Drop Shipping versus Affiliate Marketing

Before we can get into drop shipping versus affiliate marketing we need to first understand what each one is.

Affiliate Marketing

Affiliate marketing can best be described like this. Imagine you open a new bank account, when you’re finished the bank says to you, “tell your friends and if they open a new account you get $50.” So you go and tell your friend to open an account, they do and confirm you referred them, and just like that you have earned $50.   

Online it works like this; you have a successful blog or Youtube channel. You review a product, or tell your viewers to check out the link in the description to buy this product. If your viewers follow the link and make a purchase you get a percentage of that sale (on average about 10%). Many businesses will track this by having the user put in a code so they know who referred them.   

This partnership works well for both parties as businesses are able to advertise their product but only pay if sales are made. If the affiliate marketer isn’t generating any traffic and therefore sales, the business doesn’t have to pay them anything. For the affiliate marketer they have found a way to monetize their blog or channel. And while 10% doesn’t sound like much it can really add up, especially if you have a large audience.  

Affiliate marketing can be thought of like advertising.

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Drop Shipping

Drop shipping can be described as follows. Imagine you want to sell a product, let’s say office chairs. You sell the chairs on your website however you don’t have room or the money to afford to stock all these chairs. So you partner with a drop shipping supplier that has chairs. A consumer will go through your online portal and purchase a chair. Their order and shipping details are sent to the drop shipping supplier and they send out the order to the customer. A percentage of the sale goes to the drop shipping supplier to cover the cost of the chair and the rest goes to you as the business.  

Drop shipping works, as you are able to run a business online and not have to worry about stocking inventory or worry about storage. You don’t need to worry about shipping or shipping costs, that whole process is taken care of for you. For the drop shipper, they only have to focus on processing orders and shipping. They don’t have to deal with customers and problems that can arise there. They are only dealing business to business. They don’t need to worry about marketing or generating traffic or anything like that.

As the business owner and front line you handle all the customers. That means you collect all the customer information, which can be extremely valuable. It’s your store so you can choose the look and feel. You decide what you want to sell and how you want to do it. Maybe you venture from office chairs and start selling desks, or you upsell each customer with a pack of pens. You can start to grow and scale up just like any other business.

Drop shipping can be thought of like owning your own business.

So what is better drop shipping or affiliate marketing?

Well that entirely depends on where you are and where you want to go. I am going to be honest with you; drop shipping is going to take more work. It’s like owning a small business you can’t put in half effort and expect results. However drop shipping carries considerable more upside. It can grow to replace a full-time job with full time pay, and once the automation process is set up without the long hours and work weeks.

Affiliate marketing is great, provided you already have a successful Youtube channel or blog. If you have a large audience established, you can promote products to them knowing at least some portion of your audience will buy it. Affiliate marketing is a way to further supplement the income you already make from your content. Whether that be merchandise, the stipend you make for each post or the pay per click ads you might have, affiliate marketing works best with those to increase your income.

With drop shipping you will see a much quicker return on investment. It will take time in the beginning to get your funnel set up and running but once it is, you can get traffic flowing through and start making sales. With the right help you can get your drop shipping up and working in as little as 30 days, which is what we offer here at NutraFunnels. We have the experts here who can show you how to build you an online sales funnel, show you how to generate traffic and start filling your bank account.

Affiliate marketing just doesn’t have those same returns. Even if you were to start a blog or a channel it could take years to build up enough of an audience where affiliate marketing would work for you. Most people don’t have that kind of time. Affiliate marketing is definitely much easier to do. All you have to do is continue producing content like you already are, you just mention a product or a service and provide a link. That simplicity is appealing to people, but is also why your earning potential is limited.

For me drop shipping is the way to go. You do a little more work at the start, and I wouldn’t even really call it “work.” NutraFunnels lays out a step by step guide showing you exactly how to do everything. No experience is required, and if you do have problems, our 24 hour customer support is there to help. Once your drop shipping funnel gets up and going, the process is almost entirely automated. Customers place orders, their information is transferred automatically to the drop ship supplier and they ship the product out to the customer. You hardly have to do anything!

If you think drop shipping is right for you, don’t wait, sign up for NutraFunnels and start building your own profit driving NutraFunnel.