Drop servicing is an online business model where a merchant sells a service to a customer and then hires someone else to fulfill the order. In other words, it involves selling a service carried out by someone else. The merchant acts as a middleman between the client and the service provider, outsourcing the work to freelancers, agencies, or contractors. The merchant earns a profit by charging the client a higher price than what they pay the service provider.
Drop servicing is similar to dropshipping, which is a popular business model that lets you sell physical products without managing your own inventory. However, instead of products, drop servicing involves selling services.
Drop servicing can be a profitable business model that allows you to manage a team behind the scenes to deliver services to your clients, without having to execute the details yourself. Examples of drop servicing include hiring a pest control service that sends a freelance representative to handle pest issues, hiring a social media marketing company that outsources daily management to a freelancer or another agency, and buying a digital download from a company that originally licensed the content from a freelancer.
