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In this video, we talk about affiliate marketing vs dropshipping.  We will be comparing to see which is better way to make money online and I’ll also be revealing the one thing you absolutely need regardless of which method you choose.
Ok so the first thing you should know is that recent reports actually show that the two most profitable ways to earn money online are affiliate marketing and dropshipping; so that’s great news if you are thinking about making money online with either of these methods…
Either strategy is a viable strategy, so we just need to do a comparison of affiliate marketing vs dropshipping to see, which is the best way that makes the most sense for you and your situation…
So lets get to it…
First, lets make sure we understand what each strategy is…
Affiliate Marketing is simply when you promote other peoples products and you get paid a commission.  In many cases, it can be a high profit low cost business.
Dropshipping is selling other peoples physical products on your own website.  You do not need to carry any inventory because when someone purchases a product from your site, the supplier will actually ship the product directly to the customer.
So when we look at Affiliate marketing vs dropshipping, we will find that they actually have many similarities when it comes to advantages.
For example:
  • Both allow you to start a business without requiring inventory or shipping goods
  • Both are a relatively low-risk business models
  • Both have high earning potentials
  • Both are easy to start working on immediately
  • Both require similar skill sets such as the ability to create ads, drive traffic to a landing page and other marketing skills
  • Both businesses have low startup costs
So lets look a little closer to each, lets start with Affiliate Marketing pros:
Easy To Get Started – Since you are promoting other peoples products,  do not need to worry creating a product or inventory or even setting up a website,
I’ll tell you more of how you can start affiliate marketing without a website in a moment.
But, it easy to start because all you need to do is choose a product and sign up as an affiliate with the merchant
No Customer support – as an affiliate marketer, you do not need to worry at all about customer support.
The reason is you are promoting other peoples products and they are purchasing directly from the merchant so they don’t expect you to provide support.
High Income potential – Depending on your niche selection and your strategy, you have the opportunity to make a high income
and the best part is that you can set it up to be passive income (especially if you focus on an affiliate program that is recurring revenue).
Ok so lets look at some affiliate Marketing cons…
Payments may be delayed – sometimes, you may have to wait 30 or more days due to potential refunds or
just because some merchants may be unreliable with their affiliate programs – so make sure to research the program first.
Affiliate Links May affect conversions – If the potential purchaser sees that it is an affiliate link, they might assume that they will pay more if they buy from your link.
This of course is not true, but you can avoid this altogether by simply using a link shortener, but it is something to be aware of.
No Control over products and pricing
Again, since you are promoting other peoples products, you cannot control anything such as the price, the brand, content etc.
You just have to be careful to follow the terms and conditions of that particular program.
OK so now lets look at some advantages of Drop Shipping
Immediate Payouts – this is a major plus as you can literally get paid right after the customer pays you the retail price from your website.
With affiliate marketing, there is a wait time and there may also be a threshold that you need to reach in order to get paid.
Potential To Earn More – if you want, you can test with pricing and raise the price to potentially earn more per sale.
Re-marketing Your Customers
Since you are selling directly from your website, they essentially become your customers and you can apply retargeting to get customers back to your site and sell. more.
With affiliate marketing, you don’t really have this option since you are sending traffic to someone else.
Lets look at some of the dropshipping cons…
Create An E-commerce Store
Even though you do not need to create the products, you will need to designs and build a full on e-commerce store.
You’ll need to get a domain name, webhosting, design and maintain the website.  This can be costly especially when getting everything set up.
Customer Support Needed – Since customers are buying directly from your website they will look to you for customer support and this can be a huge headache with lots of responsibilities
Little control over shipping
Since you are not shipping the product, you have no control of when it will actually get delivered, yet you will be the one that will have to deal with the customer and risk losing customer and negative reviews.
Ok so as you can see these are both viable options with pros and cons for you to weigh.  There is no clear answer as to which is the better choice because this really comes down to a matter of personal choice.
If you ask me, I would say affiliate marketing is the better choice, but that is only because of the main advantage that is is way easier to get started; especially since as I mentioned that you don’t have to build a website.
Now I know there are lots of affiliate marketers that do build a website or blog and put there affiliate links on there,
but in my opinion, i think it is way easier to do affiliate marketing using youtube – this way you don’t need a website.
Now the one thing that you need regardless of which method you choose is traffic.  You need to get people to see your affiliate links
So how do you get traffic?  Well, the best kind of traffic you can get is traffic you don’t have to pay for and
today you are in luck because I want to tell you about a free training you can get by clicking the link above.
This free training is by an internet marketer – his name is paul murphy and he is making over 52k per month using free traffic.
Now this strategy is great because it will work for affiliate marketing, dropshipping (ecommerce), local businesses it works for anything.
The reason it works is because the strategy shows you how to get your products or services in front of red hot buyers in top of Google and youtube.
I’ve been using this strategy myself and I’ve been betting amazing results in fact, I just made my first $600 sale with this system so I’m really excited about it.
In the free training,  Paul shows you his 5-step system that he uses to get these incredible results. Click the link to access the training.