Working from home was considered a pipe dream, but the 21st century turned that dream into a reality. Entrepreneurs and startups are now finding various ways to make money online, even with remote work.
Some people might think of eCommerce as the only way to make money. But in the past couple of years, two business models are getting much attention—Dropshipping Vs. Drop servicing.
Can you imagine these business models allow you to make a six-figure income right from the comfort of your home?
Let’s start with the basic introduction before we move on to point out the difference between the two:
Dropshipping Vs. Drop Servicing: An Introduction
Although there is a thin line of difference between the two, it affects the way we work.
In Dropshipping, you are selling online goods without worrying about the stock. Anyone selling the product will be directed towards the person selling the product via an affiliate, and the vendor will fulfill the product.
While drop servicing follows a similar approach, but there are no physical products to sell. Drop servicing deals with virtual services. The services might include website development, search engine optimization, or graphic design. In drop servicing, you take the order from the client, forward it to a professional and deliver the order back with some commission.
What To Use When?
Mostly, people focus on a model that can give fast results. However, there are other factors under the hood that need to be considered before choosing one model.
For instance, people with some knowledge of technology will prefer drop shipping because they can quickly sell physical products without making much effort. From packaging to delivery, everything will be handled by someone else. They need to take the order and forward it.
While on the other hand, those with a passion for that skill, for instance, SEO for website development, might prefer going for drop servicing.
For that, we need to understand both in detail:
Dropshipping is profitable if you choose the right products to sell. Platforms like Shopify and AliExpress provide great favor to drop shippers where sellers can easily place products and sell them without hassle.
But the real struggle is how to find the right products to sell?
Neil Patel shows how you can find the right products to sell with dropshipping.
The good thing is that you don’t have to worry about the stock of those products.
However, if you choose the wrong product to sell, it will give you less profit or face a loss.
You also need to figure out which of the dropshippers are making quick delivery, stick to them and focus more on the customer feedback to learn more about the vendor.
At times the product might not arrive even when the payment is made; this will allow negative feedback. It would help if you were careful about it.
Those of you who want to sell an online service can go for the Drop servicing model.
One way to start is to set up your website. A simple website that will list the services that you are offering. Explain what services you will be offering in each category.
For those who don’t have an investment to start, they can go for an alternative method. They can use freelancing services to grab orders and pass them on to a professional.
Here are some freelancing websites that will help you start:
There are tons of other platforms available in the market, but you need to consider the quality of the service you are providing.
You can even use advertising platforms to reach the right professional for your job. Or you can take help from social media.
It might take time to search for the right service, but once you figure it out, it might become challenging to control sales.
Since there is no physical product involved, there is no need to worry about damaging the product.
The business can be started with little or no investment at all.
The only thing that you need to ensure is to manage the time. Because when you assign work to a freelancer, it often tends to get late. You need to keep the customer happy with timely delivery.
The fastest way to earn with Drop servicing is via website development. Business owners worry a lot about their website, so they allocate a good amount of budget for developing their website.
How To Earn A Lot With Website Development?
As a marketer, blogger, or even someone who knows how to handle people, outsourcing website development can help them earn more than $10,000 as a commission.
A professional website development agency will help you get the job done. You need to take the commission and deliver the project to the customer. If you want to increase your commission, you can learn the basics of website development and divide the process into phases. You can then charge for each phase.
There are plenty of opportunities out there. The business owners are looking for good website developers. If you can connect the developers with customers, you can easily earn something in between.
You need to ensure that the services you are providing are third-party services. So, you will be responsible if the thing goes wrong. That’s why you must know what the customer wants and ensure that the developer delivers it on-time.
In the end, you have a choice to either go with dropshipping or use drop services to earn. If you want to go for something that needs little effort, you can go with drop servicing, but if you have the patience to build a business, you can always go for dropshipping because that will take some time to setup.
Whatever you choose, in the end, it is up to you to get the project delivered from the professional to the customer.