Making online money is the most attractive way to earn a living and this is the reason why so many marketers are drawn to it. E-commerce marketing is a big player in today’s marketing stage. And marketers look for ways to earn money online. So, what are these ways that help marketers to earn money online? These are Dropshipping and Affiliate Marketing. And those marketers who are stepping into the digital marketing world will get confused which one is better to start.
But you no need to worry; I am going to distinguish between these two online business models that will help you understand which is going to be more profitable for your business.
So, let’s get started!
What is Affiliate marketing?
Affiliate marketing is one of the oldest forms of digital marketing. In this marketing, you refer someone to any online product and when that person buys the product based on your recommendation, you get a commission. Basically, you are responsible for making sales; you no need to worry about product price or inventory.
Furthermore, it makes possible for you to earn money on product sales without creating products of your own. It’s a good method to generate passive income online.
What is Dropshipping?
Dropshipping is a business model that allows you to buy products individually from a whole seller and ship them directly to your customers. It is basically a method, in which you do not keep the products in your inventory; instead, you work with a supplier who sends the products directly to your buyers.
Furthermore, the profit you get is the difference between the payment you receive from the buyer and the amount you paid to your supplier.
So, before I get into the difference between these two business model, I have to show you some similarities between Affiliate marketing and Dropshipping.
Affiliate Marketing vs. Dropshipping: Similar Features
- Both affiliate marketing and dropshipping allow you to commence business without inventory or shipping goods.
- You will find both models are easy to start working on instantly.
- Both are a comparatively low-risk business model.
- Both provide you high earning potentials.
- These business models allow you to start your business at a low price.
- Both demand similar skill sets such as the ability to create ads, drive traffic to a landing page, and other marketing skills.
Now move on and look at the advantages and disadvantages of both business models.
Affiliate Marketing vs. Dropshipping: Advantages and disadvantages
Advantages of Affiliate Marketing
- You can easily start this marketing business at low cost. The start-up cost is relatively low.
- A good way to earn passive income online.
- No need to worry about creating your own product or shipping a product.
- No need to deal with customer support or services.
- You get payments through the networks with set payment dates.
- You can choose the brand and quality you want to work with.
Disadvantages of Affiliate Marketing
- You don’t have control over products and pricing you’re promoting. And you may not able to mention certain features due to your terms and conditions.
- People can erase affiliate links from sites and go directly to the site you’re promoting.
- You’re basically relying on commission if any sales by you happen only then you will get commission otherwise you’re not part of all the programs.
- You will face a lot of competition in this type of marketing so make sure you build attractive, compelling content and be skilled in SEO.
Advantages of Dropshipping
- You can control the product price and can potentially earn a higher profit.
- Here you are building a brand and not promoting a brand for someone else.
- With this you can get a recurring business order from your customers.
- You can control your customer data so you can re-target and do lots of fun email campaigns to your customers.
- No need to spend money on stock or warehouse.
Disadvantages of Dropshipping
- You have less control over shipping, during shipping and orders; sometimes there is a delay of many days.
- You need to manage customer support on your own.
- Also you need to find the right product selection. It will take you a lot of time to find the best product to sell.
- You need to find a reliable supplier. It might make or break your business.
Which is more profitable: Dropshipping or Affiliate Marketing?
Both affiliate marketing and dropshipping are good marketing platforms, but choosing the right one can be tricky for you. As you can see affiliate marketing is good for startups who don’t want to collaborate with customer support. And if we look at dropshipping then you can run an online dropshipping store that can make you more money than an affiliate marketing website.
There are advantages and disadvantages of both affiliate marketing and dropshipping. It depends up to you what you want to achieve. With the help of our guide, you should be able to find or choose the right business model for you.
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