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Should you get into ‘Drop Servicing’?

Sure, you’ve heard of dropshipping (and at this point, probably far too many times).

But have you heard of Drop Servicing?

It’s what it sounds like: The term Drop Servicing is used to describe a business model where you market yourself as providing a service—graphic design, for example—and you then outsource that work to someone else for cheaper.

For example: You sell graphic design services for $1k per month. Someone hires you. Then, you go on Fiverr and hire someone for $200 per month. Easy profit, right?

Not so fast.

Notice something? Drop Servicing is just another way to describe the agency model. When you Drop Service, you’re acting as the head of a loosely-organized agency. You’re selling something, then paying a team of people less money to get it done.

And, when you put it that way… It’s not so easy. Running a good agency is a difficult thing to do. Ideas like ‘Drop Servicing’ get traction because, on the surface, they seem like easy ways to make cash without having significant skill. But that’s not the truth of it.

Insight: We just spent the last month diving into all sorts of business models, and this is one that came up. While it may seem attractive, don’t let fun new words like ‘Drop Servicing’ distract you from the model itself—which is a lot of hard work. If you want to start an agency, do it! Just don’t get lost in the ‘Drop Servicing’ sauce.