A lot of people have the desire to start an online business of some sort. The beauty about this type of work is that you can do it anywhere. Most people decide to work from home while others enjoyed traveling and living in different countries while working from their laptop. Some will even rent office space but this is totally unnecessary unless you want to separate your home from business. How many other businesses that you know of that offers this kind of freedom?
Chances are you have reached this article because you are looking for some kind of online business to do. One of your biggest challenges in the beginning is deciding what to do. The question is, will it be ecommerce or affiliate marketing. This is what this article will discuss.
Ecom and Affiliate Marketing – The Differences
With affiliate marketing, you are selling other peoples products. This can be something tangible like a dash cam or an information product. If someone clicks on your affiliate link, you get a percentage of the sale. You never see the products and it’s one of the easiest businesses to get started. With ecommerce, you are basically a reseller of a manufacturers goods. Drop Shipping is a very common model with ecom and here you don’t see the products either but as customers order them you do the same with the manufacturer. You are marking up the products to make a profit.
Cons of Ecommerce
Most of the time, an ecommerce business will require more startup capital than an affiliate business. If you are not doing the drop shipping model, you will need to order the products, have them shipped, labeled boxed and then re-shipped to your customers. This model is time consuming but the advantage is that your customer will get the products sooner than with drop shipping from China.
Advantages of Affiliate Marketing
Because you are selling other peoples products and/or services, this means you never have to worry about stocking your shelves, customer service, shipping, etc. All this is very time consuming so you can focus on one thing – marketing.
Another advantage is that the startup costs are very low. You could set up a free blog on a web 2.0 property or start a Youtube channel where you can talk about products that you like and have an affiliate link. You can also start today, right after reading this article.
Disadvantages With Affiliate Marketing
The biggest disadvantage is that you are held to the mercy of the affiliate. If for some reason they drop their affiliate program, you stop getting paid. Or, they may lower commission rates or even go out of business. This is why you can’t stick to one business or affiliate, you have to diversify.
Another issue is the restrictions. You have to play by the rules. For example some affiliates do not allow you to use any negative keywords in your campaign like “scam” and so on. So you are pretty limited with what you can say.
Also, once the affiliate has the customers information, you no longer own that customer, the affiliate does and they can market their other products and services to them directly, cutting you out in the process.
I like both models but as a beginner, affiliate marketing wins hands down. This is because of the very low startup costs. It’s much better to fail time and time again without losing much money than the opposite. In any online business be prepared to fail. The ones that win are the ones that stick around and keep trying until they see success. You can get more info on this on a review blog of internet marketing products, just have a look at ecommerce and affiliate marketing reviews by Drew’s Review for more information and inspiration. If you’re going to buy any courses, make sure you check reviews for that course first as you don’t want to be buying a dud.