Dropshipping vs Affiliate Marketing | Which One PAYS More??



The Ecom Geeks show you how to make PROFESSIONAL dropship ads using AliExpress photos & videos. In this InVideo tutorial, …

  • 0:00 | in today’s video i’m going to help you
  • 0:01 | decide if you should drop ship or if you
  • 0:03 | should do affiliate marketing we’re
  • 0:06 | going to compare the earning potential
  • 0:07 | the cost to start and the amount of work
  • 0:10 | it takes before we get into the video if
  • 0:12 | you like videos about winning products
  • 0:14 | drop shipping shopify themes apps and
  • 0:16 | tutorials do us a favor and hit that
  • 0:17 | subscribe button and turn notifications
  • 0:19 | on now let’s get into the video
  • 0:22 | alright so first off let’s define the
  • 0:24 | two really quickly
  • 0:25 | with drop shipping the appeal is that
  • 0:27 | you don’t have to invest in inventory
  • 0:30 | how because what you do is you find a
  • 0:32 | product or products through a website
  • 0:34 | like aliexpress these products are
  • 0:36 | generally really inexpensive then you
  • 0:38 | create a shopify store post that product
  • 0:41 | on your store at a marked up price
  • 0:43 | advertise it and then when you make a
  • 0:45 | sale you then communicate with your
  • 0:47 | aliexpress supplier which is usually
  • 0:49 | done pretty automatically through an app
  • 0:52 | you pay them for the product at that
  • 0:54 | cheaper price supply them with the
  • 0:56 | customer’s address that they entered in
  • 0:58 | on your website and then aliexpress
  • 1:00 | sends the product to your customer so no
  • 1:02 | upfront investment in a product unless
  • 1:04 | you order one for yourself to make
  • 1:06 | videos but otherwise the only time you
  • 1:08 | pay for a product is after you’ve
  • 1:10 | already made a sale affiliate marketing
  • 1:12 | on the other hand you don’t create a
  • 1:14 | shopify store because you aren’t selling
  • 1:16 | the product at all someone else is so if
  • 1:19 | this affiliate program is the amazon
  • 1:21 | associates program how it works is you
  • 1:23 | advertise whichever product you want to
  • 1:25 | but rather than sending the customer to
  • 1:27 | purchase the product from your own store
  • 1:29 | you send them to someone else’s amazon
  • 1:31 | listing and you earn a commission from
  • 1:33 | that sale there’s more to it which we’re
  • 1:35 | going to get into but that’s my brief
  • 1:37 | overview all right let’s first talk
  • 1:39 | about how much it costs to start for
  • 1:41 | drop shipping the first thing you need
  • 1:42 | is a website to sell your products a
  • 1:45 | shopify store is going to cost you 29 a
  • 1:47 | month
  • 1:48 | the second thing you need is a custom
  • 1:50 | domain name you get a free domain name
  • 1:52 | when you sign up with shopify but i
  • 1:54 | don’t recommend using that it’s going to
  • 1:56 | deter people from buying from you a
  • 1:58 | custom domain name looks way more
  • 2:00 | trustworthy and professional a domain
  • 2:02 | name is going to cost you anywhere
  • 2:04 | between nine dollars and seventeen
  • 2:05 | dollars a year if you purchase through
  • 2:07 | shopify for this example just to keep it
  • 2:10 | simple we will say that the domain name
  • 2:11 | is going to cost you 14 a year
  • 2:14 | the last expense i would personally
  • 2:16 | recommend including is the cost of the
  • 2:17 | product you are selling some people
  • 2:19 | don’t buy the product themselves and
  • 2:21 | will just use photos and videos from
  • 2:23 | aliexpress this can work in fact it can
  • 2:25 | even look super professional if you use
  • 2:27 | in video but i do recommend purchasing
  • 2:30 | the product yourself if you can this way
  • 2:32 | you can create your own videos and make
  • 2:33 | yourself stand out against your
  • 2:35 | competitors all right for drop shipping
  • 2:37 | our total is 30 and 42 cents per month
  • 2:40 | that is the cost of a website and a
  • 2:42 | domain name per year that works out to
  • 2:44 | 362 dollars and then there’s the unknown
  • 2:47 | expense of the product and that really
  • 2:49 | depends on what you choose now this is
  • 2:52 | just the bare bones get started kind of
  • 2:54 | estimates down the road you might decide
  • 2:56 | that you want to purchase an app to make
  • 2:58 | your processes faster and more efficient
  • 3:00 | or you might want some money towards
  • 3:02 | advertising but just starting out there
  • 3:04 | are free apps that you can use and as
  • 3:06 | far as advertising goes we have tick
  • 3:08 | tock now where you can advertise for
  • 3:10 | free and reach you get organically is
  • 3:12 | amazing so these are the only costs that
  • 3:14 | i’m going to include as absolutely
  • 3:16 | essential next let’s talk about the
  • 3:18 | amazon affiliate program cost to get
  • 3:21 | started zero you don’t need a website if
  • 3:24 | you’re joining their influencer program
  • 3:26 | you just need a social media account
  • 3:27 | with either youtube facebook instagram
  • 3:30 | or tick tock just like i said for drop
  • 3:32 | shipping though i do recommend
  • 3:33 | purchasing the product you are
  • 3:34 | recommending so that you can create
  • 3:36 | video content but that would be the only
  • 3:38 | cost associated with starting and that
  • 3:40 | price depends on what the product is
  • 3:43 | now let’s talk about the amount of work
  • 3:45 | each of these takes with drop shipping
  • 3:47 | there are a few categories where you
  • 3:48 | will spend your time the first is doing
  • 3:51 | initial research so that includes
  • 3:53 | finding a winning product finding a
  • 3:54 | supplier doing market research coming up
  • 3:57 | with a price and etc then you need to
  • 4:00 | create a website so installing a free
  • 4:02 | theme installing any apps you need
  • 4:04 | adding your product to the store writing
  • 4:06 | the descriptions up setting up all of
  • 4:08 | your shipping and tax settings and etc
  • 4:11 | third you need to advertise so recording
  • 4:13 | video footage editing and posting the
  • 4:16 | time you spend here is going to vary
  • 4:18 | from person to person and it also
  • 4:20 | depends on how many platforms you’re
  • 4:21 | posting on and how often you post but
  • 4:24 | for example if you’re on tick tock you
  • 4:26 | are likely posting one or more videos
  • 4:28 | per day
  • 4:29 | the final category is one that i feel a
  • 4:31 | lot of people who are interested in
  • 4:32 | dropshipping forget to consider and that
  • 4:34 | is the customer support side you
  • 4:36 | yourself aren’t shipping the products
  • 4:38 | but if the customer’s product doesn’t
  • 4:40 | arrive on time if they have a question
  • 4:42 | or if they aren’t happy and want to
  • 4:44 | return it it is you that they’re going
  • 4:46 | to be contacting so this is something
  • 4:48 | you definitely need to think about do
  • 4:50 | you have the time and do you want to be
  • 4:51 | providing customer support is that
  • 4:53 | something you picture yourself doing if
  • 4:55 | not it’s not to say that you shouldn’t
  • 4:57 | do it period because you can always hire
  • 4:59 | someone in the future if you do well to
  • 5:01 | do all the jobs that you don’t like
  • 5:02 | doing but it’s just something to think
  • 5:05 | about
  • 5:06 | as for the amount of work amazon
  • 5:07 | associates take there is no website
  • 5:10 | creation there is no customer support
  • 5:12 | because again this is someone else’s
  • 5:13 | listing someone else is selling it if a
  • 5:16 | customer has an issue they wouldn’t
  • 5:17 | contact you they would contact amazon
  • 5:20 | the biggest pocket where you’ll spend
  • 5:22 | your time is content creation but
  • 5:24 | perhaps the biggest drawback for being
  • 5:26 | an affiliate with amazon is that in
  • 5:28 | order to even be eligible to join you do
  • 5:30 | need to have an existing following at
  • 5:32 | least this is true for their influencer
  • 5:34 | program if you want to join the amazon
  • 5:36 | associates program that’s the same idea
  • 5:38 | but the eligibility requirements are
  • 5:40 | different for that one you need a
  • 5:42 | website to join i’ll have links to both
  • 5:44 | programs in the description box if you
  • 5:46 | want to read more about the requirements
  • 5:48 | but back to the influencer program if
  • 5:50 | you don’t have an existing following you
  • 5:52 | first need to build one so that’s
  • 5:53 | posting a lot of videos to build up your
  • 5:55 | follower account this could take months
  • 5:57 | depending on how fast you grow and
  • 5:59 | depending on which platform you’re
  • 6:01 | building on and then once you have the
  • 6:02 | following and are a part of the program
  • 6:05 | it’s continuing to make videos for each
  • 6:07 | product that you want to advertise
  • 6:09 | our third and final consideration is the
  • 6:11 | earning potential with drop shipping say
  • 6:14 | you sell this product for example this
  • 6:16 | product cost 28.69
  • 6:19 | if you sold it on your website for 59.99
  • 6:22 | and then you offer the customer free
  • 6:23 | shipping but it costs you ten dollars to
  • 6:26 | ship you would subtract the product cost
  • 6:28 | and the shipping which would leave you
  • 6:30 | with 21.30
  • 6:32 | in profit this doesn’t include the cost
  • 6:34 | of your website or domain name so those
  • 6:36 | are other overhead costs to consider in
  • 6:38 | your equation but in this example
  • 6:40 | selling just two of these would cover
  • 6:42 | your website costs for the month and
  • 6:43 | leave you with some profit as well
  • 6:46 | if you were doing affiliate sales on
  • 6:47 | amazon you would earn a percentage of
  • 6:49 | the sale the percentage amount that you
  • 6:52 | earn depends on the product category
  • 6:53 | that your product falls under but for
  • 6:55 | this product in particular it would fall
  • 6:57 | under home which is a three percent
  • 6:59 | commission rate so if this product was
  • 7:01 | selling for the same 59.99
  • 7:04 | you would multiply that by point zero
  • 7:06 | three and your earnings would be about a
  • 7:08 | dollar eighty now that number isn’t all
  • 7:10 | that impressive but the cool thing about
  • 7:12 | the amazon affiliate program is that
  • 7:14 | when someone clicks your link you get
  • 7:15 | commission not only off the product that
  • 7:17 | you link to but whatever else the
  • 7:19 | customer purchases within the next 24
  • 7:22 | hours so if they buy this product in a
  • 7:24 | pair of shoes you also get commission
  • 7:26 | from the shoes if they click your link
  • 7:28 | and decide not to buy the product you
  • 7:30 | recommend it at all but they do end up
  • 7:32 | finding a different product on amazon
  • 7:34 | that they like instead as long as they
  • 7:36 | used your link initially you still get
  • 7:38 | commission from that sale if you want to
  • 7:40 | earn more with amazon affiliates you
  • 7:42 | would just need to be strategic about
  • 7:44 | which product you sell look at the
  • 7:45 | commission rates beforehand and pick a
  • 7:47 | category that pays well and also
  • 7:49 | consider selling higher ticket items if
  • 7:52 | you’re still torn between the two ask
  • 7:54 | yourself two questions what are your
  • 7:56 | income goals and how much time do you
  • 7:58 | have to dedicate to this
  • 8:00 | if you want to earn more money quickly a
  • 8:02 | higher ticket dropship product might be
  • 8:03 | the quickest way if you already have a
  • 8:06 | following and want to earn some passive
  • 8:07 | income maybe the amazon influencer
  • 8:09 | program is the way to go take some time
  • 8:12 | to think about how much time and effort
  • 8:14 | each one of these takes and also do some
  • 8:16 | math write down what you want to earn
  • 8:18 | per month and then figure out how many
  • 8:19 | dropship sales or affiliate sales you
  • 8:22 | would need to get that number i would
  • 8:23 | love to hear from you guys do you lean
  • 8:25 | more towards drop shipping or more
  • 8:27 | towards affiliate sales let me know in
  • 8:29 | the comments below
  • 8:30 | if you like this video do me a favor and
  • 8:32 | give it a thumbs up or leave me a
  • 8:34 | comment down below and if you haven’t
  • 8:35 | already make sure to subscribe we post a
  • 8:37 | lot of time sensitive content such as
  • 8:39 | winning products on this channel so make
  • 8:41 | sure you have notifications turn on so
  • 8:43 | that you can be one of the first to
  • 8:44 | market when we post those videos

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