Two methods of setting up reasonably passive income online are dropshipping and affiliate marketing. At first glance, they seem somewhat similar, with a few pros and cons for each that can make a decision easy. But wait! There are actually some subtle differences that might sway you in one direction or another. Which one is better, and which should you pick?
As an affiliate, the sky is literally the limit. Since we are not constrained by how many orders we can process in a day, or how many customers we can deal with in a day, our income potential is limitless. Assuming we pick the correct niche and get good SERP rankings, we are golden. Of course this is easier than it sounds, but when you get traffic, it is free, except for your time. (We don’t use pay per click, so we rely strictly on organic search engine rankings to drive traffic.)
“It is absolutely vital to provide them with real-time reporting. Obviously, this reporting needs to be 100% accurate with integrity. Some affiliates will be running 100+ different sources to your offer, and by offering them real-time reporting, they can quickly determine which sources are working and which are not. You save yourself money as well as your affiliates. This also helps scale quickly if you have a good performing offer,” he said.
After being putative into an affiliate program, marketers receive a unique URL that includes their affiliate ID. They share that unique URL with their subscribers, site visitors, and social networks via text links or ads. When somebody clicks on that link, affiliate software accounts that click and any resulting creation sales in the affiliate’s account. When directives reach a pre-determined verge, the associate is paid.
William Harris is leading content at Sellbrite and is also the Founder & Growth Marketer of Elumynt, LLC., VP of Marketing and Growth for a top 700 online retailer and former head of Marketing for When I Work, a VC backed SaaS company. William is also a contributor to leading publications like The Next Web, Search Engine Journal, Social Media Today, and Sellbrite and a speaker at industry events covering topics such as marketing strategy, search engine optimization, content marketing, digital marketing, social media and personal branding. Follow William on Twitter (@WmHarris101), LinkedIn, and Google+.
“At times, affiliates may not be driving traffic or converting as much as they used to, or as much as you know they’re capable. This can be a lack of new offers or promotions, or they may have promoted a certain product too many times, and their list is burnt out on it. This is more common than you may think,” he said, but added that “several things can be done to alleviate this.”
Hi Jamie, awesome content that is very helpful esp with the resources, links and the rich discussions. Want to start e-commerce and blog for money…selling others products, want to go full on with this, tired of the daily routine crunch working for others. I live in a developing country (PNG) that has high internet costs (work still in progress with getting rates down…) so will see how I go with your posts. Any advise? Don’t have a website yet, have to build one I guess….
The links fit anywhere a normal anchor link would go. But, in this case, the traffic is tracked by a network or software and the content creator gets a cut. You probably have plenty of products around your home that came about as a recommendation after watching a cool YouTube video – it’s very likely they sent you to the site through their affiliate link!
Because 2Checkout exclusively sells software and digital products, it is best suited for established influencers whose target audience is interested in buying products in this niche. But while you won’t find any physical products for sale, 2Checkout is probably the market leader in selling software of every type, including very specific use case items (like software that can convert Microsoft Word documents to PDF, for instance).
Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s own marketing efforts. Examples include rewards sites, where users are rewarded with cash or gifts, for the completion of an offer, and the referral of others to the site. The industry has four core players: the merchant (also known as ‘retailer’ or ‘brand’), the network, the publisher (also known as ‘the affiliate’), and the customer. The market has grown in complexity to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialised third parties vendors.
File-Sharing: Web sites that host directories of music, movies, games and other software. Users upload content to file-hosting sites and then post descriptions of the material and their download links on directory sites. Uploaders are paid by the file-hosting sites based on the number of times their files are downloaded. The file-hosting sites sell premium download access to the files to the general public. The websites that host the directory services sell advertising and do not host the files themselves.
When dropshipping products, you can easily retarget your audience to help convert the sale. With affiliate marketing, since you’re sending the traffic to another website, you have no control over retargeting. With dropshipping, the traffic comes to your own website. Also, you have control over the optimization of your landing pages, product copy, website design and more. The checkout will also match your website’s branding. As you have more control, you better your odds of attracting a customer and converting them.
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Cool i personally do agree with the idea of making money via affiliate marketing. Blogging for a reason. make sure you target the right traffic and your affiliate marketing will never disappoint youThis is a marvelous site with a funny name. Thanks for all the info. Both affilitate marketing and drop shipping works in their fantastic way. It now boils down on the one you can handle. Every business comes with their risks, you just have to choose the one that works for you.