Service arbitrage is the process of buying and selling services and making money from the price difference.

Let's Assume you are offering a service to a client for an amount (say 150 dollars) offering a service to a client for an amount (say 150 dollars). Then, hiring a third party to offer the service to the client at a cheaper cost ($80) and then making the extra money without the customer knowing that you had outsourced the task. Drop servicing is quite easy. You offer digital services at a mark-up and then outsource your work out to contractors at less. You are basically an intermediary, connecting buyers of services with the provider.

Drop Servicing in contrast to Dropshipping:

If ever heard of dropshipping before, this is the exact same concept. Dropshipping is the process of creating an online store that functions as a middleman between a physical producer (e.g. an industrial shoe manufacturer) and the customer (e.g. a shoe buyer). Customers purchase your online store for an additional cost, and then the manufacturer sends them their product. With drop service, customers purchase services from you for an increase, and your freelancer is responsible for the job.

If you find this video useful, please subscribe like, comment, and share it.


https://www.youtube.com/watch?v=CJB2HSl-0KU