limit. If your client is happy with one of the service he bought from you, then chances are he would try the others, too. And if this happens, you will not just increase your average order value, but also improve your customer loyalty.
4. Create a Social Media Marketing Plan
Any website that sells products or services need a social media marketing plan. You cannot just put up a website and expect people to flock in there. You need to take steps to make people aware of your brand and the services that you offer.
What is a social media marketing plan? First off, you need to consistently upload new stuff in your social media. Be it Instagram or Facebook, you must upload content in there to get yourself known.
The trick here is to get samples from the work of your freelancers. Post these samples on your social media channels, and do not forget to ask your followers to check out your website for the service costs.
You must also be active in social media groups and forums. Answer questions of potential clients who have had bad experiences with freelancers. Give them tips how to choose service providers, and then lead them your website.
Just be careful when doing this because a lot of forum sites do not like marketers. At best, the first thing you really have to do is to provide value, and then the readers would not mind if you have a link at the end of your answers.
5. Provide Case Studies
What is a case study? A case study is a proof of your effectiveness. This does not refer to customer testimonials, but rather on actual results.
If you are offering writing or SEO services, do you have proof that your services worked? Do you have evidence that your SEO game plan improved the traffic of your customer’s website?
A case study may be presented on a different area on your website. You must lead your customers to that part of the sales funnel to convince them that you are the real deal.
Charts and graphs work great, as you can show how your other customers have grown their businesses, how you helped them save money, how they improved their conversion rate, and so much more.
6. Prepare a Portfolio
A portfolio is the only way to showcase the actual output of your services. Five samples of your work for each service category is not enough. At the very least, your target customer must see 20 samples.
If you are offering business cards, show 20 samples of business cards. For icons and logos, show at least 20. If possible, you need to show more.
Why? Because there are thousands upon thousands of possible ideas out there. If your portfolio does not touch every possible idea or subject, your site visitor might go away and never order.
A great way to show a portfolio is to use carousels. That way, a customer does not have to keep on scrolling down.
Instead, he would stay on one section of the website, and scroll the portfolio horizontally. This is also great because the customer does not have to wait for the page to load if he tries to view each sample.
7. Use the Power of Ads
Nothing beats the power of advertising. It does not have to be costly, as you do not have to pay the highest bid for your selected keywords.
What you want is to get your services out in the market, and let people know that you are offering that service.
The platform of choice depends on the services you sell. For photo-related services like Photoshop, icons, and business cards, Instagram is your best bet.
For writing services and others like building a website, your best bet is Facebook.
Every month, you need to actively advertise your services to get new clients. Like dropshipping, you cannot expect to have massive traffic right away.
It is also much more difficult to get organic traffic for a drop servicing company because fewer people are searching for services than those looking for physical products.
8. Get Traffic to Your Website
This is the most important thing you have to focus on if you are going to do drop servicing. No one would buy if no one finds your website. The key to success, therefore, is website traffic.
There are many ways you can do this as shown below:
- Forum participation
- Freelance marketplaces
Like any online business, you have to do all of these if you want people to find you. You can actively participate in forums in Facebook or Quora, and then give people answers to their questions.
The more helpful you are, the more likely they are going to check your website.
Blogging is also important, as this is the only way you can grow your organic search and reach, along with social media efforts.
The good thing about blogging is that once you published your post, it is there and Google will keep ranking it for as long as it remains valuable.
9. Offer Bundled Services
The last in our list of tips for drop servicing business is to offer bundled services. People love to save on cost.
This is why all fast-food chains have bundled products. Instead of a customer paying higher fees for buying services separately, he just has to pay a smaller amount and then get two or more services.
The benefit for you is that you increase your average order value, and the benefit for the customer is that he saves a ton of money.
Be careful when offering bundled services. Make sure the price still allows you to pay for the freelancer’s service, and still make you a profit. Also, bundled services are best used if you know some pricing strategies.
For example, you can offer three types of bundles, but only one actually makes sense, which customers are going to buy. The other two are just what is called a pricing decoy.
Drop servicing is just like any other business. You have to work hard on getting traffic to make people aware that you exist. Quality of work is equally important.
The life of your drop servicing business depends on repeat orders.
In online stores, you cannot really expect people to come back to buy more physical products.
But if you are selling a service, your customers are likely to need this service again, so make sure you give them their money’s worth.