You have heard of dropshipping or maybe you are a dropshipper but have you ever looked at drop servicing? Drop servicing is currently at the stage where dropshipping was in the 2000s with the introduction of Amazon and eBay - it is ready to take off. Can you afford to miss out?

In this article we look at what drop servicing is, how it works, some killer ideas for drop servicing, and how a Business Account can save you money when drop servicing.

What is drop servicing?

Drop servicing is a business model where you:¹

Sell a digital service to a customer.

Pay an external service provider to provide the service under your name.

Deliver the service.

Pocket the difference between what your customer pays and what you pay the service provider.

In other words, you sell a digital service over the internet but outsource the performance of that service.

A physical service, like a haircut, must be performed in person but a digital service can be provided to anyone around the world. And it can be outsourced to anyone around the world.

A digital service differs from a digital product in that a digital service requires outside input from the provider while a digital product can be sold to a customer as is. For example, you can employ a digital marketing company to run an email campaign for you - a digital service. Or you can buy a set of email sales templates which you can customise yourself - a digital product.

Why is drop servicing becoming popular? It allows entrepreneurs to scale their service business faster.

Drop servicing is also becoming easier with the emergence of white label service providers and freelancing websites like Upwork and Fiverr. It has never been easier to find good service providers at affordable prices.

A white label service provider is a company that provides an unbranded service that you can customise with your branding, customer service, and other features.