 So what is a drop servicing agency? Is it better than drop shipping? And is this the best business model that you can start and scale in 2020 and beyond? Hey, what's up? It's Sean Anthony and I talk about the best tools, tips and strategies to level up your business, your skills and your income. So if that sounds interesting to you and you're new here, make sure you go down below right now and hit that subscribe button. So in this video, we're going to be talking about what this whole drop servicing business model is. We're going to talk about why it's such an incredible opportunity right now and how you can start one with literally zero dollars invested and zero experience and scale it to four to five figures per month. So how does this drop servicing business model work? Well, it's very simple. You go out and you sell a digital service to a client, right? Let's just say Facebook advertising in this example and you sell it for a thousand dollars. Okay, you then go once you've got that client, you go and you outsource all the work to skilled freelancers or white label providers or agencies. I'll show you how to find these. You'll outsource the work to them. Let's just say in this case for three hundred dollars. Okay, so now you've got a client paying you a thousand dollars per month for Facebook advertising. You're getting them a result by outsourcing it to skilled freelancers who can actually do Facebook advertising, right? For three hundred dollars a month. In this example, you would collect a profit of seven hundred dollars per month per client. Okay, now, why is this such an incredible opportunity? Well, you can go out and you can get clients for zero dollars and you do not have to have any experience in the service that you are delivering, right? So in this example, you don't have to know how to do Facebook advertising. You can go out and get a client and you can outsource that work to skilled freelancers who do this for a living, right? You can outsource it to agencies or white labor providers that do this and are specialists in it as their main job, right? And you just collect the profit. So you want to think of yourself in a drop servicing business as the middleman, right? And middlemen make the most money. If you think about Uber, if you think about Lyft, if you think about Airbnb, if you think about Expedia, these are all companies who are middlemen, right? They do not own houses. They don't own the cars. They don't own the actual planes being flown, right? They're just the connector between the customer and the person who's delivering the service, right? So Uber, for example, they don't own any car. They don't own one single car. What they do is they connect drivers, right? To people who need a ride. So that's what you're doing. You're connecting people who need a certain service and there's thousands of service that you can deliver. You're connecting people who need a service to the actual people who can deliver it. So you are the connector or the middleman. That's why this is such an amazing opportunity is because if you want to scale to six figures or seven figures a year, all you're going to do is get more clients, right? And once you've found a service that works, that's high value. All you're going to do is keep on getting more clients, right? So let's go into my computer right now. I'm going to show you how to start one of these from scratch. Exactly how I start one from scratch and exactly what you need to start this business and get going very quickly in the next few days. Okay. So let's jump into my computer now. All right. So I'm on growthresponse.io. That's what's on the screen right now. This is my drop servicing agency. Just so you know, I'm legit. I'm not talking about a business model. I don't run myself. This is my actual drop servicing agency called a growth response. Now we do around $350,000 a year in revenue. We started at the beginning of 2018. And what we do is we help be to be startups and agencies. So B2B startups and SaaS companies, software companies, and also agencies like ad agencies, marketing agencies, web design agencies, we help them get more sales meetings with their ideal customers and their ideal clients. Right. Now, how do we do that? We do that through LinkedIn and cold email lead generation. So we, when we first started, we were completely outsourced, right? So we would get clients, we would get B2B startup and SaaS clients. That's actually who we started with. And we would outsource the entire service delivery to another company, right? And you can run your business like that for as long as you want. But for us, we wanted to grow into the multiple six figures. We didn't want to be restricted by someone else's system. So as time went on, we started optimizing our system. We started adding our own things and our own methods in there. And then we created our own SOPs and we hired virtual assistants in-house. So in the beginning, you can get the six figures easy by outsourcing all of the service delivery and spending zero dollars to get started, right? So that's why this business model is so amazing. You can get started with zero dollars. You don't have to know anything about the service you're delivering. You can outsource all of it. And then as time goes on, you can learn and actually add your own method, methods and frameworks into there and create a bigger company if you want to do that, right? But we started off again as a, as a completely outsourced agency. We started bringing people in-house because we want to continue growing and using our own systems. But now I'm going to show you how to start something like this from scratch. So again, growthresponse.io. If you guys want to check this out, just go to growthresponse.io. You can go through my entire funnel here for this business, right? But what we can do now is jump into this Google doc. And I'm going to show you exactly what you need to start a drop servicing agency from scratch, zero dollars, zero experience. Okay. So these are the things that in my opinion, I think that you need to have the best possible chance of hitting those four to five figures per month within the next two to three months, right? Of starting this business. So first off, you need a vertical niche. What is a vertical niche? It's a specific vertical or industry that you are going to be focused on delivering a result through, through your service, right? That's who you're going to be delivering the service to. So why is vertical niche so important? Well, a lot of newbies, a lot of people who are just getting into business, they think, okay, if I just start broad or general and I cast a wide net and see who responds, that's the better way to go. But that's actually the harder way to go because when you go broad and you go general and you don't have a lot of money, you don't have a lot of time. The, the issue with that is you're not going to be able to get the attention of people in a specific vertical or a niche because you're not, your, your messaging is too generic, it's too broad. It's not speaking to anyone in specific. So you need to focus on a vertical niche. If you want to get the attention of them quickly and get them interested in what you have to offer, right? So what do we do? Well, we started off with B2B startups and SaaS companies. So I'm just going to jot that down here, right? So we actually started with this industry. We added agencies later, but we started off speaking only to B2B SaaS vertical or industry, right? So the importance of this, again, is your messaging will be stronger. You'll be able to get clients easier. You'll be able to get the attention of your market because you're very specific to them, okay? And their problems and their pain points. So next you need a service, right? And how do you find a service to deliver? Well, I'm going to create an entire separate video on, on this, like diving deeper into like picking what's the best services, what's the worst services, but anything tied to growth or lead generation or sales or revenue. Those are the best services to offer because it's directly tied to the business owner making money, right? And that's what every business owner wants. They want to make more money and they want to grow their business. They want more cash in their pocket. So if you can have a service that's directly tied to helping them do that, helping them make more money, that's always going to sell the best. It's always going to be the easiest to sell. And it's also, it's also going to be the easiest to talk about when you go out to the market, right? So I'm going to put that here. I'll make a whole nother video on this, I promise. But anything tied to growth or revenue or sales, whatever, or leads, all right? These are always the things that are going to sell the best because every business needs leads and sales and money and they need, they want to grow, right? Otherwise, what's the point of being in business? Okay. So for our example, what did we have? Well, we had LinkedIn lead generation. This is what we started with, okay? Fulfillment. So who's actually going to fulfill the service for you? Now, I see a lot of people on YouTube and a lot of people all over the web talking, okay, you have to do Fiverr only. You only can go to Fiverr and outsource the services to people on Fiverr only. There's so many other places that you can outsource work to that is not Fiverr, that is higher quality, right? Fiverr is one of the places that you can go to do research and find services that are selling well. But if you want to find good, solid fulfillment providers, this is like a very simple strategy that we use, right? So number one, you can go to Upwork.com, right? And there's going to be agencies that are on there. There's going to be freelancers on there, people who deliver the exact service that you have, right? So for example, let me just type in here. LinkedIn, lead generation. Okay. And what I do here is I just turn this US only off. Go to filters, you can go 90% and up. 10K earned. I put English level on fluent. And you can just leave this, freelancers and agencies. Okay. Uh, what else do we want? This is fine to start with, but all you got to do now is look at people who have earned a lot of money. That means they've been on Upwork for a while. They have a high job success rate. And then you can check in to their profile or click on their profile and see what people are saying about them and what they actually do. Okay. So you can read over here what they actually do. They, they have a subscription to these tools. What they actually do is they LinkedIn, lead generation and real estate, real estate, skip tracing specialist. I don't know what that means, but we can look at their reviews here. LinkedIn, lead generation, LinkedIn marketing specialist. So what you want to do is you want to interview some of these people, right? Send them a job application. See what they actually offer. See if they have a system for what you, for what they do in terms of LinkedIn, lead generation. Do they have a certain system or deliverables that they do and reach out to these people. Okay. One of my other favorite ways is this is actually how we got started. Right. So you can just type in something like LinkedIn. Um, white label. Right. What is white label? Were there, they're a separate company that does the service delivery on your behalf without the client ever knowing, right? So they act as an arm of your company. They act as part of your company. So if we just check in here, uh, let's just click on this, for example, this isn't who we used, but let's just see what they have. Okay. So they have white label, LinkedIn, lead generation. Let's see if they, you have to give pricing here. Oops. Okay. So right here, here's a perfect example of a white label provider. Right. So white label, their price is $297. I'm just going to copy this here. Um, let's see what, what are they called? Cleverly. And I'm just going to type in $297 a month. Right. So let's just, let's take a look at a few more. Let's see if there's any more that have, I'm going to copy this first. Okay. So you can see here, these are all the deliverables. This is what happens when you sign up for the service. This is what they actually do. Right. And a lot of them will provide, yeah, you can provide a free consultation. You can talk to them on the phone and say, Hey, what, what's the actual result that you provide for people? What do you actually do? And how does it work? So you can get educated on the service without actually delivering it. You can get educated on it enough to sell it to a client. Right. So I'm just going to copy these. This is the deliverables right here. I'm going to copy that into here. I'm going to do this. Okay. Now what I'm going to do is just take a look at a few more and you want to spend, you know, a day or so doing research. You want to look at, okay, what, what service do I want to provide? Is it going to get a result for them? Who can actually deliver the result in terms of white label agencies or our Upwork Freelancers or agencies? Right. So let me just type in resellers and agencies, see what they got here. I think I saw something. White label. Okay. So they have a video here how it works. I'm going to go here. Okay. So right here, I'm going to copy this and it's going to start at $497 a month. Now what I'm doing here is I'm trying to figure out what do I need to mark these up in terms of price based on what it costs to fulfill. Right. So you can see here I have the deliverables. I have the actual fulfillment provider. What do they actually do in terms of deliverables right here? Here's deliverables. Right. Boom. Copy that into here. Keep it simple. Right. So what do we have so far within like 10 minutes? I have a niche. I picked a niche and I'm going to dive into these things in another video, how you pick a niche, how do you pick a service, how do you dive deeper and find fulfillment providers. But this is just an overview, a blueprint of what you need to get started. Right. So we have our vertical niche. We have the service. We have fulfillment. Here's some fulfillment providers in terms of white label providers and we have deliverables. What are you actually, what's the client going to get as part of the service? Right. So we have all these deliverables here. Now what's the price? A very simple way to price is you can determine whatever margins you want. Right. The main thing is, is the result worth, is it going to be worth that much to the client? Right. So let's just type in this in here. We have 297. Here's what I would do in terms of pricing. I would just do this. This is the easiest way to price. And this is usually how we'll start off pricing if we're going with a white label agency. So we'll go like this. 297 times three. What is that? Well, I'm not good at math. So I'm going to type that in up here. 891. Okay. So I might just say 890. Let's just do 897. Okay. What does this do? Well, you've just 97 divided by 897. You have a 67% profit margin. Right. 67% profits. Right off the bat. You have a 67% profit margin for every single client you sell. So your profit is 897 minus minus 297 equals whatever that is. Right. 897 minus 297. You profit $600 per month per client. Okay. So this is the easiest way for a beginner to price is you find the fulfillment provider. And if they're 297 a month multiply that by three. You now have 67% net profits and you make in this case $600 a month per client if you price based on that 3x rule. Right. So that's the easiest way to start. You don't have to follow this. This is how I'd recommend you start if you have no idea what to price your service at. It's the easiest way to make sure that you have 60% plus net profits. Right. People when dropshipping, people on Amazon, they are they're eating crumbs. They get 10 to 15% profits on whatever they sell. So if you're making $100,000 a month whoopee, you're not making 10 to 10 to $15,000 on that because most of that is expenses and it's not profit. Right. Selling services, it's high value. First of all, it's recession proof. Every business needs services no matter the economy. And number three is super high profits. Right. So you get high value services that you sell to clients for and you get you collect a high profit for that because you're getting a result. Right. Now, is it going to be worth $897 to that client? Well, that's why I say to focus on things that are tied to growth, revenue, sales or leads because if it's tied to that, the business owner will pay for it. No problem if you can get them a higher amount than what they're paying for. So if you can get them more than $897 worth of new leads or sales, right, which is not that hard with a service like LinkedIn lead generation, it's a no-brainer for them. Right. So what we've done here is we have a niche. We have a service. Right. I'm going to highlight these things. So it's easy for you to see. We have a niche. We have, let's just pick this guy cleverly as the fulfillment provider. We have a price that we're going to charge. Right. And this gives us profits here. OK. Now, right here, you have the blueprint for your drop servicing agency. If you want to go out and build a drop servicing agency, boom, I just gave you a blueprint to get started tomorrow. Right. I gave you everything you need. Now, here's how my agency growth response works. Right. So growth response. We sell. Sell at, you know, usually fifteen hundred dollars per month depending on we have different packages and then we outsource it or, you know, delegate two hundred dollars per month. Right. So profit equals thirteen hundred dollars per month per client. How many clients would we need to get the six figures? Well, you'd need nine clients. Right. So let's. Man, I'm so bad at math. One three zero zero times nine. No, you don't even need nine. You would need eight. Nope. Seven. Yeah, we need seven clients. And that would be nine one one zero profits. OK. Super important that you're talking about profit, not revenue. You can you can make a hundred thousand dollars a month in revenue, but you're fixed if your expenses are two hundred thousand dollars in revenue, then it doesn't matter. Right. Which is what happens with a lot of e-commerce businesses. I was an e-commerce myself. That's why I can talk about how bad the margins used to be. Right. But this you have the blueprint now. OK. You can start this business tomorrow if you want it. You can go out. You can pick a niche. You can find a fulfillment provider. You can list out the deliverables that they've already done for you. You can mark up the price to collect a profit of 60% or more. And then you can go out and start selling that service to clients in that vertical niche. Right. Super simple to get this business started. And it's a super high value and evergreen business because businesses will always need services. Right. And if you pick something in growth, revenue, sales or leads, you're always going to be in business because all businesses will need that forever till the end of time. OK. So it's easier than ever to start this business. If you like this video, make sure that you again, make sure you like and subscribe to my channel. I'm going to be posting more videos just like this and other ones on how to get clients and scale your business and scale specifically drop servicing agencies. But I hope you guys liked this video. I hope it was helpful for you. I'll link to a few more over here or over here. But I'll be rolling out a lot more of these later in the future. So this is the video how to start a drop servicing agency from scratch with zero dollars investment and zero experience. And I'll see you in the next one.