The Basic Principles Of Affiliate marketing vs e commerce
Many novices looking for ways to make money on the internet look into one of these paths. When we compare affiliate advertising versus e-commerce, both have their pros and cons. Either may be a great start for a newcomer. I've done both and decided to concentrate my time with affiliate marketing. In this video I will explain the benefits and disadvantages of affiliate advertising vs e-commerce that will help you decide on your own.
Over the last year and a half, I was building an e-commerce enterprise. I ended up moving away from e-commerce to affiliate marketing. Although I moved out of e-commerce to affiliate marketing, I think e-commerce is wonderful. If you're going to go all to it, then do it up. You can create a ton of money and that I know a lot of people that are making a lot of cash with e-commerce. But personally, I opted to move into affiliate marketing for a few different reasons. If you are a beginner with earning money online, I'd urge affiliate marketing and I will explain why in this video. I feel like it is a simpler start for someone attempting to earn money on the internet.
I had a couple e-commerce shops on Shopify. There is different ways to go about e-commerce. Many people buy large stock upfront, others do white labeling or personal labeling, etc.. I had been doing fall shipping. I was sourcing my merchandise out of AliExpress. It's sort of like Amazon but with a bunch of providers selling items for cheap. You never need to hold inventory.
The nice thing about e-commerce in comparison to affiliate marketing is e-commerce provides you full control over everything to do with your enterprise. For instance, it's completely up to you what prices you wish to set your goods at. The only thing you want to make sure is you're not going to a loss. You're either breaking even or making a profit. Provided that you're doing this, you can set whatever price you desire. The extra benefit of this is you may also create special earnings, give out discounts, etc as far as you want. That is not true with affiliate marketing because you are promoting other peoples' products. So they set the purchase price and you usually can not create your own discounts or prices. It's up to the individual selling. You're only referring customers.
Sometimes when you are a part of affiliate marketing applications, they also place other restrictions on where you are able to advertise, the way you can promote their goods, etc.. With e-commerce you have complete liberty. While in affiliate marketing, there might be a few restrictions you are Affiliate marketing vs e commerce going to have to take care of.
Another thing I enjoy about e-commerce is, as long as you can sell your merchandise, you get complete flexibility. You can pick from an endless supply of goods to dropship or retailstores.
Alright, so now why I moved on to affiliate marketing...
You will find a couple struggles that include e-commerce that you often don't realize you will face when you're first getting started. One is the prices. Drop shipping is probably the lowest cost means of e-commerce. A lot of individuals look at it like it is a"no-cost" way but that's not correct.
The difference between e-commerce and electronic products or affiliate advertising is with the latter , your financial plan is almost just advertising. There are not many costs beyond that, which means you get to keep all else. And if you're performing affiliate marketing, you do not even have to produce the product. You are referring people to other goods.
For instance, I'm an affiliate using ClickFunnels (among other programs). I understand I'm going to get a monthly recurring commission with that individual of around $50/month. Meaning I broke even in the first month and I'm creating a profit for every month then.