Many years ago I wanted to make some money online.
Same like others I read numerous blogs, asked questions in forums and groups to find possible ways to make money.
After my research, I came, across drop shipping and affiliate marketing is the most powerful money making systems.
But no one warned me on some of the dark sides of both the business models.
However, I started my online venture with drop shipping because most of the blogs were supporting drop shipping as the best way to make some easy money. lol
I was successful in drop shipping and then I moved to affiliate marketing.
Now I let me introduce you some of the least disclosed facts most of the bloggers won’t tell you about both the business models.
What is Affiliate marketing
Affiliate marketing is nothing but promoting others products on the internet.
There are hundreds of affiliate programs availiable in the market. When you join with them, for each product you will receive a unique link.All that you need to do is promote the products and drive traffic to the same merchant website. If someone buys that product through your link you will get a comission for that paticular sale.
Most of the time, affiliate marketing does not work as a direct sale. By educating the audience you are encouraging them to buy the product.
Ex: Let’s say you are promoting a DSLR Camera which is on sale in Amazon. What you need to do is using blogs, forums and groups provide some information about the DSLR Camera to the people and provide your link.
On the other hand, in order to promote your products, you can use paid and free traffic sources. Paid promotions are fast like facebook ads, google ads. However organic traffic is slow but steady.
Do You Need a website for Affiliate marketing?
Having a website is not mandetory for affiliate marketing. You can promote the products in other online spaces like blogging sites, forums, facebook groups etc..
But if you are looking for a long-term online business journey and some passive income, I suggest you start a simple WordPress site with blogs.
Affiliate marketing pros
- Less Investment
Compare to most other business models, affiliate marketing needs very less investment and expenses. What you really need to invest is ‘time’. If you are thinking about starting a blog website that will cost you around 50$ per year for domain and hosting.
- This Is a genuine business model and all the companies suport this system.
If you join ‘Share a Sale‘affiliate program you can see most of the world-famous brands like Calvin & Klein, Puma, Reebok are trying to sell their products via affiliate programs.
- You can get Organic Free traffic from the Search Engines.
You need to learn some skills like Search Engine Optimization and start a simple blog. When you are able to rank your keywords in search engines you will have unlimited traffic. And it’s completely Free.
- No Need to handle Customer Service.
When I was doing drop shipping I was fed up with customer complaints. I had to attend their mails and chats. In the affiliate, marketing manufacturer will handle all the customers. so you don’t have to worry about handling complains. Especially regular ladies complain .lol
- Law To High Commisions
Different companies may pay differently..Amazon affiliate pays 4%-9% for their products .But other affiliate programs pay 50% of the sale.
- You Can Scale the business and grow.
If you are succesful with ?one niche then you can move to other niches and promote the products. When your business grows, you ?would need to outsources more staff and bloom faster. Eg: You can hire writers for creating more contents to your website.
Affiliate Marketing Cons
- Need Time
If you are not using paid traffic methods, your promotions will need time. It will take time to rank the keywords and to get recognition in the forums.
- Need Good Effort
This is not something you can make money over night. It needs some learning. Learning to keep your income high.
What is drop shipping
Drop shipping retailer fulfilling method that merchant doesnt keep the inventory.
Once the merchant recieves an order he fulfills it from the third party manufacturer.
Dropshipping is a great way to join with the e commerce business. Compare to other e commecre buisnesses drop shippinng has very law risk. The reason is drop shipping does not require any inventory to maintain and it only requires is an online store.
Even I did drop shipping with Ali express for years and there are pros and cons we need to consider.
Drop shipping Pros
- Less Investment
Drop shipping requires money only for online store and promotions. Compare to other physical businesses it is very less investment.Especially no need to maintain an inventory.
- High Pontential?
If you have a Winning product that can make you lots of money over night.Even by cross selling and up selling you can increase the order value.
- Law Risk
If you unsucceful, you can close the store anytime without any issues.No product stock to take care. My first store got failed and I lost only marketing expenses only.
- Variety Of products
There are hundred of niches with thousands of products that can promote.
Drop shipping Cons
- Not a Solid Business Model
I had a tough time to get payment gateway processor for my store. The reason is those companies do not accept drop shipping as a genuine business model. When they come to know that your business depends on drop shipping, they reject your payment gateway request.
- Promotion cost
Seting up a drop shipping business does not require much money. But the promotion cost is high. Especially if you are going to use facebook it requires money to test hundreds of products. My advice is at least keep your budget 1000$ for marketing from the?beginning.
- Out of hand
Product-related issues are completely out of hand. Because product manufacturer can make many mistakes and you will be liable for that.Ex: Low-quality products, damaged products, etc
- Customer Service
I have dealt with Ali axpress for years and they make plenty of mistakes. In the end, i had to handle the customers. And it was a headache. Sometimes i had to refund the money. Most of the time my customers complained about damaged products, low-quality products and shipping delays.
In order to ship anything from china to the United states, ?it can take 7 to 14 days by e packet services. But some countries do not have e packets service, therefore it can take more than 21 days. Nobody wants to wait for that long after the payment is made.
Affiliate marketing vs drop shipping topic can emphasize different angles. Reason is many people have different success storeis and different ?experiences. According to my experience both the business models can be run succesfully.
If you are a good writer and you have patient, i suggest you to explore the affiliate marketing. But if you need quick success with an investment you can go for drop shipping.
I love both the models. But my favourite is affiliate marketing. The reason is affiliate marketing can bring a steady passive income over time.
Choice will be yours or you can test the both models.
Best Of Luck With Your Venture!