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Ally Stewart
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What is the difference?

Published on 11/19/2017
For additional information  Click Here

What is the difference between afilliate marketing and a dropship website?
I want to earn money online but how do I start?
what business is right for me?
Do I need to own my own website?
Where do I find products to sell?
How do I get customers?

You have been asking yourself these or similar questions for some time now and are keen to get started.

A Dropship website or an afilliate program?

Do which one is best for you? do both or keep looking for something else. The choice is yours but I hope this article helps you decide.

What is dropshipping?
Dropshipping is a method of selling products to consumers without having to buy stock or own a warehouse . You don't have any product fulfillment to do as this is handled by the supplier. You don't need a website to sell dropship products but owning a custom built e-commerce store filled with products is recommended.

This is how dropship works.
You advertise a product for sale, this could be on your own website or you can have a custom made e-commerce store built and filled with products for sale. Someone visits your store, adds the product(s) he / she wants to the shopping cart, goes through the checkout process and you get paid. You order the product(s) from the supplier who then packs and despatches the goods to your customer. Your profit is the price your customer has paid less what you paid for the product(s) from the supplier. There will be other expenses which will need to accounted for, such as hosting, website maintenence and advertising, which will affect your overall profit.

What is an afilliate program?

An afilliate program is similar in many ways. The main difference is you only earn a commission, let's say 5 - 10% of the retail (sale) price. In addition, you don't own the website so you are selling products for someone else. You don't even need a website to earn money with an affiliate program.

This is how an afilliate program works.

If you do have a website or blog you can promote products on your website or blog. You can promote products on social media or any online location and receive commission on any sales you successfully refer. your commission is usually paid on a monthly basis.

Affiliates promote products with referral links on their own web page blog or social media. People click the referral links, get directed to the program operators e-commerce store and generate sales. You don’t actually sell any products, you are simply sending people to the operators e-commerce store who then takes care of any orders they receive.

Affiliates earn 5 - 10% of sales amount as commission. Commissions vary from program to program and some programs pay higher commissions if certain levels of sales are acheived.

The program tracks sales using Internet cookies containing the afilliates identification, so they know what affiliate referred the customer to the merchant.

Selling as an affiliate is much less profitable as commissions are much lower than what you would add yourself as a profit margin.

There’s extra effort involved in running an e-commerce store but the rewards far outweigh the costs, especially if you want a business that can establish your own brand.

The main advantage of dropshipping is that you don’t have to stock the products or despatch the orders yourself. However, since you are selling under your own store name, you are still responsible for customer support.

Why Running An e-commerce Store Will earn You More Money.

You set the profits, typically 30 - 100% of cost.
The customer pays you immediately.
No affiliate accounts to close and you have many suppliers to work with.
You build your brand while building value in your own business.
You can build a valuable business which you can pass to your children or sell on.

Why is affiliate marketing less profitable?

As an affiliate you only get fixed commissions of around 5 - 10%
You get paid 30 - 60 days later.
Any incorrect or broken links and you don't get paid.
You're never building your own business or brand, you are building the business and brand of someone else.
When you work as an affiliate, you are not a real business.
You are unlikely to get any repeat business as the customers you refer go straight to the affiliate store bypassing you.

With an e-commerce store you establish a reputation and a brand to get repeat business.

As an affiliate, you will constantly be advertising for new business because you haven't established a customer base.

Running an e-commerce store store takes more effort but you are building a real business which will grow a steady income for you as you become more established as a brand and are seen as a reliable business.

So why not put in a little extra effort and build a real business and brand, instead of running around trying to get new customers as an afilliate?


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