How Much Can You Really Make Drop Servicing?
If you're new to drop servicing as a concept, it's a pretty simple business model.
Basically it works like this:
Drop servicing is when you sell services to clients and then outsource the work to either freelancers, an in-house team (built by you), or another agency. You're essentially acting as a middleman by handling the client acquisition, customer support, and service packaging while the person you hire fulfills the service delivery. Your profit comes from the difference between what you charge your client and how much it costs you to have the service fulfilled by the contractor you hired.
Example- let's say you offer logo design services for $100. You find clients who need logos and get them to agree on your rate. Then, you outsource the creation and delivery of the logo to a freelancer for $20. You profit $80 and all you did was press a few buttons! Now imagine doing this with a $5000 website that you were able to get created by a freelancer for $800. Now you see why this is exciting?
The real beauty of drop servicing comes from the potential time-freedom it provides once you get your business up and running. While it does take a great deal of effort and skill to achieve, financial freedom and the "laptop on the beach" lifestyle is indeed possible. It only takes a few consistent clients every month to bring in an income that could replace most typical 9-5 salaries. Drop servicing also allows for you to supplement your existing income if you don't want to commit to it as a full-time thing as well. It truly is one of those things where you get out what you put in. The reason it is my favorite biz model by far (and believe me, I've tried them ALL) is because it rewards speed and consistency over all else. You don't need a ton of money to get started and it costs next to nothing to keep it going if you're willing to put in the effort.
So how much can you really make drop servicing?
I'll give you a very easy way to figure that out! But first, you need to ask yourself how much you actually want to make. By knowing how much you want to make, you're giving yourself a head start on what you should sell and who you should be selling it to. Don't just say vague things like "a million bucks"- actually get granular with it! When my initial goal was to make $60,000 per year doing this as a side hustle, I broke that into smaller chunks. $60,000 divided over 12 months, that comes out to $5,000 per month. That's $1250 per week. Now that I have an exact dollar amount in my head, I'm able to figure out how many sales I need to make. Originally I was selling YouTube scripts and thumbnails to a few big channels for $100 a pop, so I needed roughly 13 sales per week to reach my goal. Eventually after 2-3 months I had four consistent clients that had me on retainer and usually another 10-20 miscellaneous clients who found me via referral or paid ads. The way to reach your goal is to figure out how much you need to make per sale and the number of clients it will take to get you there.
My point is, figure out your ideal number- break it down into smaller chunks, and then do the simple math to figure out how many sales it would take. Personally, I like to aim for larger projects in the $500+ per month range and get clients on a monthly retainer. Incentivize your existing clients for referrals by offering them a kick back or even better, a discount off of their current monthly rate with you (shoutout to Alex Hormozi, master of the referral).
Can drop servicing make you rich?
Well, rich is a relative term. But drop servicing does it have the ability to give you financial freedom at a fraction of the time and mental sanity necessary to maintain a job in a cubicle or office you hate? Absolutely!
Conclusion and Recap
Drop servicing presents the most dynamic and scalable business model of any online. It requires little to no startup capital and continues to be a game-changer for those looking to step into the realm of entrepreneurship. Through understanding the sales process, the exact financial number you wish to obtain, and building simple and efficient systems you have the ability to quickly build a profitable business.
The example of scaling from $100 logo design flipping to $5,000 website clients demonstrates the immense potential for growth and earnings drop servicing. Success in this business model is not just about making sales, it's about planning, adapting, and the importance of strategic partnerships with freelancers that are mutually beneficial and profitable.
Whether you're aiming for complete financial freedom or just an additional income stream, drop servicing offers a pathway to your goals! Like any business venture, the outcome heavily relies on the effort you put in and your commitment to navigating obstacles as they arise. It still takes time. If it was super easy, everyone would do it! Luckily for you, consistency never loses. With the right approach, drop servicing is not just another business model; it's a step towards redefining your work-life balance and achieving your ideal lifestyle.