Many novices searching for ways to make money online look into these avenues. When we compare affiliate marketing vs e-commerce, both have their own advantages and disadvantages. Either can be a great beginning 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 to assist you decide for yourself.
Over the past year and a half, I had been constructing an e-commerce business. Although I moved from e-commerce to affiliate advertising, 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 earning a lot of cash with e-commerce. But I chose to go into affiliate marketing for a couple different reasons. If you are a beginner with making money online, I would recommend affiliate marketing and I'll explain why in this movie. I feel like it's an easier start for somebody trying to make money online.
I had a few e-commerce shops on Shopify. There's different ways to begin e-commerce. Many people buy big inventory upfront, others do white tagging or private labeling, etc.. I had been doing drop shipping. I had been sourcing my merchandise from AliExpress. It is kind of like Amazon but with a lot of suppliers selling things for cheap. You don't ever have to hold stock.
The nice thing about e-commerce in comparison 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 costs you want to put your products at. The only thing that you need to make sure is you are not going into a reduction. You are either breaking even or making a profit. As long as you are doing that, you are able to set whatever price you desire. The added advantage of that is that you can also create exceptional sales, give out discounts, as much as you desire. That is not the case with affiliate marketing as you're promoting other peoples' products. They Affiliate marketing vs e commerce 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 place other restrictions on where you are able to advertise, the way you can promote their goods, etc.. With e-commerce you have complete freedom. While in affiliate marketing, there might be a few restrictions you are going to 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 complete flexibility. You can pick from an endless supply of goods 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 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 is not true.
The distinction between e-commerce and digital products or affiliate advertising is with the latter , your financial plan is almost only advertisements. 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 products.
As an example, I am an affiliate using ClickFunnels (among other programs). I understand I'm going to get a monthly recurring commission with that person of about $50/month. That means I broke even in the first month and I am making a profit for each and every month after that.