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Drop Servicing vs Drop Shipping? What’s the Best Way To Make Money Online?


– How to make money online
buying and selling services. That’s right, today we’re gonna be talking about drop servicing,
which is a terminology that’s really blowing up right now, and people have been asking,
“Like, does this really work? “Is it scalable?” And today, I’m going to be showing you exactly how I would go about it, and I’m going to be showing
you exactly the tactical aspect of it so that you will be able to do and implement these
steps, which is basically a business model that is really
blowing up right now, so. (upbeat music) (chalk scratching) Let’s talk about, first of
all, what drop servicing is. Drop servicing is very
similar to drop shipping except that rather than selling a product, you’re actually selling a service instead. So, if you take a look (tapping marker) at the
traditional drop shipping, you’ll see that drop
shipping works like this. (tapping marker) You open up a store, and whenever a order comes in, (tapping marker) you go to
the supplier, and the supplier is notified of the order,
and once that happens, the supplier would then
fulfill the request of this sale over to the customer, (sliding marker) and the
supplier will deal straight with the customer in terms of
the fulfillment, the shipping, the warehousing, and you
don’t deal with the shipping and logistics of it all. Now, if you take a look at
drop servicing, drop servicing is a very similar thing
except that it’s not products, but it is actually services. Now, let’s talk about the profitability and how you can actually
make money doing this. Now, in order to make money doing this, (rattling laptop) again, we’re
gonna be going real tactical in this video, okay, so, in
order to make this happen, but in a form of services, let’s move over to my laptop
right now, (rattling laptop) and I’m going to be showing
you the different platforms and different tools that you require in order to make it happen. The first place that I’m going to, this website, Fiverr, okay. So, Fiverr, together with
Upwork, we’re gonna take a look at these two sites first,
are two great sites to look for freelancers and people
who are willing to do jobs at a very inexpensive price,
and on Fiverr, there are a lot of different skillsets that people offer, from doing graphic design,
logos, illustration, cartoons and comics, game
design, package and labeling. So, this all just in a design department. For digital marketing, there’re all these different
skillsets over here, same thing for writing,
video, and animation. Now, the first thing that
I want to be able to do is I want to be able to
see if there is a demand for these different skillsets on Google, and if so, how high is the demand? ‘Cause this right now is the supply. So, understand that right now, this is the supply of these services, and the services are available
on Upwork and Fiverr, where people are supplying these services. (tapping marker) So, the next
thing that I want to be able to see is if there is a demand
for this (sliding marker) so that I can determine if this is a good market to go into. This is just simple Economics
101. (tapping marker) So, in order to determine the demand based on this supply that’s available, I want to be able to see
how often these keywords are being searched for. (rattling marker) So, right now, what I’m
going to do is I’m gonna go to Google Keyword Planner. I wanna be able to discover
new keywords, right. So, this basically how
often people are searching for this keyword. I’m gonna change this to actually global. I wanna be able to see
what is the global demand for this certain keyword? We talked about the
podcast cover art, right. So we notice, there’s a
lot of people putting out their service on Fiverr,
and you can see roughly, the demand is not bed. There’s, like, over a thousand orders, for this guy here over a hundred, 401. All I’m gonna do is I’m
gonna Keyword Planner, I’m gonna type in podcast cover, and I’m gonna click on
Get Results, and now, notice that I can actually see the demand for how often people are searching for. So, right now, I can actually see that this podcast cover art, there’s 1,900 people searching
for it, and it cost me, if I were to bid on Google
to rank on the first page of Google AdWords, $3.45. The competition is low, and all these are the
different variations. Apple podcast logo, 1,600,
iTunes podcast logo 480. So, I could be potentially bidding on all these different
variations and cover this demand, so notice that it’s super-niche. It’s really, really niche. And by the way, this just one, okay. This could be a book cover design. This could be for a brochure design. This could be for designing
menus for restaurants. This could be, like, a lot
of different things, right. It could be SEO for a local
restaurant, right, so, all I’m doing is I’m nicheing it down to one very specific thing, and let’s just roll with this example. So, right now, notice that we have covered both the demand and supply. We have seen what is the supply (tapping marker) of this
specific skill set on Fiverr. (tapping marker) We have
determined what the demand is for this specific keyword
on Google to make sure (tapping marker) that the site
or store that we wanna build in order to capture this
demand has sort of demand. So, ideally, here’s what we want. We want to have something
that has got high demand, but low in supply,
(tapping marker) in order to create the store,
okay. (rattling marker) Now, to create the store,
super simple, (clapping hands) there are a lot of different page builders and funnel builders out there. If you watch my other videos, you will know that the
one that I love to use that’s super-simple is
actually called ClickFunnels. Now, ClickFunnels, we have built
a lot of different funnels, and one of the things
that I am going to do is you can easily build this
funnel in order to create a sales process that sells this service, so all I’m going to do is I’m
gonna create a sales funnel. I’m gonna call it my service funnel for, what did we decide on? Oh, the podcast cover, right? So, all I’m gonna do is
I wanna built a funnel. It’s a super-simple process, and while we’re waiting
for our ClickFunnels to do their magic, by the
way, all I’m going to do is if you don’t already have ClickFunnels, I’m going to leave a link
down below so that you can get a 14-day trial but also
many different Share Funnels that you can utilize
these different templates to help you get started, but
ultimately what I’m going to do right now is on ClickFunnels, I’m gonna create a sales process. Now, without going
through the boring stuff, which is like the tech,
I’ve got other videos that explains all of that, (tapping marker) all I’m really doing now is I am doing a very, very
super-simple sales process, which is basically this. (tapping marker) I’m
gonna set up this page that sells this service. (tapping marker) This service
is for the podcast logo creation service, and this
first step is basically the sales page. Now, the next thing I can think about is maybe I can add in some upsells, and a great way to look at
what upsells would look like is let’s take a look on
Fiverr if there are upsells. I’m back in Fiverr, okay. I’m taking a look at the guy
with the most, she’s at 5.0, over a thousand orders,
and designs look amazing. So, they cost $10 for the basic package. Let’s take a look at what
the, his upsells are. Custom background featuring
two to four podcast members if you want different faces. Okay, so, let’s say I take
the basic, and if I continue, you can see that it’s,
it’s $10, super-affordable. So, I could have optional upsells. Okay, you can think of one. What makes a great upsell is always like the next thing they need. So, I would think about
an upsell, but, or, even if I don’t have one, this thing here could be, for example, (tapping marker) like $100,
which is still considered cheap for an amazing design. Let me just put it here (tapping
marker) in optional upsell. Pause one second. I know what you’re thinking. You’re thinking, “Peng Joon,
this doesn’t make sense. “Why would somebody buy from me for $100 “when somebody can get this
podcast logo done on Fiverr “or some other freelance
site for $5 or $10? “That doesn’t make sense.” Fair question, and the way to answer that is the same question as drop shipping as well as how products are
sold on Amazon or Alibaba, AliExpress, and the question
I’d like you to think about is why do people buy stuff on Amazon and pay Amazon pricing when
potentially there could be the same product that
is sold on AliExpress direct from China a whole lot
cheaper, same exact product? Why, because many people assume that the market has perfect knowledge, meaning they know exactly which site has the cheapest product at
every given point in time, but that’s not how the
market really works. Why do people search on
Google and look for websites that sell this service when
they could get it on Fiverr? Well, number one, not
everybody knows what Fiverr is. Number two, you’re assuming
again that people know what Upwork or Fiverr is, and you’re assuming perfect knowledge. When most people, again,
could get something cheaper from AliExpress, why
do people go to Amazon? Because most people don’t
have perfect knowledge. There’s always somebody out there that’s willing to sell cheaper. What if right now, the next thing you do is you utilize a page-builder
or a funnel builder like ClickFunnels that allows you to build these pages really easily? When you build these
different pages, super-simple, (tapping marker) put in a
logo, very simple design. Utilize the templates that I give you as well as what ClickFunnels give you, and once you claim this page-builder, (tapping marker) the next thing you do is you need to drive targeted traffic. So, the Google Keyword
Planner has already given you the demand for all
these different keywords every single month. So, for example, this keyword
here called podcast cover. I’m just gonna put in podcast cover. You will notice that right now,
so, for example, over here, there are no ads right now
running for podcast cover, and I can see that if I would like to have my ad right on top,
okay, you can see that this just an additional tool that I use
called Keywords Everywhere. 1,600 searches for this
keyword a month cost me $1.59 to get a click to my website. Imagine this: so, before I even begin, let’s talk about the
math involved in this. So, if it cost me $1.59
(tapping marker) to get a click, we want to estimate roughly
what is the conversion of this page if we sold it at, say, $100? So, let’s say I started
bidding on this keyword so that Google serves my website called awesomepodcastlogos.com. So, let’s say I built this funnel, and I built it on this
keyword so that my website and my sales process
rang on the first page for the keyword podcast logo. So, right now, I’m paying
$1.59 for each visitor, so that means if I wanted
(tapping marker) 100 visitors to come to my website,
it would cost me $159. Now, I know from experience
that a $100 product, it is possible to get a 3% conversion, so that means if I can get a 3% conversion (tapping marker) on a $100 product, which isn’t being overly optimistic. It’s being conservative, and by the way, this is targeted people. This is not cold traffic based on interruption marketing on Facebook. This is literally (rattling marker) people that’s searching on Google,
typing in podcast cover, podcast cover art. So that, there’s that
intention over there, and people are searching for this. Do you think it’s fair that 3%
of people would be interested in this $100 service? So now, you set up this
page, and if you could have a 3% conversion, (tapping
marker) you would have made $300 over here. So in other words, you have spent $159. At a 3% conversion, you
would have made $300, which, by the way, does not include the fact that you have to pay this guy
on Fiverr, how much was it? $10 per gig. So, you have three gigs. (tapping marker) You have now
have to include the cost of, (sliding and tapping marker)
he’s charging $30 per gig, so it’s now $189, so now,
this is simple arbitrage. This is spending the $189
to acquire three customers and getting three sales,
which is $300 in sales. Just think about this. How can you scale this? Imagine if you were to
really own this category, and this is just one category,
by the way, podcast logos, and this is, by the way, just one keyword. What if you were targeting other keywords like iTunes podcast logo,
which has got 480 searches? What if you were to
target super-niche ones like podcast logo ideas? Podcast artwork, over a thousand searches. So then, what if you were
to kinda target this thing, but remember, this does
not include your upsell. Just think about, like, what
is the next thing they need? That’s what makes a great upsell. The next thing they need
could be, I don’t know, this could be some sort
of podcast launch service. Like, literally I would
go on Upwork again, and I would take a look
at (marker clattering) the different podcast
services, so the logo is one. Take a look at this, this
is, “Our studio will set up, “launch, and scale your new podcast,” but this guy’s charging $2,500, so that’s, that’s a little bit too much. (clattering marker) A podcast
launch, so that’s literally how I got my idea, perhaps
that this guy here that says, “I will launch your podcast “and help you grow your podcast for $50.” There’s this guy who’s
charging $500 for it, so there’s not enough margins,
but I will take a look at this guy, 5.0 rating, five
ratings, okay, so I will want, be able to see what he does
and what’s included in here. Okay, but, but guess what? So, all I’m doing
(tapping marker) here now is I’m just seeing, again, this upsell, what is the next thing they need? Could potentially be (tapping marker) a podcast launch service. Now that you have your logo design, I know that the intention
is to launch this podcast. If you brand this new
company that you have as a company that helps
people create this podcast. Not just the logo, but
launch them, optimize it, and strategize on the keywords and map out your first 10 podcast ideas: titles, transcription, I don’t know. This could be a one-time launch (tapping marker) of
$1,000 for this service, or it could be some sort
of recurring that says, “Look, every month I’ll
help you optimize five, “10 podcast titles, transcribe
it, upload it to SoundCloud, “embed it on your website,” (tapping marker) and this could be a $500 per month thing, right? So, now, this is just
arbitrage, buy low/sell high, except that the difference is on a service rather than a product. Once you have built this up, how do you continue scaling this, okay? So, imagine if you wanna brand and position this new business
of yours as the authority, as the only logical choice
in the world of podcasting, what could you do next? Again, remember, you’re
building a sales process, so your sales process could
be the step before this, before you send them (tapping marker) into the podcast sales page. This could be a simple
(tapping marker) opt-in page where you give away something
for free in exchange for their name and email so
that you can build value. You could utilize before you send them into the podcast sales page. So, for example, this
could be a checklist, this could be a free report,
this could be a template that says, “Seven Common
Mistakes People Make “When It Comes to Podcasting. “Enter your name and email below “to download this free report.” It could be the 17-point checklist in order to optimize your
podcast every single time. In order to really blow
up this sales process to maximize every single lead that you are getting from Google. And this is where, again,
if you do a good job here acquiring a customer, this
is where you can continue. Maybe there could be a
recurring after this. So, now understand that over
here, you’re spending $189, and you’re getting back
$300, which is pretty decent for a $100 sale. But remember, the money could be here. What if 25% (tapping marker) or 30%, or one-third of every customer that buys this upgrade
to your $1,000 offer. So, if you have a 33% return,
remember you have three sales over here, that means
one person would upgrade, and if you do a good job here, (tapping marker) this would
add $1,000 to your bottom line. So, that means now, in order to spend $189 to secure three customers,
together paying off your vendors and your suppliers, which
is the service provider, you will be making $1,300. And remember, this doesn’t end there. If you are doing a good job,
and they keep coming back to you, you could have a recurring. And this is literally how you
can have a full-fledge agency that specializes (rattling
laptop) in that one thing. Now again, remember, this one
thing doesn’t necessarily need to be a podcast logo. This could be an SEO agency for specializing local restaurants. This could be designing menus. Again, do your due diligence in here and see what’s actually hot. (clattering laptop) Just
notice the supply together with the demand, and that
is how you build and grow and scale a profitable
drop servicing business. Hey, this Peng Joon’s here. Let me know in the comments below what your biggest takeaway is, what you liked from this
video, and as always, I always want you to implement. Don’t let this video to be
one of those many videos you watched and did not do anything. Remember to claim the templates below. Start building this for yourself, and if you like videos like
this, make sure you click on the Subscribe button to
be notified of future videos.

Norman Bunn

17 Comments

  1. Amazing video bdw, when are you going to drop a video about finding buyer audience !!!

  2. Which business model is for you, drop servicing or drop shipping? What’s your biggest takeaway? Share your thoughts with me in the comments below.

  3. Drop shipping, tns tutorial video, great video n tns PJ.
    PLS read. replied email! πŸ‘πŸ’―

  4. There's always so much golden nuggets you give to us and I'm so looking forward for more when I see you next month for your Gamechanger Intensive πŸ’ͺ I'm already in Dropship products but now I'm going to do this Dropship service πŸ˜‰

  5. This was pure gold Peng Joon. I don't believe people understand what you have given us today. You are an inspiration my brother. Keep it coming!

  6. I think I need to watch more videos of Peng Joon for me to understand what he is saying πŸ€”

  7. Nice to meet you. @Peng Joon
    However Mr. Joel Bauer is going to Singapore country.

  8. Drop shipping ,if i will try I will do choose a design service and ,I have some doubt ,but until I open the page ,I can be sure ,I will ask .if I m not able to do a step

  9. Just came across your channel, and this was the first video I watched from you and I gotta say it was packed with value. One of the best videos on the topic! Subscribed and will be looking forward to your future videos! See you at a future Funnel Hacking Live event! Cheers! πŸ™‚

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