Drop servicing is perfect for you if you have at least two or three of the following:

• Have skills that you can sell, but you prefer to hire to be higher up the value chain and hire freelancers to do the actual work for you.
• Want to run a service-based business as a side or part-time business that doesn't require a lot of time and capital to set up and run.
• As a first-time entrepreneur, drop servicing is a great business since it has low cost, and typically there is minimal time involvement on your end.
Now that we have checked that you are up for the challenge to become an excellent drop servicing agent let's proceed to further dissect the business model.

Drop servicing and drop shipping are pretty much the same concepts.

1. Both drop shipping and drop servicing are low-cost business models that you can start. You require very little capital since you do not need to invest heavily in any actual products or services, or machines or other massive investments.
2. You can learn on the fly. It is easy to get your drop shipping or drop servicing store up and running, and with each passing day, you can make small tweaks based on the data available to make your store better and improve your sales.
3. Both drop servicing and drop shipping are low-risk business models that you can try out. With little effort and cash investment to run the business, there is minimal risk in this business.

Let's look at some of the benefits you will gain when you start your own drop servicing business.

1. Low startup cost
To start a successful drop servicing business, you do not need to invest in any skills. You simply need a basic appreciation of the service you are offering, and you are good to go. You also do not need to purchase any high-value equipment or invest in any products. Your only startup costs are the website that you build (which can be as easy as a single page website) and the cost of advertising to get you started.
2. Higher value per sale
This is one of the best things about drop servicing. Typical service bouquets go for between $99 - $249 to the right audience. Therefore, a single sale nets you a decent profit depending on the cost of the freelancer.
3. Recurring income
With drop servicing, it is very easy to make the income recurring. Think about services such as social media design or content marketing services. Most clients are likely to keep you on a monthly retainer to provide these services to them.
4. Little skills required
The best thing is you can learn this on the job. Another way to look at it is that if you are not confident to talk about the technicalities with your clients, you can hire a virtual assistant who has this knowledge to handle this for you.
5. No shipping or logistics risk
With drop servicing, you do not need to worry about the costs of shipping and any logistic hassles. Because you are offering a service, you can deliver these via the internet, and there are no physical products to handle. All you need is to know how to manage the quality of the work you receive from your freelance.