So you want to make money online and wondering if the best way to make money online is using affiliate marketing or shopify dropshipping? Then this article is for you. So in-order to help you understand which of these strategies is best to earn or make money online, let’s look at some of the different factors that affect both.
With shopify dropshipping, even though there’s no requirement to hold your own inventory, you 100% need a website where you will list these products for sale. Now unless you are able to create your own ecommerce website, you will need to pay someone to do so for you. A great ecommerce platform is Shopify which starts at $29 per month but if you don’t know what you are doing, you still need to invest in web design fees. You also need to invest in Marketing , branding etc.
With affiliate marketing, there’s no requirement to build an ecommerce website. I mean there’s a lot of affiliate marketers on youtube who simply upload videos reviewing different companies, then referring their viewers to those affiliate websites. Some affiliates also use free blogging platforms such as blogger, wodrpress.com to create content promoting different brands.
But overall it’s cheaper and almost free to start making money online as an affiliate marketer vs starting as a dropshipper. In this scenario, Affiliate Marketing WINS.
Business Ownership and Control
One benefit of making money online using shopify dropshipping over affiliate marketing is the fact you fully own and control the business. So customers are coming to YOUR website, purchasing directly through you, you have access to their emails and can sell to them over and over again. Secondly, you appear more professional and are building your OWN brand.
When making money online with affiliate marketing however, you are sending your customers to other third party websites to buy from, you are building and promoting those brands and those brands are keeping customers you bring to them. And some people may be put off by the fact that every single day you are trying to promote and send them to a different website or business which can impact your business. So in this case Dropshipping WINS.
Handling Customer Service
One benefit of making money online using affiliate marketing vs shopify dropshipping is the fact that you do not need to deal with any customer service, order processing or refund queries. The brands and marketers you are promoting are the ones responsible for all the customer service headaches whilst your job is really just to promote and send customers their way.
When making money online with shopify dropshipping however, you have to deal with customer service headaches, if customers do not receive their packages or have any issues with their order, guess you they will contact first – YOU of course. So this can be rather time consuming to you as a business owner, whereas if you were an affiliate, you won’t have to worry about any of that. So in this case Affiliate Marketing WINS.
Now when it comes to how much money you are likely to make from either affiliate marketing or shopify dropshipping, it will depend on the type of products you are promoting or selling. For example if you are promoting affiliate products from amazon, then earnings can be super low, I’m talking commissions as low as even 2.5% which to be honest may not be worth it as an affiliate. You will need 4000 dollars worth of sales to make just $100 in commissions if promoting a 2.5% product. Thats a lot of sales for just $100. However if you are promoting a high ticket product with a great earning commision, e.g an online course at $499 with a commision of 50%, that’s almost $250 per one sale.
Similarly when making money online with shopify dropshipping, your earning potential will depend on the type of products you want to sell. If you sell premium based products, then profit margins can be higher, but if you are dropshipping cheap products, then you may be left with little to no profits.
So earning potential I think its easier to earn more money with a high ticket affiliate product than it is for a high ticket physical product. e.g you can price a course, membership program or a service since this is usually unique to you, at a high price whereas with dropshipping, there’s only so much you can price for a physical product – especially if there are options on the market. So in this case Affiliate Marketing WINS.
So which is the best way to make money online in 2020 and beyond? Well affiliate marketing seems to have the highest points so far, but my simple answer is: IT DEPENDS ON WHAT TYPE OF PRODUCTS YOUR NICHE IS BUILT AROUND.
If you are into selling digital or non tangible products such as ebooks, courses, software, then Affiliate Marketing is the best way to make money online. However if you are into selling physical products, Dropshipping is the best way to make money online in 2020 and beyond.
Want to get Started with Affiliate Marketing? CLICK HERE TO LEARN MORE
Want to get Started with Dropshipping? CLICK HERE TO LEARN MORE