What Is the Drop Servicing and How Does It Work? Examples, Definitions, and More

 

 

 

What is the Drop Servicing and how does it work?

Let's say you come across a client who needs website writing services. 

They're willing to pay $1,500 for ten papers sent over the next ten weeks.

 

If you plan to leave this job, the first thing you'll need to do is find a freelance writer who will write the articles for less than the $1,500 you're being paid (say $1,000). 

The papers are then returned to you by the writer, and you deliver them to the client.

 

You've given $1,000, received $1,500, and kept $500 for your troubles.

 

Creative Agencies Drop Servicing Examples

 

Drop servicing has been practiced by creative companies who produce content on behalf of brands for decades. The creative agency normally doesn't create the material they've sold to their client; instead, they hire someone else to do it (usually a production company).

 

The main difference here is that the customer is aware that the asset's output is being outsourced by the agency. Between the customer, the agency, and the service provider, there is openness.

Products in the Digital Age

Any digital product you've purchased online was almost certainly written by someone on Fiver for less than you charged for it. That's how the "maker" makes money: by arbitraging between the price you're willing to pay for the product and the cost of hiring a freelancer to produce it.

Management of social media

Many social media companies hire freelancers to create content and then resell it to their clients as their own.

Other Cases of Drop Servicing:

Production of Graphic Design, Video Production, Audio Production, and Podcast Production

Writing for the web

Designing A Website

Drop Servicing Can Be Scaled

Drop servicing helps you to scale your company in ways that you wouldn't be able to do if you did it yourself.

 

Your income is reduced if you write all of the blog posts, produce all of the content, design all of the templates, and write all of the social media updates yourself.

 

Drop maintenance, on the other hand, allows you to be charged by the project rather than the hour. There's no limit on how many tasks you can take on if you can easily outsource them.

 

Drop servicing can be scaled in a way that the time can't.

Quality Management Consequences of Drop Servicing

 

The lack of quality control is the most noticeable disadvantage of drop servicing. Since you aren't providing the digital service yourself, you don't have complete control over its efficiency.

 

If you outsource to the wrong provider, you can end up spending a lot of time repairing other people's jobs. This cuts into your profit margin as well as your time.

 

To address this, make sure you have a pool of vetted, experienced freelancers you can rely on. Make an effort to cultivate partnerships with excellent freelancers so that you can rely on them to perform as a deadline approaches.

Ambiguity in Morality

 

If your client is unaware that you are discontinuing operation, there might be a moral problem.

 

It's morally ambiguous if they believe you're handling the operation on your own and you don't tell them you're outsourcing the work.

 

It's not a long-term strategy for your business.

 

If you're going to provide drop service, make sure you're clear about what you'll be doing. Inform your client that you operate a team of trained freelancers and that you are solely responsible for all deliverables.

Summary of Drop Servicing

 

Drop servicing is a term that has existed for much longer than the act itself. But now that it has a name, I expect it to become more famous.

 

It's scalable, profitable, and simple to implement.