Today i’m going to share a genius side hustle that can help you make tons of money.
This could actually be one of the best side hustles I’ve ever seen.
I’ll give you a little backstory on how I came upon this. Remember if it’s not for you, you can check out this huge list of 70 other ways to make extra money in 2023.
The stupid simple side hustle is basically called Drop servicing or service Arbitrage.
Last week I was looking for tutorials on how to make explainer videos. I did some random google searches which led me to this website – that shall not be named – so let’s call it WebA.
Web A has fantastic explainer videos on its home page. They offer a video making service. Infact they can create any type of marketing video for you but charge upwards of $800 for videos.
Just then I noticed another google search result where WebA was mentioned – but this time, as an example of a successful ‘drop servicing company’.
Naturally, I got curious.
So what did this mean?
Apparently WebA has identified a group of really good fiverr video creators and illustrators who charge <$50 per video.
WebA then created a company offering video creation services to businesses.
WebA charges anywhere from $800 – $2000 for a single video. WebA has a very professional looking website that oozes of credibility. The website is filled with really good sample videos. My guess is that these videos are from previous jobs. But at the start it would be samples from the fiverr creators.
When a company books WebA to make a video – WebA outsources to the vendors on fiverr for $50 (or more) and keeps the excess.
WebA is acting as a middleman! Not doing the actual work (which is why I call it a lazy side hustle) but making tons of money from clients!
This is called drop-servicing! and it is very lucrative if you find the right service.
Here is how it could work for you:
Step 1: Find a service people are in need of. Writing blog posts? Social media management? UGC content creation, Website design.
Step 2: Head over to fiverr and find someone who can deliver on the service. I’ld recommend you first test the sellers skill with a sample job. You will need to invest some little money here.
Step 3: Then, create a website or landing page for the service. A professional looking website or landing page is essential to attract high ticket clients and to build trust.
Step 4: Set your service prices. From my little research, depending on the service, you can charge anywhere between 2x-10x (of the cost of the service on fiverr) to make it worth your while.
When you get booked, you outsource to your tested and trusted freelancer on Fiverr.
Boom! You have your drop-service business up and running.
You can market your business on social media. You can advertise your service for free in Facebook groups or, LinkedIn. You can pitch your service or directly to businesses who may need it.
FAQ’s about drop servicing
- Should you tell the Freelancer about your agency service or do you pretend to be repeat costumer? Based on my research, it’s in the best interest of any solid business plan to be transparent with the freelancer. You’ld also need to take permission from the freelancer to obtain sample materials you can use on your website or when pitching to clients.
- Will a freelancer demand more pay if they find out how much you actually charge the client? It’s possible. However, the general sentiment is this – you’re bringing clients to the freelancer, and the freelancer is getting paid what they normally charge – so they should not have a problem with your business model.
- Do you need to have skills for the service you offer? No, you would not be providing the service yourself so you do not need any specialised skills or expertise.
- What are some ideas that would work for drop servicing? Virtually every service offered on Fiverr.
- Social media management
- Website design
- Website development
- Graphic design
- Blog writing
- Video editing
- SEO services
- Online course creation
- App development
Is drop servicing a good side hustle to make money?
This is clearly not a new business model. Middlemen have existed for ages.
I’m convinced this has the potential to bring in a 6 figure income. Simply because it is scalable, and you are not spending any time doing the actual work.
I think it’s genius.
I’ll be trying this soon because I have a number of ideas in mind that this could work for. So if this piques your interest, be sure to follow along for updates.
What do you think of this idea?
Is this something you’d try?
Do you see any potential problems with it?
I’d love to hear your thoughts in the comments.