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Your Guide To Drop Servicing as a Side Hustle

4 minute read

By Katie Ormsby

Drop servicing is a type of business model where you sell services you don’t personally fulfill, combining the benefit of low startup costs with the potential for high profit margins. As a result, it can be a great side hustle. From graphic design to copywriting, this model works for a wide variety of service ideas. If you’re interested in starting a drop servicing business, you can learn everything you need to know with an online search right now.

Shutterstock: Ground Picture

What Is Drop Servicing?

Simply put, drop servicing is like drop shipping but for services. In drop shipping, a business sells physical goods without actually holding any stock. When a customer places an order, the business purchases the product from a third-party supplier, who then ships it directly to the customer.

Instead of selling physical products, a drop servicing business sells services performed by third parties. Your role, as a drop servicing business owner, is to attract clients and then outsource the actual work to freelancers or agencies. The difference between the service cost and your selling price is your profit.1

Benefits of Starting a Drop Servicing Business

The appeal of drop servicing lies in its simplicity and cost-effectiveness. All you need is a computer, internet access, and a knack for marketing. So, it requires a minimal upfront investment. Here are some of the benefits:

Low Startup Cost

Drop servicing is a business model with one of the lowest entry barriers. Since you’re selling services performed by others, there are no production or inventory costs. You simply set up a digital platform to showcase the services, and voila! You’re in business.


The scalable nature of drop servicing is another huge plus. As your customer base grows, you can readily increase your capacity by hiring more service providers. No need for heavy capital expenditure or a larger workspace.


Operating in the digital realm gives you geographical freedom. You can run your drop servicing business from anywhere, at any time, as long as you have a reliable internet connection. So, it could be a good fit if you want to work remotely.2

Different Drop Servicing Ideas

When it comes to drop servicing, the possibilities are endless. But here are a few ideas to help spark your creativity:

Drop Servicing and TikTok

Social media platforms have become vital tools for businesses, especially for side hustles like drop servicing businesses. These platforms offer a vast user base, providing numerous opportunities for entrepreneurs to reach potential customers. TikTok, in particular, stands out as an effective platform for marketing and driving sales.

Recent stats show just how influential TikTok can be in driving consumer behavior. For instance, 67% of TikTok users say the platform inspired them to make a purchase when they weren’t intending to, and 74% of TikTok users say the platform inspired them to learn more about a business online.4 So, TikTok could be a useful tool.

Setting Up Your Drop Servicing Business

Starting a drop servicing business requires a few initial steps. For instance, here are some steps to help you get started:

The Bottom Line

Drop servicing can be an excellent side hustle for those looking to earn extra income. It offers flexibility, scalability, and low startup costs with plenty of potential for profitability. Whether it’s graphic design, digital marketing, or content creation, there’s a drop servicing niche for virtually everyone. Take some time to learn more about drop servicing and discover its full potential.

Katie Ormsby