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 advantages and disadvantages. 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'll explain the benefits and pitfalls of affiliate marketing vs e-commerce that will assist you decide for yourself.
Over the last year and a half, I had been building an e-commerce business. Although I moved from e-commerce to affiliate marketing, I believe e-commerce is awesome. If you're planning to go all into it, then do it up. You may make 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 chose to go into affiliate marketing for a couple different reasons. If you are a beginner with making money online, I would urge affiliate marketing and I'll explain why in this movie. I feel like it is an easier start for someone attempting to make money online.
I had a couple e-commerce shops on Shopify. There's different ways to go about e-commerce. Many people buy large stock upfront, others do white tagging or personal labeling, etc.. I had been doing drop shipping. I was sourcing my merchandise from AliExpress. It is sort of like Amazon but with a lot of suppliers selling items for cheap. You don't ever have to hold stock.
The nice thing about e-commerce compared to affiliate advertising is e-commerce gives you complete control over everything related to your business. By way of example, it's entirely up to you what prices you want to put your products at. The one thing you need to make sure is you are not going into a reduction. You're either breaking even or making a profit. As long as you are doing that, you are able to set whatever price you want. The added advantage of that is that you can also produce exceptional sales, give out discounts, as much as you desire. That isn't the case with affiliate marketing as you're promoting other peoples' products. They set the price and you usually can not create your personal discounts or deals. It is up to the person selling. You are only referring customers.
Sometimes when you are a part of affiliate marketing applications, they also set other limitations on where you can promote, the way you can promote their goods, etc.. With e-commerce you have complete freedom. While in online affiliate marketing, there may be some limitations you'll have to take care of.
Another thing I enjoy about e-commerce is, as long as it is possible to sell your products, you receive full flexibility. You are able to choose from an infinite supply of products to dropship or retailstores.
Alright, so now why I proceeded on to affiliate marketing...
There are a few struggles that come with e-commerce that you frequently don't realize you'll face when you are first getting started. One is the costs. Drop shipping is most likely the lowest cost method of e-commerce. A good deal of people consider it like it's a"no-cost" manner but that's not correct.
The difference between e-commerce and electronic products or affiliate advertising is with the latter , your budget is all but just advertisements. There aren't many prices beyond that, which Affiliate marketing vs e commerce means you have to keep all else. And if you are doing affiliate marketing, then you don't even need to create the item. You're referring people to other goods.
As an example, I am an affiliate with ClickFunnels (among other applications ). I know I am now going to find a monthly recurring commission from that individual of around $50/month. Meaning I broke even in the first month and I'm creating a profit for every month then.