Affiliate Marketing and Dropshipping Products – How do They Compare?
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Posted On :
Aug-13-2010
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Article Word Count :
553
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If you want to start your own business, or just make some additional money, dropshipping and affiliate marketing are two great options. But how do these two different opportunities compare?
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Whether you’re just looking for a way to make some extra money, or you have a dream of escaping the 9-5 grind of your regular job, starting your own online business is one of the easiest alternatives available to you. Dropshipping products and affiliate marketing are two routes many Internet “newbies” take, and so they are often compared to each other.
Affiliate marketing entails selling a product for another business, which dictates the cost and the conditions under which it is sold. As a retailer, you can order products from dropshippers at wholesale prices, and sell them from your online store at a markup. The return on investment is lower for affiliate marketing than for dropshipping products, but the annoyance factor is significantly lower, and you don’t have scam concerns to cope with, or government regulations.
Getting Started with Drop Shipping Or Affiliate
Getting an online business started is quite straightforward, whether you choose dropshipping products or affiliate marketing.
Affiliate marketing is a lucrative option if you want to make money online but do not want to sell your own products because you don’t have the time or energy. All you have to do is locate great products: programs, ebooks and videos to sell and set up affiliate accounts with the sellers. Once you have your affiliate links, use them to market the products and find buyers, so that you can earn commissions.
Here’s how dropshipping works: you sign up for an account and receive orders through your website. With the account, you can log in to your suppliers website and see what products are available for sale. You can also check the status of your orders. Once you have an account and you start receiving orders, the dropshipper will send the products directly to the customer on your behalf.
You also receive dropshipping business promotion materials to help increase the traffic to your website.
What is the Key Difference Between Running a Dropshipping Business and Running an Affiliate Business?
You have much more responsibility when you choose to drop ship products. If there are any problems with defective goods and late deliveries, it's up to you to resolve them, since you own and direct the link with the client. However, unlike affiliate marketing, you can set whatever price you choose, and the money can be made faster, since you don’t have to wait for a commission check.
You often have to simply accept whatever agreement the merchant is offering when you choose affiliate marketing, because there is very little, if any, flexibility. Some people favor affiliate marketing because the responsibility for the sale is on the shoulders of the company selling the item. Someone else handles all refunds, customer service and payments.
How do the two opportunities compare?
If your aim is to build a real business, dropshipping may be the better alternative. The main reason is that you will earn more money with each unit sold than you would as an affiliate marketer. Instead of earning a percentage set by the product’s seller, you’ll be earning a markup price determined by you. Dropshipping is not a get rich quick scheme, since you still have to price your products competitively and advertise effectively, but it has many advantages over affiliate marketing.
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Article Source :
http://www.articleseen.com/Article_Affiliate Marketing and Dropshipping Products – How do They Compare?_29194.aspx
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Author Resource :
Visit www.BigDropShip.com to learn more about Free Dropship Business Promotion.
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Keywords :
dropshipping, drop ship products, dropship,
Category :
Business
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Business
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