New business models spring up yearly that companies can use to expand their customer reach. One of these new models that you certainly want to explore is drop servicing.? Let’s find out how it works and how Virtua Solutions can help you get more out of it.
What Is Drop Servicing And How Does It Work?
At its most basic, drop servicing is a business model wherein you offer digital services to clients. You then delegate these services to third parties like freelancers and agencies. Earnings come after paying for the third-party service.
Image from LinkedIn.
That might look similar at a glance to general outsourcing. But there is one key difference: the beneficiary of the service. With outsourcing, your company itself is the one who mainly gains from it in the form of service enhancements. Customers might not readily feel the presence of third-party providers.
In the case of drop servicing, clients themselves benefit directly from the service. You essentially become the mediator so customers can get access to third-party services. Besides that, you also strive to improve the quality of these services as they are delivered.
Why Go With Drop Servicing?
One thing you might wonder at this point is why go with this business model. Here are some of the benefits you can gain from getting into this type of business.
Low Startup Costs
One of the biggest challenges of setting up a service business is getting the right talent for the job. Hiring that talent will cost a lot of money for you. But in this model, you reduce that cost in your initial budget since you can factor it into the price your clients pay.
No Specific Skills Needed
Another area that drops servicing can address is the skills gap. You do not have to go on a specific hiring run to find the right people. Instead, you can go with agencies that can provide different niche talents. That option makes it easier for you to launch your service.
Better Client Diversity
Image from Provide Support Blog.
At some point, you would also want to expand your business to new clientele. Drop servicing makes that expansion a lot easier. You don’t have to do everything from scratch for every new customer segment.
Building Your Drop Servicing Business
Of course, while drop servicing is an enticing venture on paper, it still requires the right approach. You need a clear niche to get into. Consider your current business ventures and see how a drop-servicing business fits into those. If your main business is related to the graphic arts, then a drop servicing business related to it will fall in much better.
That doesn’t mean you can go into a different niche. It can even give you more opportunity to expand your reach. But you still need to understand how it works before branching into it.
Building Your Brand
Once you have your chosen niche, it’s time to build your drop-servicing brand. Think about how to distinguish yourself from other businesses offering the same services. Don’t just focus on the price. You also want to emphasize other details like the actual service quality you offer and what other services you can offer.
Image from Tekki Web Solutions.
Another integral component you should focus on is the network of service providers who will be under your wing. You want to develop that network so you can readily deploy providers to meet client needs.
Virtua: Your Drop Servicing Solution
With all that, you also need the right infrastructure to better facilitate your drop service. Virtua is ready to provide that solution for you. We can help you cover the business’ operational requirements faster and ensure that your clients are satisfied.
Providing The Talents You Need
As mentioned, you want to have a good network of providers for the service. Virtua is ready to provide you with that talent. We maintain a roster of agents ready to do the tasks you need. That can range from technical tasks like web design and database management to customer-facing duties.
On the other hand, you might also need services that are not within our current repertoire. Do not worry, as we can also bring those in. Virtua continuously expands our talent pool to include new roles our customers might need.
And if you have niche needs, we can also do a custom recruitment process for you. We can guide you in creating a better engagement strategy for the freelancers you want to get. That ensures you are getting only the best candidates for the position.
Providing Additional Support
But that doesn’t end here. Another challenge you will face when running a drop-servicing business is managing the different teams. Virtua can also be a lot of help for you here, as we provide you with the management support you need.
With talents you source directly from us, this comes as part of our internal management. When you sign up with us, we assign team leaders who are responsible for distributing the tasks to our agents and reporting back to you. We ensure transparency of the process so that you have a clearer idea of what is happening.
We can extend those management duties to other freelance teams that you might have under your helm. That frees you to focus on engaging clients and bringing them into your fold. Rest assured that we will also ensure stringent quality control for these teams.
Bring More Services To Your Clients With Virtua
When done right, drop servicing can help you greatly expand your business reach and bring in more clients. Virtua is always ready to help you with the right solution that will get more out of this model. Contact us today and let’s get started delivering great services.