The average person works a job offering little freedom, surrendering to the notion that a stable job is stressful. While the tendency to be distressed is relative, there is no doubt that everyone will be happier with some freedom. Imagine earning money while you travel, or taking vacations on your own time. This job exists, and it does not require top grades or a degree. Learn some people skills, and you are eligible to start a drop service business.
What is drop servicing? It is similar to dropshipping, with a bigger window for profits. Dropshipping refers to outsourcing products, whereas drop servicing refers to outsourcing services. Here is what a typical chain of events looks like in this business:
The client assigns you some work – you relay that work to your team-member – both of you get paid. It looks easy, but understanding a few factors is helpful. Let’s get to know the machinations of a successful drop service business.
- Choose your service.
Your job in a drop servicing business is to get work done from other people. People like to shop online for products and also services nowadays. This fact implies that you could choose a service that you are not qualified/educated for. However, it is advisable to gather some knowledge and experience in the desired field. It is beneficial to start as a freelancer to get exposure. Make sure to know enough to distinguish between good and bad quality work.
There are several areas to dabble in, such as writing, graphic designing, social media marketing, translation etc. You are free to choose whatever, but some fields have a greater demand. GoogleTrends is a great tool to know how much demand a niche has.
- Gather your team members.
This part is where you play the role of an employer. You only need to look for good quality work at a reasonable price. Many people do freelancing as a side hustle, or as a way to gain expertise. Build your team according to the amount of work you get daily. Selecting an ideal candidate can be tricky. Assign a sample project to a potential candidate and look for a good response time and quality.
Keep an eye out for bright students because freelancing is their way to gather experience until they have a redeemable degree. Hiring a skilled candidate now will save you a lot of stress down the line. However, remember that a candidate may not have all the desirable skills, and you might have to train them. It is another reason to select a niche you are moderately familiar with.
- Create a regular flow of work.
This part can be somewhat pressurizing as you need to prove yourself to several clients. You have to convince them of your work-quality, similar to how your pool of candidates had to convince you. In most cases, a high paying client will have several service providers to select from. To ensure a steady stream of work, focus on gathering clients who are looking for long-term service providers. Such clients have usually established companies with a lot of job opportunities.
Large companies prefer people who have their website. If you are only starting your drop servicing business, then there’s a good chance that you have not created your website. Even though a website will help you gain footing with a big business. It is advisable to use your available networks to get in touch with potential clients. Managing a website is an entirely different business, and it will place an additional burden on you (unless you are familiar with it).
- Manage your paychecks and your costs.
You only have to manipulate the price such that you and your team-member are both satisfied. Just like shopping online from e-commerce websites, you have to be calculative with your money to ensure that you are spending at the right place. Usually, charging your clients double/triple of what you are paying your candidates will secure a reasonable profit margin. It is another reason to look for high-paying clients because your team is less likely to deliver quality work if they are underpaid. You either have a few high-paying clients or several low-paying ones, learn to establish a balance here.
You can also earn some extra income if you provide a few exciting offers. An example is urgent projects – you can charge extra for it. Expanding your team into other areas is beneficial too. Your client may need a social media marketer as well as a video editor, if this client already trusts you with video editing, he will most likely trust you with social media marketing too. The bottom line is that you are not doing the projects. You are getting paid to manage other people.
The article so far was a brief explanation of how to do drop servicing. Apart from these steps, you will need to develop some interpersonal skills such as :
- Effective Communication: Be clear with your clients and team. It is crucial to keep both of them happy.
- Conscientiousness: You will be juggling with different projects. It will get increasingly challenging to keep a tab on your work as you gather more clients. Always maintain an excel workbook.
- Patience: You are communicating with two parties, and they both will drive you crazy at times. Your clients may place unrealistic expectations, which your team will find hard to handle. Stay calm and logical in such scenarios.
- Marketing yourself: Believe it or not, your confidence and self-belief are as important as your expertise. No matter how good your skills are, they are not enough to get you hired.
The final word.
You are creating employment opportunities by starting a drop servicing agency. A drop service business can be very profitable if you play by the rules. It is comparatively a better side hustle compared to regular freelancing. Besides, you get to rejoice knowing that a single project provides income to more than one person. Your team members are eligible to work directly under your client, but you are the middleman because you have good management and people skills. And this field has just started booming just as the boom in online shopping a few years ago.