The great thing about the drop service is that you can usually get 70-95% profit margins on the revenue that you bring in. How do i know? I have run phenomenally successful and profitable drop service companies for the past five years and now spend my time helping hundreds of other people build drop service businesses through my education company The Drop Servicing Blueprint.
In this article, I want to introduce you to the number one most profitable drop service niche and how you can build a business to profit from it and make money online.
The best niche for beginners in this industry has several characteristics to look out for:
- It should be very profitable – You will likely find it difficult to make sales right away. So, you want the sales you make to be as profitable as possible.
- It has to be easy to understand – When you start out, you don’t have that much experience. The simpler the niche, the better it is to get your head around.
- You want it to be easy to sell – If your niche is in high demand and customers need to do it right away, they will be more willing to agree to your terms much faster and you will close the sale without extensive negotiation.
With these three criteria in mind, the best niche for beginners is what is on offer animated videos for technology companies. This niche is super profitable, easy to understand, and in great demand so it’s easy to sell. I personally run this type of drop servicing business. You can find more information on my LinkedIn profile.
Dylan Sigley, how do I start a drop service business?
1. Create your offer
The first thing you have to do is build the business yourself and come up with your proposal. You can do this on popular platforms like Fiverr and Upwork. Joining these platforms is very easy. For Upwork, just go to the website and log in. They can then search for freelancers who offer animated video creation services, compare their prices, how well they are rated, and see some of their previous work to find the best to work with. You can post a job posting and ask them to apply and complete how much they charge per project.
2. Research your competition
You then want to do a search to find your competitors. It’s as simple as doing a Google search of terms like “animated video agency”. This will return a list of the competitor’s websites that you can visit to check their prices. If they don’t have prices on their website, you can ask them how much they charge through their contact form or via email.
3. Set your prices
Once you figure out how much your competitors are charging, you can simply subtract the amount your freelance partner charges to calculate your profit margin. Within this margin you can choose how much you want to charge. The higher you charge, the less sales you make, but these are more profitable – you may have to experiment with different prices to find the sweet spot – but in the end the day every sale will be profitable!
4. Set up your website
Next, you need to set up your website. There is no need to rethink this phase too much. You can find out which of your competitors have websites you like and use them to inspire your website’s design and content – just make sure to edit them in your own words and style! You can use a great website building tool like Divi, which costs only $ 89 a year. You also need to decide on a name for your business and purchase a domain name for it. Domain registries like NameCheap only charge about $ 8 for a domain name. You can also set up a LinkedIn Page for your business, which can be another source of revenue.
5. Market your service
Your next step is to find tech startups that can sign up as customers and make sales. One of the best and most affordable ways to market your business is through online directories like CrunchBase. You can search for startups and find their contact information like phone numbers and email addresses. You can then reach out to them (or one of your assistants) to make a phone call or email your pitch. The aim is to present your offer to the decision-makers of the companies you contact. The more urgent and important you can be to your offer / pitch, the better – you want potential customers to agree to hire you quickly, not take long and go through a long process. This is when you can get creative with your copy and test many different pitches. Don’t be afraid to be different to help you stand out from the crowd, but at the same time you can also see what works for other companies and emulate the best parts of their work.
6. Deliver your service
Once you have made a sale, the best thing to do is to design and send the customer a questionnaire to get all of the relevant information you need to give your freelancers to create the animated video. Your freelancers go through the production process by first scripting the video, then creating a storyboard, then doing voice over work on the video, and finally creating the animation required to complete it. On platforms such as Upwork, Fiverr, PeoplePerHour or Freelancer, you will find high-quality scriptwriters, speakers and animators.
Once the project is complete, you can send it to the client for review and make changes if requested. It’s about making sure the customer is happy. Try to get 100% prepaid, but if you can’t, ask for 50% upfront and 50% after the project is complete. You can use various online payment platforms such as Stripe, Paypal and TransferWise to receive payments.
Ok Dylan Sigley, what’s the bottom line here?
There you have it! These are the steps you need to take to start your own drop service business. Animated videos for startups are the most profitable niche in online services, which is why I recommend them to all beginners. Take the first step in your journey to owning and operating a profitable online business today. Your life in freedom is only a decision away. Visit the Dylan Sigley Facebook page to learn more about drop servicing.
Dylan Sigley is the founder of Dropservicing Blueprint. His course helps hundreds of people around the world start their own online businesses. Prior to creating the course, Dylan Sigley built his own drop service businesses which enabled him to gain financial freedom and travel the world.