Bing ads are also usually cheaper than Google ads, so that could be a reason to give them a go.
Why They Are Good
Other than the differences named above in the volume of traffic and cost, they have the same advantages as Google ads.
3. Cold Email
In third spot, we have Cold email.
I was never really a fan of cold anything, but cold email flipped my opinion.
Using tools such as Snov.io, you can grab emails from LinkedIn profiles or the Google search results page to build a list of 100’s of prospects in minutes.
You can then verify the contacts and create email automation campaigns to reach out to them.
Why They Are Good
Other than the tool snov.io (which also has a freemium plan), there is no expense to this method.
This method is low-cost and allows you to connect to many high-quality leads very quickly.
What I will say though, is that you will want to use the first email to get your prospects on the phone to build the relationship.
4. Facebook Ads
Our 4th spot is Facebook ads.
Facebook ads seem to work fantastically in the SEO services industry, but can of course, also work for any other type of service.
What I like about Facebook ads though, is the retargeting ads.
Your main customer-acquisition channel could be something completely different, but just retargeting people who have visited your site on Facebook can be extremely effective.
For example, you could be doing B2B cold emails and say “Hey, I’m Sam from X Company (hyperlinked to your website)…..” now every time somebody clicks on that hyperlink, you have somebody who is potentially interested and you can retarget them on Facebook.
Of course, you could go much more specific with the page triggers, but this is just one way of getting low-cost Facebook ads.
Why They Are Good
Facebook Ads have such great targeting options including for your initial campaign to get new customers, as well as the retargeting campaigns.
With the right settings, you can get them fairly cheap too and they have worked great for many people.
5. B2B Blogging
Lastly, we have B2B blogging.
If you actually put your time and effort into growing a niche B2B blog in whatever services you want to sell, you will have floods of customers coming your way.
Of course, growing a blog takes a lot of time and effort, so this option will be ignored by most people.
But, if you would have a blog in any of the following niches:
Dropshipping is the same concept as drop servicing, but with physical products.
You sell products, but when somebody makes a purchase, you go and purchase that product from your supplier and ship it directly to your customer.
Of course, you charge a higher price than your supplier and the difference is your profit.
Shipping, production, etc. are all handled by somebody else.
You also don’t need any inventory, warehouses, or anything like that.
Drop Servicing vs DropShipping: Key Differences
Apart from the main difference which is that one sells services, whereas the other sells physical products, there are also some other differences which we are going to be talking about in this section.
B2B vs B2C
Dropshipping is less recurring
Harder to understand in different aspects
For more detailed explanations, see the explanations below.
Drop Servicing Has Higher Margins / Dropshipping More Quantity Of Sales
On average, drop servicing has higher margins.
I believe dropshipping profit margins are usually around 30% as a rule of thumb.
Drop Servicing margins are often 300%-500%.
However, this doesn’t mean that you can make more money with Drop Servicing, as dropshipping makes up for these margins with more sales.
Drop Servicing is B2B whereas DropShipping Is B2C
There may be some exceptions to this but usually drop servicing is B2B, while dropshipping is B2C.
This is also another reason why drop servicing has higher margins because B2C businesses you usually make more sales.
One isn’t better than the other, but it’s important to note the target audience difference.
Of course, when you are selling physical products there is some shipping involved.
Yes, a dropshipping store does not handle it, but it can still cause potential issues on orders.
Additionally, there is also a shipping cost which adds up on larger volume of orders, so it is important to take it into consideration.
DropShipping Is less recurring
There are some exceptions to this.
I have seen a couple of dropshipping stores that have added a recurring supply of what they are selling.
However, usually speaking, dropshipping stores have less recurring sales.
With drop servicing there is a lot more room for recurring deals.
Again, this isn’t necessarily a disadvantage for dropshipping stores, as they make it up with a bigger quantity of sales.
Harder To Understand In Different Aspects
With drop servicing, it’s harder to understand the service.
For example, if you were to sell a service related to SEO, you kind of have to know a little about SEO in order to do so.
If you are dropshipping and you sell a posture corrector there isn’t really too much to understand about the product.
However, I think that dropshipping has a little more technical aspects to learn when it comes to:
So, they both have their own learning curves.
Pros & Cons Of Drop Servicing
Pros Of Drop Servicing:
Little Experience Required
No Shipping, Inventory, etc.
Low Start-Up Costs
Cons Of Drop Servicing:
May be hard to understand some services
For a complete beginner, it might be hard to sell B2B services
You are liable if the freelancer doesn’t deliver as promised
Pros & Cons Of DropShipping
Pros Of Dropshipping:
Bigger Quantity Of Sales
Little Experience required
Low-Start Up Costs
Low Competition (sometimes)
The reason I say low competition is because you can sell whatever you want.
If you really dig deeper into AliExpress or other suppliers, there will always be low-competition markets.
Cons of Dropshipping:
There is shipping involved (usually from China)
Some technical learning curve
You are liable for your sale
I know you don’t handle the shipping yourself, but it’s still a con for me as it can bring potential issues if you have a bad supplier.
How To Start Drop Servicing
If you would like to start drop servicing here are the steps you need to take:
Find a service from freelance marketplaces such as Fiverr
Build a store around that service (charging more)
Advertise to people interested/looking for it
When you make sales, you purchase from your freelancer/supplier
Drop Servicing vs Affiliate Marketing: Introduction
Today we are going to talk about Drop Servicing vs Affiliate Marketing. Why?
These 2 business models are by far the easiest online businesses to start. With that being said, they are very different.
In affiliate marketing, we sell other businesses products through our tracking link when a sale is made we earn a commission. When we are drop servicing, we are selling services that we buy from freelancers at a cheaper price. The difference is our profit.
There are a few key differences between drop servicing and affiliate marketing which include:
Drop Servicing requires a payment processor
Drop Servicing usually requires a shorter time to succeed
Drop Servicing requires fewer skills
Affiliate Marketing is more scalable
Affiliate marketing requires a smaller budget
Throughout this guide, we will be talking about these points in more depth to help you find the right business for you.
We will be comparing these two business models in categories including:
Time To Success
Let’s get into the comparison!
Firstly, we are going to be looking at the entry barrier for both of these business models.
This one will be pretty easy, as they are both identical. Why?
For both of these businesses, there is no entry barrier. In terms of affiliate marketing, there are many affiliate programs that don’t even require approval.
If you are starting a drop servicing business, you can buy services and sell them as your own. There is no copyright or anything like that on services. However, I would always recommend letting the seller know that you are selling the service on, just so that you are on the safe side of things.
An entry barrier for both of these businesses does not exist, so let’s move onto the next category.
In terms of skills required, these businesses differ a little from each other.
Let’s start with drop servicing. Drop servicing requires you to be able to build a sales funnel or an online store where you sell your service. Thanks to technology today, this is really easy as most pieces of software have drag and drop builders.
The cheapest and recommended option is GetResponse, their prices start at just $15 per month. They also offer a 30-day free trial. Apart from building your store, you will only have to be able to pick out services to sell (for example, from Fiverr) and do keyword research.
Now, let’s talk about the skills required for affiliate marketing.
There are many different methods for affiliate marketing, you could start a blog, you could start a YouTube channel or you could run paid ads.
All of these different methods require different skills. However, I would say that one of the main skills for affiliate marketing is content creation.
Or if you purely want to focus on paid ads, you would have to learn paid ads, keyword research, and email marketing. Again, in terms of collecting emails, you can do this with GetResponse. The same goes for email marketing.
So, in terms of skills, although they are pretty close, I would say that drop servicing requires a little fewer skills. However, it really depends on the affiliate marketing method you choose.
Next, we are going to have a look at the budget required to start these two businesses. In the examples below, we will be having a look at the bare minimum for starting these businesses. I would always advise starting with more.
Drop Servicing Budget
When you are starting a drop servicing business, you will only need a basic GetResponse plan that costs $15 per month. The rest of the budget all goes to ad spend.
In order to be successful, I would recommend using a budget as high as possible. However, with very good keyword research, you could use ad spend as little as $100. However, if you are using a budget this small, then you will have to do very good keyword research as well as competitor analysis.
Here are some factors to research for your drop servicing business:
CPC of keywords you want to target
How much does your competitor charge?
Search volume of keywords
Other data about competitor
If you plan a campaign well, taking into account all of these factors, then you can start with as little as $100. However, I wouldn’t recommend starting with an amount that small as it could always go wrong.
In total, you are looking at $15 per month and your ad budget. Additionally, you will probably need some more depending on your payment processor as you will have to buy the service after you make a sale.
Affiliate Marketing Budget
In affiliate marketing, there are many different methods that you can use, as I mentioned earlier.
So, I decided that instead of giving you a number that would only be accurate for one method, I would give you a table. The table below contains the minimum for each method.
If you are very skilled in paid ads, $400. I would rather recommend a monthly budget
The reason, I say you shouldn’t start with less than $1000 if you are focusing on paid ads, is that you will always have to test a little. Especially, with affiliate marketing as other affiliates are promoting the same products so there will be competition. Additionally, you will usually only receive 50% commissions which mean 50% less profit of a normal advertising campaign.
In terms of budget, affiliate marketing through content creation will require a smaller budget. If you want to use paid ads, then drop servicing will usually require a smaller budget.
Time To Succeed
Next, I wanted to talk about the time to succeed.
Now, this factor has a lot of variables including:
Time & Effort put in
However, I will still guide you through the differences between both of these business models.
Drop Servicing – Time To Succeed
Drop Servicing will usually require a smaller time to succeed. To become profitable, will usually only take around 30 days or even less. However, this number of days does assume that you put a lot of time and effort into the business. Additionally, you should also have a decent-sized budget depending on your keywords and niche.
To earn a substantial extra income off drop serving can take anywhere from 30 days to 90 days. Again, this assumes that you are putting in a great effort.
Affiliate Marketing – Time To Succeed
With affiliate marketing, things get a little bit more complicated.
If you are going down the recommended content creation path, then things will usually take around 6 months to start gaining some traction. Often, this number can be more if you are blogging. If you are creating YouTube videos, this number can be less.
With that being said, you must know it depends on so many different variables that it’s impossible to say.
In terms of paid ads, it can take anywhere from 30 days to 6 months. There are so many variables and it depends on your campaign.
Affiliate marketing through content creation will always take a lot longer than paid ads. However, it is less risky, evergreen and free. The time to succeed in drop servicing is definitely quicker than when you are promoting affiliate products with paid ads.
Affiliate marketing is more scalable.
You will be able to have more customers and these customers will buy multiple products. Not only that, but you will also have other ways of monetizing by selling your own info product and other methods.
Not only this, but you can also branch out into different niches too, so the sky is the limit.
With drop servicing, things are a little more complicated, but it’s scalable too. However, I would argue that it’s not quite as scalable as affiliate marketing as there are only so many businesses looking for a specific service.
That doesn’t mean that you can’t scale. You can scale a drop servicing business into many little agencies for different purposes.
For example, you could have 5 different agencies:
E-Book creation agency
Video Editing & Creation Agency
Of course, this would be a bit later down the line, but you can build yourself up a real agency through drop servicing. In fact, you could build yourself multiple agencies that all do a decent amount of revenue.
Other but important
Lastly, I wanted to talk about things that don’t fit into the categories above, but yet.
1. Policies, Terms & Conditions and Disclaimers
This is something that you will have to research yourself. For both of these business models you will need privacy policies and terms and conditions. Additionally, you will need affiliate disclaimers as an affiliate. If you are starting a drop servicing business, you will also need a refund policy for certain scenarios.
2. Payment Processor
As I mentioned earlier, you will need a payment processor if you start a drop servicing business. So, make sure to go and research which ones would work for you.
3. Business Licenses & Taxes
Again, something that you need to research yourself. This depends on your country, your state, and your situation. So, you will have to research these things yourself. Make sure to do this, before entering any business model.
4. Risk Of Paid Advertising
Paid advertising carries risks. You should always only invest amounts that you can lose, or even are willing to lose. Each paid advertising campaign always needs planning, usually, it needs testing too. So, make sure to be sure about those risks involved.
If you strongly want to go into paid advertising, I would recommend drop servicing. As somebody who does both of these business models, I have almost completely stopped running paid ads for affiliate marketing. Paid ads for drop servicing are a lot more effective. Especially, if you target businesses who are looking for these services that you are selling.
Both of these businesses are incredibly easy, compared to other business models.
I hope that this article has helped you find the right business model for you. They are both great business models, so either choice is great. Personally, I like to do both, as I enjoy both of them.
If you are in doubt, you should just read another few articles, go look at what some different content creators say until you can make a definite choice. Below are some recommended resources on both of these businesses that will help you get started.
Example Of One Of My Current Drop Servicing Funnels
Here is an example of one of my current drop servicing funnels. You can’t see the domain, because else you can see where I am advertising with certain tools. I don’t want to drive the competition up as it’s working pretty well right now.
The example below is with an extremely basic Kartra templateand it converts so well.
I can buy this service for $30-$150 per month. Then I just use paid ads to advertise this exact funnel. Even if I spend a $200 on getting a couple of trials, I am super-profitable.
Do you see how powerful this is?
I also have an email pop-up that offers a 7 day trial for the same price that I buy the service for. This pop up doubles my conversions. And, I get their email address.
I then use my Kartra follow-up to send them a custom email that contains a link to the 7-day offer.
How I Make Even More Money Drop Servicing
Once, I have the business as a customer, I don’t stop there. I go and research their businesses and see what other social platforms they are on. It may be Pinterest, Facebook, or Instagram. Then I find another freelancer who offers a management service.
Then, I send them another page in a follow-up, but with a discount code. I still make $150+ p/m additionally. And, you can do this with every customer!
Creating Your Drop Servicing Sales Funnel
Taking action is the first step to success. So, go and start creating your sales funnel right now!
Your sales funnel should:
Collect Emails (so you can sell repeatedly)
Include Order-Bumps & One-Click Upsells
As I mentioned earlier, I recommend you use Kartra because that’s what I use. However, feel free to go with the other options.
In the Kartra templates, go to the “long sales pages”. These convert like crazy. You need to edit them a lot & make them unique to what you are offering. I use the dark blue and yellow template in the image below a lot and just leave the colors as they look professional and convert well.
Step 3: Promoting Your Drop Servicing Business
Did you create your drop servicing business?
Yes? Congratulations, you have a business.
No? Go back and do it. If you don’t take action, nothing will happen.
How To Promote Your Drop Servicing Business
You are charging high prices, right?
The people you meet in your local supermarket are not going to pay those prices. You need to advertise to people who need your service. How do we know if somebody needs your service? They are looking for it.
Luckily, with Google ads, you can advertise your business right there. Additionally, if you think you know a place where you could advertise instead, feel free to do so. For example, if your service is Pinterest managing, you could maybe advertise on Pinterest.
Setting Up Google Ads
To make things easier, I linked a brilliant Google ads tutorial below.
There are also some keywords to target below the video. You’re welcome 😉
Here are some keywords that you could consider:
High Quality (service)
Keyword + free is looking for a free version so avoid this.
Again, do this now.
The sooner you get started, the bigger your advantage.
Drop Servicing Guide Step-By-Step Recap
Let’s recap everything you have learned.
Step 1 – Picking One Service
First of all, you need to pick a service from Fiverr or Legiit.
Pick one that will help the business owner make money, then they will pay you more. And, they will keep coming back.
Step 2 – Creating Your Drop Service Business
This is the most important step. Otherwise, you can’t sell.
I like to use Kartra. Again, this is up to you. You can also use Instapage or the DIY method.
Step 3 – Advertise
Once your drop servicing business is ready, you just need to feed it with interested visitors.
The keyword is interested. That’s why I recommend Google ads.
Tips For Your Drop Servicing Business
Before you start, read these tips. They will help you sell more!
Tip #1 Upsells
Create upsells in your funnel/store which could include
24 Hour delivery
A relevant service
Your Fiverr “contractor” offers 24 Hour delivery for $5?
Add it to your funnel for $20! You are your own boss here and if your site looks professional then it’s all possible!
Tip #2 Profit Margin
Focus on having a professional website and then sell the service for at least 2x – 5x higher than what you are paying.
This will pay for your advertising and give you a juicy profit.
Tip #3 Know Your Service!
Make sure you are a little knowledgable about the service that you are selling.
This will allow you to create a more professional store. If you don’t know what you are selling your clients will see once they visit your website!
Tip #4 Back Up!
Have one or two backup sellers!
Sometimes, in the case that someone doesn’t respond you need to have a back-up seller who can fulfill the service! You will always want to be one the safe side of things, so don’t ignore this advice.
The Drop Servicing Business Model: FAQ
Does Drop Servicing Work?
Does drop servicing work? Yes, drop servicing works. However, it is a business which means it does require some initial research before jumping in. It all relies on picking a profitable service and advertising it to somebody who values it higher in the right place, at the right time.
Is Drop Servicing legal?
Is drop servicing legal? Yes, you are just outsourcing the work to a freelancer. There is nothing illegal about it. However, it’s worth telling the freelancer what you are doing to see whether they are okay with it.
Is Drop Servicing Profitable?
Yes, drop servicing is profitable. Selling a service on its own is profitable. Drop servicing is even more profitable because it’s scalable. As you are not completing the service yourself, you could easily handle 10 clients. That makes it extremely profitable.
How Much Will Drop Servicing Cost?
Drop Servicing is one of the cheapest businesses out there. You can run the entire business on Kartra for $99 per month.
So, your entire cost is $99 per month + ad spend.
What are the limitations of Drop Servicing?
The limitation of drop servicing is that you are liable if there are problems.
For example, if your freelancer delivers late or doesn’t deliver, you’re liable. However, you can cover yourself with high-profit margins & backup sellers.
What Are The Best Services For Drop Servicing?
The best services are those that give the business owner an ROI or help them grow/sell.
These will make them keep coming back so that you can sign them on a recurring contract.