Both affiliate marketing and dropshipping require similar skill sets. To be successful in either you’ll need to be able to market your products by creating ads and driving traffic to landing pages where customers will buy the product. This might not sound too difficult, but it can take a while to start seeing any significant number of people actually buying products using your site or links.
Before I get into details, I’ll say one thing up front; both are perfectly viable business strategies. They both have checkered pasts with spammy abuse and high quality use. The difference between them comes in infrastructure and setup, as well as how you go about managing the business you create. Neither is inherently better than the other; it comes down to what you want out of the business, what you’re willing to put in, and which system seems more appealing to you.
So as an affiliate marketer, you have to build a compelling website, attract traffic to that website, and retain a consistent audience in order to sell ads. Then, you join an affiliate network like Amazon or eBay, and they show ads on your site. It’s important to note that affiliates don’t earn money by simply serving ads. They have to direct qualified traffic to a company’s site so that the company can earn more in sales.
I suppose it could be a different story for me since I’m more focused on the blogging area of internet marketing. Speaking of, what do you think the benefits/drawbacks are of the blogging approach vs. the email only approach when it comes to internet marketing? A lot of SEO “gurus” out there say blogging is essential because of the extra link-power it can give your site. Obviously you’ve had a lot of success with both approaches – what’s your opinion on the issue?
Using a variety of bonuses and incentives makes these products more appealing to your subscribers. For example, if you’re recommending a product such as a hosting service, you could create an e-book that helps purchasers learn and use the service. People love to feel like they’re getting something for free. So, dress up your affiliate products with irresistible offers that make people jump!
The process is very simple: you send people to Amazon (or another affiliate program) using a special link, which puts a cookie on their machine and tags their purchases with your affiliate code. When they buy something, you get a cut of the profit – starting at 4%, I believe – because you referred them. You don’t need to do anything else. You don’t ship anything, you don’t handle customer service, you don’t even need to make yourself a trustworthy storefront. All you need to do is get people to click through and buy.
You just keep sending out something new to your email list on a regular basis and people will purchase from you. You will need to use what is called an autoresponder service to do this. You can try aweber.com or icontact.com or getresponse.com. They are three of the best. There is also a free one that is called mailchimp.com. Steve talks about mailchimp and aweber in his posts. Of course not everyone will purchase from you, some will purchase more than others.
If you don’t already know what drop shipping is, it’s the retail method in which you don’t keep products in stock. Instead of warehousing, you partner with a drop shipping supplier that stocks its own inventory. You transfer customer orders and shipment details to them, and the suppliers ship the order directly to the customer. Here’s a graph to help you understand the drop shipping business model:
“Cost of goods changes from time to time, product prices drop, etc. One mistake I made was not re-calculating all commissions to determine they were set correctly. After doing some digging, I realized that commissions on a few of our products were way higher than what they should have been. One way to fix this is to re-adjust commissions each year,” she explained.