Tips on Choosing Between Affiliate Marketing Versus Drop Shipping
Tips on Choosing Between Affiliate Marketing Versus Drop Shipping
Many people today are comparing affiliate marketing versus drop shipping and wondering which is better. The truth is, both of them have their pluses and minuses. Here is a look at each to help you decide which is right for you:
Affiliate Marketing
Overview
This is where you promote other people's products and get a commission for each one sold. In most cases you generate traffic to the affiliate offer by including a link on your website, although in some instances you can direct link to it from an article or a pay per click ad.
Benefits
The main advantage of this method is that you do not have to worry about customer management. After all, if the company does not get the product to the customer on time, that is their problem, not yours. Also, you do not need to go to the trouble of building a good converting site to sell the product. That is the vendor's issue. Your only job is to get the visitor from your site to your affiliate offer.
Also, you do not have to stock any products yourself. Therefore, many people prefer it because of the minimal labor requirements.
Drawbacks
One of the main disadvantages of this is that you cannot make money on any backend items. After all, once they leave your site and click through to the affiliate site, they are usually lost to you forever. Therefore, even if they do buy the initial product being sold, they will not benefit you anymore down the road. Therefore, when comparing affiliate marketing versus drop shipping, this is a huge thing to think about.
Drop Shipping
This is where you market a wholesalers product through your own website. You do not have to worry about stocking or shipping the item, however, because the company handles this for you.
Advantages
As with affiliate marketing, there is nothing to stock, which means you do not have to worry about shipping. However, the main benefit of this method is that you get to keep marketing to them after they buy. This is because whenever someone buys a product, they automatically leave their contact information when paying. Therefore, you can keep marketing to them and selling them more items down the road.
This might not seem like a big deal, but it is huge. Your current customers are always going to be your most profitable ones because they are proven buyers. Building a customer list is the single most valuable thing you can do regardless of what you are selling, and for this reason it has a huge advantage over affiliate marketing in this regard.
Drawbacks
The main negative about drop shipping is that it requires a lot more effort than affiliate marketing. After all, you have to build the site to sell the wholesaler's products. Also, you are the one held responsible if the wholesaler does not ship the product on time. With affiliate marketing, you are not held liable for this.
The Bottom Line
When comparing affiliate marketing versus drop shipping, both methods have their pluses and minuses. Drop shipping offers much more long term income potential, but affiliate marketing is better for beginners as it helps them learn marketing skills. Therefore, which one you choose really depends on where you are at in your marketing career.
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