How to Start a Drop Servicing Business in the Philippines:

***Note: This is Part 2 of 3 of my series on How To Earn Through The Internet without Too Much Skills or Knowledge.

To head to Part 1, click on this link: Dropshipping in the Philippines: How to Start

To head to Part 3, click here: What is Print On Demand? How To Start A Print On Demand Business?

You’ve probably heard of Dropshipping. But have you ever heard of Drop Servicing? How do you start a Drop Servicing Business in the Philippines? Imagine a line of work where you’re earning with having practically no other investment but your device and your fingertips. Think of a business wherein you get paid by bridging the gap between clientele demand and freelance services while helping freelancers earn and put into practice their professional expertise. Sounds pretty much like a win-win-win, right?

Clients get what they want, freelancers earn & showcase their craft, and you, well, you get money for the least input. This right here is called drop servicing. Hopefully, through this post, you will learn how to start a Drop servicing Business.

What is Drop Servicing in the Philippines?

Drop servicing in the Philippines is selling a “service” (e.g. graphic design or bookkeeping), produced and delivered by a third party to another party (client). Think of outsourcing where you provide the service to your client while you outsource the labor of that service to freelancers. It is similar to Dropshipping but instead of physical products being sold, you are actually selling services.

If you still don’t understand the explanation above, study the business model I made below:

How to Start a Drop Servicing Business Philippines
Drop Servicing Business Model and how it works

Example:

Let’s say, a client orders from you some content writing services. You agree to be paid P3,500 for a 1000-word article about Digital Marketing. You, being the service dropper, looks for a freelancer who can deliver the service and output for a lower price.

Let’s say, you’ve found one who is willing to produce a 1000-word article for P500. So how much will you earn from a single transaction:

P3,500 – P500 = P3,000 income from one service

Of course, this is just an oversimplified example just so you can understand my point. But nonetheless, it doesn’t require too much complex transactions, computations, and communication between you and the client. Moreover, the rate depends on the agreement between you, the client, and the freelancer. Like mentioned above, the concept of drop services isn’t the first of its own, but has been derived from an even earlier trade method called Dropshipping.

Dropshipping exists to this day, where clients avail from sellers some physical products and the sellers simply notify their suppliers, then done-deal. Sellers don’t even need to have a storage facility for their products. They simply serve as a conduit for a transaction between the supplier and the consumers, and sellers profit by marking-up the price provided by the supplier. The same principle exists in drop services, however, no physical products are exchanged, but services.

For both Drop Servicing and Dropshipping, the burden of work isn’t yours. You look for others who will do it for you. You earn, nonetheless. To know more about Dropshipping and its similarities with Drop Servicing, read my post here.

What can you Drop Service in the Philippines?

As the name suggests, any form of service can be offered for commission in this line of business.

Commonly, freelance artists and writers make up the population of drop services. So the most usual services that can be dropped for commission are the following:

a. Writing

  • Content Writing
  • Technical Writing
  • Blog Writing
  • Editing and Proofreading
  • Copywriting
  • Vlog Scripts
  • Academic Writing

b. Sales and Marketing

  • Search Engine Optimization (SEO)
  • Email Marketing
  • Market Research
  • Social Media Management

c. Design/Creation

  • Graphic Design
  • Animation
  • Art and Illustration
  • Video Editing

d. Accounting and Bookkeeping Services

For a more comprehensive list of the best drop servicing ideas in the Philippines, check out our article about the 16 Drop Servicing Ideas (Zero Investment & Easy!) in the Philippines.

Did I miss out on any drop services? If I did, I would appreciate it if you would share it in the comments section below. These are only a few examples. But in reality, any form of profitable service can be dropped. However, drop servicing, like every other line of work, requires some knowledge on particular subject matters for the drop to be effective.

What if you don’t have the knowledge or the expertise of the services you’ll be offering? As the saying goes “you can’t teach what you don’t know; and you can’t lead were you don’t go” which means that the services you drop should be the ones you are knowledgeable of to avoid failing the task and losing credibility as a service dropper.

But take note, you don’t need to be an expert though. Your freelancers will do the job anyway. Just knowing the basic knowledge will do. I’ll explain more of this in the disadvantages section of this post.

Where can you find Drop Services in the Philippines?

“So Ameena, where do you find these Freelancers?”

For the past years, the demand for freelance activities has been in an increasing trend. So definitely a few drop service companies have picked up on the wave and have made “agencies” where clients ask services and freelancers bid themselves on.

A few notable websites where drop services can be found are enumerated below:

In the platforms listed above, each freelancer posts their profile. You must take into consideration the following:

  • Services offered and skills
  • Rate per hour
  • Previous client reviews
  • No. of current job orders

You can also post a job request and the freelancers will be the one to apply and bid on your job posting. As a gentle reminder, be certain of whom you hire by having a brief background check on them, their credentials, and assess their rates properly. You wouldn’t want an expensive price for a mediocre work. And make sure you don’t gamble your money with an agency having no clear-cut, safe, and surefire payment method.  

How to start a Drop Servicing Business in the Philippines

Drop Servicing is simply being an agency for freelancers. You embody that agency. You are free to nitpick the type of task requested by the client and in return, choose a freelancer to do the task for them. There isn’t a necessary need for a physical store or location to conduct drop services. However, it pays to have a center or a blog/website for your commerce where clients will easily access you for their requests.

As long as there is a demand for these services, you will have a business.

 

 

How much will it cost to do Drop Servicing in the Philippines?

There is not a definitive answer for this query as the cost is relative to how invested you are in the drop servicing business.

  • You can either begin with manual archaic message-text-call commissioning or you can start big with a website.
  • You can either chat random Facebook people or Facebook groups of a project you want done, or you can create a page and have that page boosted for a certain price and a wider engagement.
  • You can hire some freelancers on the platforms previously listed above. Collect and collect then select the best freelancer you get. Then advertise that you are looking for clients who want to try your services and let your chosen freelancer(s) do the labor.

The difference is, if you start on a lowball, expect lowball income and just work your way through. But if you invest big today, get a website, get enough website traffic, put in some ads, get the news out and soon enough you’ll be earning tenfold what you would’ve earned lowballing.

Nevertheless, the cost all depends on you. If you are intentional enough, no matter how you begin, it will always result to profit, profit, and more profit.

Advantages of a Drop Servicing Business in the Philippines

With a drop servicing business, you have the freedom to work whenever and wherever you want, be it locally or internationally. You can be your own boss and the opportunities are limitless. Of course, to achieve all those, you really need to put in a lot of time and effort in the initial stages.

Disadvantages of a Drop Servicing Business

Like every other venture, we will be encountering a problem or two, even in the Drop Servicing industry. Some of which may be due to the competition, believe it or not, you are not the only one into this business.

In the PH, the competition isn’t that much stiff since only a few have ventured into this kind of business. A more pressing limitation in this work is your expertise, as one of my favorite philosophers put it, “the limits of my language are the limits of my world.” You cannot involve yourself in matters you know nothing about. If a client asks for SEO and you outsource someone to do it, the freelancer can simply give you a 5 paragraph essay that is full of errors and plagiarism matches.

Of course, you can’t just submit a half-baked article to your client, because your reputation as a service dropper is at stake.

That is why it is so important to have a basic knowledge of your services offered. In cases when a freelancer’s deliverables fall short from your client’s expectations, you have the tools to modify and turn it into a high quality output.

Remember, you can never be certain of the freelancer you hire. Some might deliver great result today then might just hand you trash on another day. Some might deliver earlier than expected, others might not even comply with the deadline. To avoid these mishaps, request that the client give you at least 3 to 5 days before submitting your deliverables so you have enough time to edit your freelancer’s unfavorable work. In these cases, you will be the cause of your own demise because you wouldn’t tell your client that you’re outsourcing their task, right? That is, if you don’t have a backup plan and an allowance for possible screw-ups.

 

Is A Drop Servicing Business Profitable in the Philippines?

With the age of technology on the rise and the COVID-19 pandemic restraining us at home, we have to innovate ourselves on how to earn more money. Drop Servicing is the new “in” business of this age. Trends in freelancing show an increase indicating the interest of people in this line of work. Anyone can do it, all it takes is some balls and willingness to take this risk in a very crowded virtual world. But then again, not “anyone” might just cut it, you need authority, self-confidence, outgoingness, and comprehension to be an effective service dropper.

The question is, are you up for it?


*Related Posts:

How to Start a Drop Servicing Business in the Philippines

By Ameena Rey-Franc

Recognized as one of the Top Finance Blogs in the PH. Ameena Rey-Franc (founder of TTP) is a former Banker and BS Accountancy graduate turned Blogger, Keynote Speaker, and entrepreneur. Currently an RFP delegate, she is also the Author of a book about Financial Resilience and has held seminars for reputable companies like GrabFoodPH, Pru Life UK, VISA, JPMorgan Chase& Co., Paypal, Fundline, Moneymax, and many more. The Thrifty Pinay's mission is to empower women to LEARN, EARN, and be FINANCIALLY-INDEPENDENT no matter what life stage they are in.

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