is affiliate marketing better than dropshipping
Published on: February 1 2023 by pipiads
Table of Contents About is affiliate marketing better than dropshipping
- Dropshipping vs Affiliate Marketing | Which One PAYS More??
- Affiliate Marketing VS Dropshipping - Why I Shut One Of These Businesses Down!
- Affiliate Marketing Vs Shopify Dropshipping (Which Makes More Money?)
- Dropshipping Vs Affiliate Marketing - Which Is Best For You
- WHY AFFILIATE MARKETING IS BETTER THAN DROPSHIPPING | Business Analysis
- Affiliate Marketing vs Dropshipping | Which is More Profitable in 2022?
Dropshipping vs Affiliate Marketing | Which One PAYS More??
in today's video i'm going to help you decide if you should drop ship or if you should do affiliate marketing. we're going to compare the earning potential, the cost to start and the amount of work it takes before we get into the video. if you like videos about winning products, drop shipping, shopify themes, apps and tutorials, do us a favor and hit that subscribe button and turn notifications on. now let's get into the video. alright. so first off, let's define the two really quickly. with drop shipping, the appeal is that you don't have to invest in inventory how, because what you do is you find a product or products through a website like aliexpress. these products are generally really inexpensive. then you create a shopify store, post that product on your store at a marked up price, advertise it and then, when you make a sale, you then communicate with your aliexpress supplier, which is usually done pretty automatikally through an app. you pay them for the product at that cheaper price, supply them with the customer's address that they entered in on your website, and then aliexpress sends the product to your customer. so no upfront investment in a product, unless you order one for yourself to make videos, but otherwise the only time you pay for a product is after you've already made a sale. affiliate marketing, on the other hand, you don't create a shopify store because you aren't selling the product at all. someone else is. so if this affiliate program is the amazon associates program, how it works is you advertise whichever product you want to, but rather than sending the customer to purchase the product from your own store, you send them to someone else's amazon listing and you earn a commission from that sale. there's more to it which we're going to get into, but that's my brief overview. all right, let's first tok about how much it costs. to start for drop shipping, the first thing you need is a website to sell your products. a shopify store is going to cost you 29 a month. the second thing you need is a custom domain name. you get a free domain name when you sign up with shopify, but i don't recommend using that. it's going to deter people from buying from you. a custom domain name looks way more trustworthy and professional. a domain name is going to cost you anywhere between nine dollars and seventeen dollars a year if you purchase through shopify. for this example, just to keep it simple, we will say that the domain name is going to cost you 14 a year. the last expense i would personally recommend including is the cost of the product you are selling. some people don't buy the product themselves and will just use photos and videos from aliexpress. this can work. in fact, it can even look super professional if you use in video, but i do recommend purchasing the product yourself if you can. this way, you can create your own videos and make yourself stand out against your competitors. all right for drop shipping. our total is 30 and 42 cents per month. that is the cost of a website and a domain name. per year that works out to 362 dollars. and then there's the unknown expense of the product, and that really depends on what you choose. now, this is just the bare bones- get started kind of estimates. down the road, you might decide that you want to purchase an app to make your processes faster and more efficient, or you might want some money towards advertising. but just starting out, there are free apps that you can use and, as far as advertising goes, we have tik tok now, where you can advertise for free and reach you get organically is amazing. so these are the only costs that i'm going to include as absolutely essential. next, let's tok about the amazon affiliate program cost to get started: zero. you don't need a website if you're joining their influencer program. you just need a social media account with either youtube, facebook, instagram or tiktok. just like i said for drop shipping, though, i do recommend purchasing the product you are recommending so that you can create video content, but that would be the only cost associated with starting, and that price depends on what the product is. now let's tok about the amount of work each of these takes. with drop shipping, there are a few categories where you will spend your time. the first is doing initial research, so that includes finding a winning product, finding a supplier, doing market research, coming up with a price, and etc. then you need to create a website, so installing a free theme, installing any apps you need, adding your product to the store, writing the descriptions up, setting up all of your shipping and tax settings, and etc. third, you need to advertise, so recording video footage, editing and posting. the time you spend here is going to vary from person to person, and it also depends on how many platforms you're posting on and how often you post, but, for example, if you're on tiktok, you are likely posting one or more videos per day. the final category is one that i feel a lot of people who are interested in dropshipping forget to consider, and that is the customer support side. you yourself aren't shipping the products, but if the customer's product doesn't arrive on time, if they have a question or if they aren't happy and want to return it, it is you that they're going to be contacting. so this is something you definitely need to think about. do you have the time and do you want to be providing customer support? is that something you picture yourself doing? if not, it's not to say that you shouldn't do it, period, because you can always hire someone in the future, if you do well, to do all the jobs that you don't like doing, but it's just something to think about. as for the amount of work amazon associates take, there is no website creation. there is no customer support because, again, this is someone else's listing, someone else is selling it. if a customer has an issue, they wouldn't contact you. they would contact amazon. the biggest pocket where you'll spend your time is content creation, but perhaps the biggest drawback for being an affiliate with amazon is that, in order to even be eligible to join, you do need to have an existing following. at least this is true for their influencer program. if you want to join the amazon associates program, that's the same idea, but the eligibility requirements are different. for that one you need a website to join. i'll have links to both programs in the description box if you want to read more about the requirements. but back to the influencer program. if you don't have an existing following, you first need to build one, so that's posting a lot of videos to build up your follower account. this could take months, depending on how fast you grow and depending on which platform you're building on, and then, once you have the following and are a part of the program, it's continuing to make videos for each product that you want to advertise. our third and final consideration is the earning potential with drop shipping. say you sell this product, for example, this product cost 28.69. if you sold it on your website for 59.99 and then you offer the customer free shipping, but it costs you ten dollars to ship, you would subtract the product cost and the shipping, which would leave you with 21.30 in profit. this doesn't include the cost of your website or domain name. so those are other overhead costs to consider in your equation, but in this example, selling just two of these would cover your website costs for the month and leave you with some profit as well. if you were doing affiliate sales on amazon, you would earn a percentage of the sale. the percentage amount that you earn depends on the product category that your product falls under, but for this product in partikular, it would fall under home, which is a three percent commission rate. so if this product was selling for the same 59.99, you would multiply that by point zero three and your earnings would be about a dollar eighty. now that number isn't all that impressive, but the cool thing about the amazon affiliate program is that when someone clic.
Affiliate Marketing VS Dropshipping - Why I Shut One Of These Businesses Down!
hey, what's going on? aaron chen, i hope you're doing well. if you're watching this video right now, you might be doing some research on affiliate marketing versus drop shipping. okay, you're interested in finding out which business should you start- affiliate marketing or drop shipping? we're going to tok all about that in this video today. if this is the first time you're watching one of my videos, i always come up with content that will help you be more profitable with affiliate marketing, so consider subscribing to the channel. okay now, i've been marketing online for 12 plus years, um, especially if you haven't been following me for any length of time. i've tried a lot of different things. i've had a drop shipping business. i had an affiliate marketing business. i've tried, you know, clickbank, jvzoo, warrior plus, survey websites, gpt style websites, um tok to your sales. i've been in five different mlm companies, you name it. i've tried it online, right? i've spent um hundreds of thousands of dollars testing different business models, and i'll tell you what the pros and cons are of drop shipping and affiliate marketing. okay, now, don't get me wrong. in drop shipping and affiliate marketing, you can make a lot of money. it just depends on what style of business you prefer. there's nothing actually wrong with drop shipping? um, it or affiliate marketing? it's just, which business do you want to create right now? the thing about drop shipping: and i started my- my drop shipping business in uh, 2000- uh, this is actually uh, almost two years ago, right, so 2019. i started a drop shipping business because i was doing really well with affiliate marketing and i thought, you know it's along the same lines. i'm gonna get started with my um drop shipping business and, kind of, you know, build my affiliate marketing business and drop shipping business at the same time right now. what i didn't realize about drop shipping is that there are a lot of moving parts. okay, so the first thing that you need to understand about drop shipping is that you're selling physical products on your shopify store. okay. now, if you're selling products on a shopify store, it means that you must pay for the products upfront. that's the first thing. that's the first thing about drop shipping. so if i was to sell my own- your future mug, for example, right, i'm gonna have to buy this and either store it in my cupboard or my basement or i would have to do a deal with some sort of supplier and get them to send it directly to my customer, when the customer purchases. but that means that you still need to cash flow the product. okay, now, if you buy one mug, it's not such a big deal because this is cheap. but if you're selling something that's a little bit more expensive, like a drone or some sort of you know, like cameras and stuff like that- it can get quite expensive. so the thing about drop shipping that a lot of people don't realize- and i didn't realize that, i realized this at the time- is that you have to spend a lot of money up front to cash flow your products. okay, so that's the first thing: you need a big budget. the second thing about drop shipping that a lot of people don't know is that you must have a budget to advertise online. you can't really make money from drop shipping if you do free traffic. you have to use paid traffic. so you have to use either facebook ads, google search ads or youtube pay-per-click ads. all right, so that means that if you don't have at least three to five thousand dollars to test on ads, you can't really start with drop shipping. all right, that's just the unfortunate truth. okay, so that means that if you don't have money to buy the products upfront, so that's at least a few thousand dollars. again three to five thousand dollars. and you don't have money to spend on your ads- again three to five thousand dollars. that means that's about 10k, right there. right, if you don't have a, if you don't have 10k sitting around, you shouldn't start drop shipping because your business is going to shut down before you can get into profit. okay, so that's the, that's the kind of the, the bottleneck with, with, uh, with drop shipping. that's the barrier to entry. not everybody has ten thousand dollars or whatever seven thousand dollars, five thousand dollars lying around. you need to have that pool in order to get started. the other thing that i realized about drop shipping as i was building it out is that because you own the product. so when i sell this mug, for example, right, i own the mug. okay, i'm not selling it from another network. i actually have to own this mug. and when my customers buy from my drop, from my shopify store, i have to mail this physically to my customer in the us, in china, in scotland, in singapore, in thailand, wherever they are in the world. okay, so not only do i have to mail it physically, i also have to own it, right, um, and i have to do the customer service because i'm the owner of the product. that means that if you're selling a lot of products and- and that's the only way to get to the big income goals- so if your income goal is 10, 20, 30 000 a month, uh, in in profit with drop shipping- you're going to have to send and sell at least a few hundred units of that mug every single day. now, when the customer has a problem, they're going to email you your support. that means that you have to handle all the support. all right, that is a huge ball like. think about it. if you're selling one to 200 units of anything every single day, you're gonna have a lot of customer service. okay, unfortunately. and you're gonna have to handle all the customer service because you are the owner of the product. does that make sense? so if something doesn't fit, if it arrives broken, if they want a refund because they don't like it, if it doesn't work or whatever, you have to handle all of that, which means that it's a lot of work. and the only way that you can handle the customer service when you get big is if you hire staff. otherwise you're going to be at your computer 15 hours a day, which is not how you want to build a business, okay. the fourth thing that i didn't realize about drop shipping, which kind of sucks, is that the profit margins of drop shipping is very low. okay, because i'm selling a mug, or i'm selling a fidget spinner, or i'm selling an iphone or i'm selling a calculator- it doesn't matter- or a drone, right, there's only so much that i can charge for this mug. all right, i can't charge a thousand dollars for this month, because people aren't gonna pay a thousand dollars for a mug. right, they're gonna pay what they think is the right price for a mug, which is five dollars, maybe ten bucks if it's a branded mug. you know, people might pay, you know, 20 for a month, but that's already starting to get on the high side. does that make sense? so people are only willing to pay what they think is right for that partikular product because it's a physical item. once it gets too expensive, they're just going to go on google, they're going to do research and they're going to buy it from somebody else's shop. and that is the problem with drop shipping. you have kind of this invisible price war going on and there's only so much that you can charge for your items, which means that the profit margin is limited. there's an invisible ceiling on how much you can charge, which means that in order for you to make a lot of money with drop shipping, it becomes a volume game. that means i must sell a lot of mugs, a lot of calculators, a lot of fidget spinners, a lot of t-shirts, a lot of shoes, a lot of glasses, whatever it is, in order for me to make up um, to make that big profit. right, it becomes a volume game, which means that you have to sell hundreds and hundreds of items every single day, otherwise you will never get to 10, 20, 30 000 a month. i hope that makes sense, okay, so with drop shipping, there's a lot of you know, there's a lot of barriers. i think you know again the profit margin, because you're spending money on tools, you're spending money on advertising, you're spending money on your, your product costs that you have to bankroll upfront, right, um.
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Affiliate Marketing Vs Shopify Dropshipping (Which Makes More Money?)
샤프 iope 방어 미오 넘 애한테 뭐 wool hood 노페 o 아들인데 키워온 도안이 wii silence, lots of opera. ohto myra 사람들이 큰 폐하, 어찌 드 샤 프 파이트 앞 씨의 100 마일 allows to the roof 펜스 바로 영화 eos 시스템 으 으 딱 x 그대로 oppa 먹이로 먹게 했다 푸 앞에 뭐 이젠 우리도 이렇게 커스티 on sns 에 뭐 크랙 12 앞 쇼핑 오기로 못했고 웨더링 카스트 뭐 숍 s 있는 조인다 안쓰러워 수. 그렇기 때문에 이 접하 웃은 컨 스파이 it's 패스와 soo ko 찍게 된 친구. 예, [음악] 2 웬지 앙크 쓰다 힘으 no, 트폰 이고 밴드인데 스턴 앞엔 이유 있어요. 예, 안되는것 예뻐 펀딩 스페이스 에서 - 헤어피스 i 위 조건이 음원의 갯수도. a 겟 쇼티 피규어 추 ir 학교에 마케팅 역시 qi 2 앞 쇼핑 라딘 요인은 가 멘트 뽀뽀 이 qr 이 모호한 어디 tree r2, iverson, 바운스, 디스 유아 있는 학생이 a kde 아스키 링스 달에 타이 페이 지아 스켈링 수달의 교사도 같으냐 빙 테스터로 임의로 이야기야 방한 웜벳 내비 봄이와 축들이 엑스퍼트. 내가 너무 카나 스쿨 전체 있게 내야 천우 거보다 허 봄의 기운 뭐 카운터 본 수단인 됐었어요 이렇게 주 있습니다 소리에 슈마허 모험. 한번 비즈니스 만나보겠습니다. no.55. 나 어떻게 뭐 그리스 단 올해부터 낱권 봐 iver 스냅이 오브 존이 5e room 센스 p55, 여기 큰 숨을 수. well, how frost 있기보다 붓다 rowland 부어 & c 도 이렇게 했어요 나오던데 왜 주고 있는 스위스, 악, 무슨 야 oo 아 안도 다 알 수 없던. 뭐 그래 타인의 페라 / 그라비테이션 얻어 iv 백킹 빙수 어그 없으니까 스 one a 북미, 이런 일이 다이너 수 섬 & 스위스, 그냥 안 oo. 테온, drs, nav, 우아한 그 맥시모 2, 뭐 들어갔어요, 특히 또 뭐 다 보고 너무 좋은가 에 또 를 넣으세요 spool 샤프 파의 스테레오 앰프 note 했었어야 댄스, 스마트 유압 씰 팩 moen 소스 왁스, 충북 9시에 뭐 주고 있어 erin 바보고 쎈데 있는데 좋아, 1m 스타우브 중 p 보브 앉혀 9ml 앞 set x over 모두 어벤져스 아빠 있다 이런 오케이 이너프 하던 중 소프트웨어에 뭐 그래 an 주 앞 셰프 인기나 벽에 뭔가 되겠지 마 pd 퍼셀 oo, 그럴 나와있네요 4 smi 약 그 아무도 쓰지 마. expo sci & 스윗 일수에 킬때 팝 음악이 좋아 빛 event we pass 쏜 scoop mysore india 비할 수도 뭐 이 뭐 내가 썼어요 b qsc posted on 샤프 파이 루프 아픔을 준 좀 유지 해 놓은거 영암 불입 올센 좋게 더 리프 살 비켜 주시던 뒤 모임에 데 즉 오프 아르스 답다 다 제 허리 것 듀스 9 스위트 b 써 뭐 큰 패러디 쑤 로커스트 쓰다 대표의 뭐 그런거 s 2 앞 쇼핑 배스 것으 to refer 굉장히 써주고 아픔 원주 칭다오 없습니다 올 나치 피칸 3인에게 1 버티지 e-scm 미스터 를 불러 주세요 라고 짧게 거의 앗뜨거 2color 브랜드에서 살풀이를 먼저 줄 때. row exposure of 의무 학교를 스쳤던 와요 일수도 미 죽인다. 3 l 써모 이 소 스 서치 소감 사이 리즌 다 스 뉴욕 안 믿든. 5 매 기수 소포 조슈 비프 페어 토시야 왔다면 이 펜스의 부호로 yes 일까 오빠 입 아이비 운명에 수다 어린 댄스 했습. 일어나 보안 툴 따을 때 지켜낼 수가 어린데. 3 내님 슌 비스 더링 데서 주식 뭐 거래 출제 앞이 터주나 워킹화를 쭈 갑 은 데쳐야 수도 붙일 수 도입합니다 왜서 샤프 ips 충북 빠 입다 없습니다 올 일부 river 끄면 티켓수다 루샤 5s 티캐스트 이번 더 미워 앞엔 잘 압니다 누구 악취 이걸 진짜 서 과 이루어 운드 4r, f4u 바에 이 공개된 c 물어도 줄게 있어 치고 액션 3q 트렌드 조합식 얜 유스페이스 die? u 마켓 샤 때 암웨이 코의 크기는 업소와 a? 2 앞서 삥 예수 oint 으 페이스북의 않습니다 빙 셀 하딩 힘든 초에서 그 때 패딩 형과 출 쌍의 l 없어 u imate 99만, 이게 네 inverse 되겠 수다 우린 6000원 임원 마리의 비싸 셔링 샤프 파이 스도 미카엘 주겠니 to and 픽스 5층 모르는 밸런스 타브 그쵸 a 넣을 때 내 아우 sfm 와 크링 유경미 가스도 서비스 기간 6월 제 스켄 낙 된 걷다 지오헤어 패딩 그냥 뜨다. 앞서 파카 20 sfr 때 공원은 빠이 그리고 유성구 있? 라엘의 용의 이렇게 쉬운 방 학교를 여기 in 부총리가 매도 맨 왜야 스위치 좌파 빠이 6월에 아? 쿠 스 도 url 투스 tools, 알싸 of a 수미가 스톤 벌써 쏘아이 mess 있는 조리한 뭐든 웨이퍼 증가와 또 뭐 크림 & 앞 샾에 dream 어선, 디스 패스, 왕, 이런, 및 애니 있는 건 좋겠어 뭐 그 링 이러니 뱉는 조의 m? 얜 oi 라이어 us 바운스 볼 수 투야 os 부터 # fico 유용 미랜 근조 올림 양어 알고 gd 아 스텐드 좋아요 불교나 하도 좋아해서 는 페이스 퍼갈때 휴 연다 or scorn 싸 올 와 를 주 앞 싶을 수도 있습니다. 미카 nar 락카 스트레스가 이러니까 대화? 1m 소아 2 주 이렇게 보이고 익스 위치 아 속이 없는데 2조에 의하면 선 비 복습할 때 프? r xm 줄 2위 아오 그러시나 어퓨 twi 위에서 마루 유압 시프 rx 의 김태구 긱스 태아 중에 와이프 카스트 머스 도 올 수도 앞서 그대 에서 무비 도구 미워해 내 편성 버츄얼 for 줄 싸이 루치아노 이 스피킹 유교 우미 다빈 분투 해본 일도 앞 cp 나 서 oo 이 아암 부자 이 생긴 이래 뭐 그리스도의 부하 그레이 야스 묘 앞에 아이한테 k 달 6시 wide 아브 잘 쓰니까. 이렇게라도 다해 주 빼지는 집 덩달아 쓰게 5 법에서 spo 윤아 또는 취 따 솔잎 스퀘어 1 요소와 연 깐 넣어도 안? r? 뻐 가 발생. we move as 안한 pei sl4 6배, 5배 essere 압축. 뭐 빠이 병리 주주로서 뭐 그런거에 diverge 김태희 또 뭐 온거 n 배우다 뽀뽀 out ha long. we 울 n 싸 of a 썩 아프다 썩 이런 미래 빠다 있음 지 아 3 숨을 전봇대 옆에 돼요 원래 스포츠 아퍼 오빠 이미 쭈 주에 아노다이징 jes 에어쇼 포함해 특이한 부터 안쓰게 파 a q2 앞 쇼핑 포함 섬 단도 n 샤이나 일수의 애한테 스타 우선 될 텐 다운은 아래 po 2 he sent or a 펌 디아 쌤이 퍼거슨 was out of r? s 마케터의 부하들이 리스크 가맹 아프고 빼 아아 떼 아스코 2 이래 서버 나 자유 대포 벤치 줄 써 ys 대선과 하루가 있으려 부터의 뭐든 그 der 위엔 스포츠 걸 아이유 뒤에도 메이크 유 걘 테트라, 펙스, 올스 브러시 값보다 더 거예요 수납 fpd 스파 웃은 건 써 페어에 뭐 크레이 무비 before suk were so for 킥을 미드 이지아는 왜 시민들 미디움 페이퍼 거 없 으 중 중에 페일 퀘이크 2 본 가우스 월급에서 세스크 길에 및 일행이 아 펜스 더. 그래서 와 하는데 펜스 다 아프다 이렇게 파샤 밥 먹고, 겜 지급이. 그래서 예쁜 모브 게임성에 페이 받아 얼 잡을 자금성 프레임 수도 없으니 게임 어느 이 그들을 완전히 쓴게 봤습니다. 그래서 이 scooter ana 레나와 쓰시기 앞둔 5대를 나와 쓰지 않던 류의 대해 어떻게 끌어 대추 압사 you hook on. 난 벌써 no 베이스 나쁜 없으나 강호 포켓, 나 뭐 a 삐뽀 쥬스 저쪽, 마이 km 압델 한쪽 나오는 말 이렇게 갭 pore, 앞날을 ddo 아이콘 먹히면 남부 센 어떻게 뭐 해 뭐 or 매진해 counter 나디아 pointer to use spoon 컷 어 샤퍼. it operates as police box, ver x2 금품을 에스더 앞 cf nsf 하츠 보호 it 스퀘어 몸에 빛이 유비 카르발류 쿼리는 매수 s 밥버거 가운데에 있는 닥추 헤이 스코프 아래쪽 그냥 쉐이커에 매스 정보. 1 워워 않은 분만의 뭐라 에서 루터의 뭐 그렇게 us 푼 약 등 다 점에서 5k 링이. 뭐 그럴 8% o 일원을 주 앞서 frit 안 쓰던 그 얘기는 뭐 해야 얀 밑에서 스페이스 워프 아래 또 낮추고 내복 말은 만에 있으니까 무 앞 cp 컴퍼니 섹스 of 뼈의 나올. 보았어 그대 아쉬움을 2학 10회 다시 것들 띄워야 이걸 2 앞 c 팩 네이트 없겠 내 줄수 앞뒤 에어컨 대학 씨의 뭔가 건데 그때 베컴 뿐이나 헌 돌 졌습니다 있었다을 south poles 데이브 2 앞 10 인권 춤 nf 에 부합 링크페이지 볼턴 배우입니다 얼싸 왔어 wisconsin 스페어 임원 인턴 베이스볼 켄 her 부터 scope pun 부터 아이스쿨 그 알스 보이는 깬 내리기 뽐 즈음이 커스텀 타르 대해서 뭐 이렇게 ust 이룰 주 아래 kanye 아 비켜 줘 coy 페이스 포킹 인치 튜브 야만 포터 알죠 어슷 앞서 많이 너무 yy 은 마우스가 더 뜨게 뭐 크레이 of pin, 몸이 너도 뭐 인출 스팅 임원은 doodle 테바 힘든 조언을 덮어 오던 가은 섹스. 아노라 누아 피어 pu 떠억 또 도입부. 하쿠레이 무얼 쌰 바이오 fins 달하는, 이 쌩 문앞 인가. 그런데 가면 뽑아. 왈츠, reason 바, 에스파스, 보아 be in, 허위 kid likes, 에 뭐 크레인 개인을 선택 라이너 video flip soo 업이 sook 스트 인어 스텔스 침몰, 비싼 씨보다 보겠어요 썩 맥스 bytes 프리우스 cool 했듯. 요렇게 이신데 어 2 아빠를 수도 후추 악 데이터 아크, 초일류 알수도 앞에 있어요.
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Dropshipping Vs Affiliate Marketing - Which Is Best For You
hey, sam, if you're watching this video, then you're probably wondering what the differences are between drop shipping and affiliate marketing. well, stay tuned, because that's exactly what we're toking about. [Music]. on my channel, i always release videos on digital marketing and passive income strategies, so consider subscribing also, if you want. you can click on the link below to get access to my recession-proof business model that will teach you how to build an online business from the ground up. so don't worry if you have zero experience, because you'll get the best training that will make you the top marketer. great, let's get to the content. so drop shipping is basically just buying and selling products from the manufacturer, and the manufacturer just ships that product directly to your customer, and you do this by setting up a website- uh, preferably a store, and when you're setting up a store online, there's a lot of platforms you can use, such as shopify, which is the most popular one to create an online store. so wix also up their game when it comes to e-commerce. you can build a store with wix as well. there's other platforms, like weebly and squarespace, but their ecommerce system isn't as robust as shopify, and if you have coding experience or you want to save some money, then you can definitely use wordpress as well. so let's start off with the pros of drop shipping. with dropshipping, when you're setting up your own store, it could be a niche that you really passionate about or something that you see that's trending and selling really well. well, in any case, doing drop shipping, you have a wide range of products you can. you can market and sell, and because your customer buys it from your online store, the manufacturer is the one that actually shipped, so you never see inventory, because inventory is held by the manufacturer or supplier and they pretty much handle all the packaging as well as the shipping. with drop shipping, you get to fully control your own store. you get to fully control what you sell, how you sell and how you market. it's your own website and your own store. you dress it up however you wanted to and because it's your own store, you reap all the profits- the profits which are the price you set minus the cost of goods sold, which is the manufacturer's cost, the marketing you you have to pay for and whatever you needed to do in order to sell that product. another pro i notiked is that there's a lot more suppliers now in in every single country, so you're not gonna run out of supply. most of the time. i live in the usa and when i jump back into dropshipping there were a lot more usa suppliers- usa suppliers that are located near me. but that doesn't come without cons, so we'll tok about that later now. when you're doing drop shipping, it means that you're actually building your own business. it's an actual business because it's your storefront, like retail, except that it's not brick and mortar, it's online, and when you're building a business, it's a living, breathing asset. every single drop shipping business customer support is required. you, as a business owner, need to deal with the customers, whether they're good or bad, in order for you to upkeep good ratings, because you need. you need good ratings for people to trust. you build that trust between your store and the consumer, and- and the power of reviews is really crucial when it comes to drop shipping, because your own store you rather have five stars- four stars and not one stuff. so customer service is one of the biggest things of dropshipping in order for you to find products that have the highest margin that pay you the most is usually products from china. so this is the con, because most of the time, delivery from china usually takes at least two to three weeks for your customer to receive their product, and with the time frame that you're competing with amazon- like two day shipping or maybe even one day shipping- that's. that's a big con. you're fighting against amazon, a giant- a giant that's all over the world, so you got to keep that in mind. so not only are you competing with amazon, you're also competing with the suppliers and the manufacturers that put their own products on sale in their own website and amazon, and most of the time, these suppliers and these manufacturers that are on amazon can pretty much undercut you easily. even if your supplier doesn't compete with you, there's other suppliers that probably sell the same product that are competing with you and definitely undercutting you, so making a profit there is kind of hard too, so you got to keep that in mind. because of that, you need to find reliable suppliers. it's not just suppliers in china that are that are marketing their own products on amazon. it's the suppliers in your respective country that also do the same thing, because it's business, they want to make money, and you're just pretty much the middle person that's really competing with- uh, with all these giants that actually can get the products at a way cheaper cost than you. so no matter what business plan you have, what a business that you're conducting, whether it's drop shipping or affiliate marketing, the big issues are always competitive. you're going to have a lot of competition when it comes to, when it comes to big niches, and rightfully so with drop shipping, because, after profit happened, a lot of people started making their own shopify drop shipping business. the amount of drop shipping stores increased tenfold because of uh, because of coving, people started wanting to work from home and have their own business running. so competition is is increasingly harder compared to the years prior, at a rapid pace, especially if you're a beginner thinking about doing dropship, because you probably heard that it's uh, it's easy money to do. all you have to set up is a store and you just tell people to buy from your store. it's way more than that, and if your goal is to create passive income with drop shipping, then it's going to take a lot more money than you think, because in order for you to build and scale your business during drop shipping, you need to hire people. you, as a drop shipping store owner, can't waste time on media tasks like finding products to sell or writing descriptions or or or managing your, your customers. so even if you have the best crm, which is customer relationship management, you're still need- you're still gonna need- people to to use that for you. you're still gonna need to hire someone to to deal with that with for you, because you have other bigger things that you need to do, such as marketing. marketing is probably at least 60 of the whole pie because you need to do. you need to have constant traffic which are with your eyeballs, or potential clients to go to your store, be interested and start buying in order for you to make money and or any profit at all so doing drop shipping. you can't become a solopreneur and create passive income. you need to hire people to help you out. you need a team for automation and scaling because there's an increasing amount of stores being created that probably in your in the same niche as you. you need to stay connected with your supplier and really probably haggle and build a relationship with them, otherwise your margins are going to be unprofitable. if this video helped you spark interest in doing drop drinking, please leave comment down below and let me know what your plans are or what type of niche you want to. you want to start with, if you don't like the sound of dropshipping, there's an alternative you can. you can create passive income with, such as affiliate marketing. so, when it comes to affiliate marketing, all you're doing is just promoting someone else's product and then collecting commission after each sale you make. so that's pretty much the basis of affiliate marketing. and when you're doing affiliate marketing, there's really no products for you to create because it's other people's products and, compared to drop shipping, there's really no headaches for you when it comes to wondering whether or not.
WHY AFFILIATE MARKETING IS BETTER THAN DROPSHIPPING | Business Analysis
i ask my cousin if business is booming, he sells explosives. thankfully you can't drop ship those. i mean, at least i don't think you can, but i bet somewhere in the world someone is doing it. there are people for everything, but today we are here to not tok about weird drop shipping items and how the mythbusters got their explosives. today, we're going to show you the differences about affiliate marketing and drop shipping and, most importantly, why affiliate marketing is a better business model than drop shipping. we will also answer the most important questions that you are all desperate to know. you probably are like gollum in a corner just wanting to know: my precious, where are you, my precious? we will answer which method is easiest for beginners to make money, with which one makes you the most money and which one is the most passive- and by passive i mean making money in your sleep. don't get any wrong ideas. let's get on with it. we're going to start out, though, by quickly looking at what each of the different business models are and how they can make their money. we can start with affiliate marketing, and basically, all you have to do is refer customers to clients, to another business, and if they make a purchase from them, you get a sweet commission. oh, sounds good, doesn't it? for example, amazon has one of the biggest affiliate programs in the world. the percentage has changed a lot, but you can get up to ten percent of someone's order. although the commission percentages are not huge, the traffic and the trust in amazon is, so you can make really good money with it. one of the biggest affiliate marketplaces is clickbank and there are some products you can get up to a 75 commission. that means in every 100 sale you bring them, you make 75. isn't that crazy? i bet even the greek gods are thinking about doing this. it's a freaking no-brainer. the way that you refer customers to them is that you give what is called a hop link, a link with a tracking code embedded in it, and when someone clicks on that link and person, just as a report, you get that commission on the sale. so obviously your goal here is to get as many people as you can to click on the link and then purchase the report. so you can use multiple strategies to get that traffic. you might start making youtube videos about any niche and link a product relevant to that niche. once you start a product or something that many people are doing, you can create a tiktok page. if you use tiktok, you probably have seen some videos like things you need to buy on amazon or something like that, and guess what all of those pages are doing? affiliate marketing. see what you learn on this youtube channel. feel free to smash that subscribe button. you might even choose to run paid ads to it, but that's a little bit more tricky with affiliate marketing, don't worry, we'll explain in a bit. let's have a look at how the business model that many shady people- not slim shady, just some shady people. why shady people, you may ask. you will see. now let's look at how you can make money with drop shipping. this is when you set up an online store using a platform like shopify and you list products for sale, products that are being sold on aliexpresscom. what is aliexpress mask? well, aliexpress is a website that lets you buy items individually directly from manufacturers. obviously, they're based in china, so the prices are super cheap. cheap products equals easy profit. so what you do is you take an item on aliexpress and you list it in your store and put a huge markup on the price. then you run paid ads to your store, with facebook ads usually being the best, as they are low cost yet highly targeted. some people are also creating pages on tiktok and using the free traffic there. it is also a good option. i know i'm beginning to sound like a tiktok fanboy, but boy, oh, that's a good platform. you just need good content and, bam, you're famous when you get the traffic coming and the customers come to your store and purchase the items in it. you then go to aliexpress and purchase the item that the customer bought and get it shipped directly to them, while keeping the difference in profit. easy money, easy lamborghini- so which one is the easiest for beginners to make money? one of the challenging aspects to starting an online store is that nobody knows who you are. when you advertise your store to someone on facebook, you ask them to come on and buy an item from you, despite not knowing who you are, despite the fact that you haven't built up no trust or credibility with them. and here's the advantage for affiliate marketing for beginners: your merchant has most likely already done this part for you and has built up a lot of trust and credibility. as we said before, amazon, for example, is one of the most trusted online brands in the world. almost everyone in a first world country knows what amazon is and probably trusts them. they even give you content so you can use it to market their products. this is how bruce's parents got rich. you know that right batman is rich because of amazon affiliate marketing. don't quote me on that. when you send a customer to amazoncom, you have the benefit of the brand and the trust that they've built, which will make converting sales easier. on the other hand, with affiliate marketing, running paid traffic can be a bit of a challenge, especially if you're trying to direct that traffic directly at your offer. and that's pretty important to keep in mind because, while free traffic is great to have, it is slow and you also need to learn extra skills like search engine optimization. so paid traffic is usually the fastest and easiest way for beginners to start making money online. as you can see, life is a pay to win game. if you didn't know that already, well, now you know. when you're drop shipping, you may think you have huge margins to work with and in the products you actually do. imagine a glue gun you can buy on aliexpress for about five dollars. then you can sell it on your shopify store for around seventeen dollars. then you also have around two dollars of e-packet shipping. the total that you will pay to ship this glue gun is seven dollars, so that gives you almost a sixty percent profit margin. but wait, don't forget that you probably need to pay ads. unless you're willing to use free traffic, that will probably take months to make the first sale. if you would like to wait until you are a skeleton to make your first sale, go ahead. but if you want to make money quickly or even consistently, you will definitely need paid ads. on the other hand, well, clickbank can have a really high profit margin, but the vast, vast majority of online products and offers do not have commissioned rates that high. usually the upper limit is 50. that means you've got a much smaller margin to work with when you're running paid ads to your affiliate orders. plus, if an affiliate order is a partikularly high converting, it is definitely going to become saturated very quickly, with affiliates trying to run paid ads for it. so if you choose affiliate marketing, you get the bonus of the fact that your affiliate merchant has gone ahead and built a brand awareness and trust, which will make it easier to get high conversions. this is a really- and i mean really- profitable business model if you already have a following of any sort. i bet lana rhodes can make a whole lot of money with this. for example, which one makes you the most money? both business models can make huge amounts of money, and when i say huge amounts of money, i mean millions of dollars every year i hear. catching something to keep in mind. is that? well, yes, with affiliate marketing, you can earn super high commissions. you are ultimately giving your customers to your affiliate partner, which, in this industry, we refer to as the merchant. let me explain. let's say that you're going into tik or a new niche, and you plan to sell items on it, and you've got two options to pick from: create a website that recommends amazon tik gadgets, or create an aliexpress drop shipping store that sells tik gadgets. well, h,
Affiliate Marketing vs Dropshipping | Which is More Profitable in 2022?
hi there. in this video we are going to compare affiliate marketing with drop shipping. welcome to foxhim channel. if you are brand new to this channel, please consider subscribing by clicking on subscribe button and hit on that bell. this is anna from fox internet marketing. in a moment i'll show you a difference between affiliate marketing and drop shipping to decide which one to start in 2022. if you've been trying to find methods to make money online without the tension of production and shipping your own products, then drop shipping and affiliate marketing are both fantastik ways to do this. both drop shipping and affiliate marketing will permit you to generate income by selling other people's items. the charm of these methods is that they are best for digital marketers. you can keep your business prospering anywhere you remain in the world. all you need is a laptop computer and a good wi-fi connection and you are set to go. what is drop shipping? drop shipping is an online company design that lets you run an e-commerce service without stoking any products. as a drop shipper, you run your own drop shipping shop. you sell the items on your own e-commerce shop. the customer completes the transaction with you at retail price. once they have actually paid you for the product, you buy it from the merchant at the wholesale cost is shipped straight to the consumer, who believes it has originated from you. the difference between suppliers, wholesale price and retail price you offer to the buyer is your revenue. what is affiliate marketing? affiliate marketing is a type of performance based marketing in which a business rewards one or more affiliates for each visitor or customer brought by their marketing efforts. it is extremely easy to get going: low startup expenses. all you need is a blog site. no requirement to provide any client support. you can run your business from throughout the world. it can become a great source of passive earnings. you can add your affiliate links to your blog site, youtube and even social networks. so which is better? for many individuals, affiliate marketing is the preferred option. it is apparently the easiest online business model to start earning passive income online. it's low cost, high profit industry. you can start in affiliate marketing without even having a site. this makes it an excellent option for anyone with a big social network following along with youtubers who want to add another earnings stream to their company. drop shipping has lots of drawbacks: it is difficult to develop a brand, no control over supply chain, highly competitive, low profit margins- sure, considering that you do not have to manage or keep your own inventory. the overhead is low, however, so are the returns. affiliate marketing is that easy: choose a product, promote it, earn money. guys, if you like this video, please subscribe to our youtube channel and hit the bell, and you will be notified when we drop a new content to our channel. in the next video, we are going to discover is affiliate marketing legit. thank you so much and i look forward to see you in the next video. [Music] you.