subject: Affiliate marketing v/s drop shipping which is better? [print this page] Affiliate marketing v/s drop shipping which is better?
In today's economy everyone is trying to find a way to make money on the internet, and everywhere you look their is someone with the next great idea, but which one will work, or more importantly work for you ?
Two of the most popular ways to make money online are drop shipping , and affiliate marketing. Affiliate marketingis a where a business will reward one or moreaffiliatesfor each visitor, or customer brought about by the affiliate's marketing efforts.
Some companies will reward you with cash, or gifts, for the completion of an offer, sale, or the referral of others to the site. The affiliate industry has four main types: the merchant, or retailer, thenetwork, the publisher (or 'the affiliate'), and the customer.
Many people have been very successful with affiliate marketing programs, and they are even used by larger companies. With affiliate marketing you generally have one main job to do, and that is to get your affiliate links to relevant customers that are looking for the items that you are promoting.
Once the customers click your affiliate link, or enters your promo code they are taken to the merchants website where they will hopefully make a purchase. A few of the advantages are no inventory to worry about, or customers to deal with this gives you more time to focus on advertising, and promoting your links. Some of the down falls to affiliate marketing are; From an affiliate standpoint you don't usually get paid on every sale right away. Most affiliate programs have at least two weeks to one month lag time.
For example all sales made in January will not be paid until February or even March depending on the program. Another down fall to affiliate marketing is that somedishonest merchants can close down their program without telling the affiliate and even worse, without paying them their due commission. While their are some disfavors affiliate marketing is still a great way to make money online.
Drop shippingis where you will sell another merchants products on your own e-commerce website, or online shopping site like eBay, or Amazon. With drop shipping you will acquire the products at a wholesale monetary value from the manufacturer, distributor, or wholesaler, and then sell them at a retail price to your customers. Your net income will be the difference in the price.
Some of the advantages of drop shipping are that you have complete control over the pricing. This allows you to create your own potential profit instead of having it predetermined by someone else. Another advantage of drop shipping is that you will be spending your time promoting your own business instead of someone else's.
Some of the disadvantages are having to deal with customers, and returns. Returns can cut into your profit, and you have to be careful not to spend your profit until you are sure the customer is completely satisfied with their purchase, or until the return period has expired. Another disadvantage could be high-risk items, and slow shipping from the supplier.
If you are considering drop shipping you should make sure you have a reputable drop shipping wholesaler to source your products from as a bad supplier can destroy your business. While both drop shipping, and affiliate marketing have their advantages, and disadvantages their is no clear winner as to which one of these venues are better. It is just a matter of personal judgment, as you can truly be successful with either programs if you take the time to learn about the program, and stick with it.
