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To become an affiliate or a reseller - Which route should you choose, and why?



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To become an affiliate or a reseller - Which route should you choose, and why?

A ton of people want to sell something online, but they might not have their own products, so do they become an affiliate or a reseller?   Now, both of these have benefits and weaknesses, so I'll try to cover both as well as I can in order to give you a better understanding of what is needed for both and hopefully that gives you enough information to make a choice.  In the beginning, people tend to get pulled in a few different directions when it comes to specific methods and "tricks" to making money.  You can make your own service and sell it, you can become an affiliate and make other people money while getting a commission, you can sell other peoples products and have the customer think it's actually yours or you can try to go the authority website route and get advertisers to pay you for ad spots.  Each of these routes can make you a lucrative amount of money, or they can make you go broke pretty quick lol.

In the world of online marketing, there seem to be a lot more affiliates because of how easy it is to get started.  Take SEOclerks.com for example, you simply have to register an account and you're already set up with affiliate links and banners which you can promote to random people online in hopes of getting them to come here and make a sale, making you some money.

On the other hand, you have something on the other side of the spectrum, and that is drop shipping.  Sure, they have similarities if you are an affiliate for a physical product, but they're actually pretty different in terms of how everything works To become an affiliate or a reseller - Which route should you choose, and why?  In this discussion, I'm going to be going through the ups and downs of affiliate marketing and drop shipping so you can see which would be best for you.


Affiliate Marketing
This method to make money online is where you sign up for a system like SEOclerks, Amazon, Clickbank, and various other networks in order to get links for offers and services so you can place these links in front of potential buyers.  People have made millions from affiliate commissions, but they are the 1% of the 1%.  The average marketer doesn't break the bank with affiliate marketing right away, it takes time, but it can make you enough money in order to have a stable enough income to quit your job if you keep it up To become an affiliate or a reseller - Which route should you choose, and why?

The Good:
Affiliate marketing is good if you don't want to talk to people.  You'll basically be signing up to get some affiliate links and getting a website some traffic in hopes of making a sale.  When you do make a sale, you will get a commission from it and get paid out at a specific time during the month.

There is no language barrier when it comes to affiliate marketing.  If you only know English a little bit, that's good enough for affiliate marketing because you don't have to chit chat with potential buyers, that's the website owners responsibility.

The Bad:
The downside of affiliate marketing is that you will usually feel like you're making someone else rich.  This is because most of the good products or services won't give you a 50% commission or higher.  Take Amazon, for example, you can get up to I think 8% commissions per sale, and that's not very much.  Digital products tend to give you a high commission, but they're not always the easiest to sell unless you've been doing affiliate marketing for a while and know a lot of little tricks in order to get sign-ups.


Dropshipping
When you become a drop shipper, you're basically agreeing with a company that you're going to sell their wholesale items for a price you want to determine on your own.  I've actually been doing drop shipping for a while now and I'll sell high then buy low.  Some of you are saying "You said that backward, it's buying low and selling high!" but I did say it right lol.

The Good:
The real beauty with drop shipping is that you don't have to invest in a bunch of stock in order to sell a ton of items on your website.  You simply list the items on your website, and when you make a sale, you go to the wholesaler or website with the product and purchase it with the buyers' information but using your own payment option. 

Drop shipping is good if you want to be portrayed as a big authority website, with hundreds or thousands of products, but you don't have the money to invest to actually purchase the products and fill up a warehouse.  You can make a lot of money with drop shipping if you do everything right.

The Bad:
The bad thing about drop shipping is you will always be worrying when you get a large sale.  You will get the sale, purchase the product and have it shipped to the buyer.  But what you'll be worrying about is fraudulent transactions from people who want the item, but have planned to file a chargeback even before they ordered it.  This happens every single day and it's a business killer because you not only have to cover the cost of the item(s) you just purchased from the wholesales, but you now have your own price deducted from your balance.

Look at it this way, if you started out with $0 in your account and you have someone purchase a $1,000 order, that's awesome!  Now you have $1,000 in your account but it costs you $500 to buy and ship the items to the buyer.  That's not a bad deal at all, you now have $500 sitting in your account and that's all profit from not having even touched the product lol.  The really bad part of this is when someone purchases high ticket items and then files a chargeback after they get the goods.  Since you have $500 sitting in your account, you can't cover the $1,000 that just got charged back to you, so now you're -$500 and if you didn't prepare for this, you're going to have to dissolve your company or figure out a way to fix this.




In Conclusion
There are always ups and downs when it comes to any sort of method to make money online.  Some of the bigger risks will have better payoffs, but they could also bite you in the butt and make it more of an uphill battle to get back to where you started off.  Most marketers will start off with lower-priced services and products so they don't have to worry about chargebacks as much, so I would recommend that if you do decide to get into drop shipping and don't have a decent amount of money to protect you from going negative To become an affiliate or a reseller - Which route should you choose, and why?


Remember to follow me!
https://www.seoclerks.com/user/Razzy


Thanks!

Razzy

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great information can you guide me where i promote my seoclerks affiliate link?



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vinaya

I have been doing affiliate marketing since 2012, and I have one affiliate website but without any major success. I have, of course, sold affiliate services and products but not much. I have never done dropshipping, however, I am thinking to convert my affiliate website into a dropshipping business. I hope this works for me. I do get clicks on my affiliate products, however, the sales are very negligible. When it comes to affiliate marketing, perhaps, finding the product on the different website, rather than the website they have checked in, is a great turn off for the buyers.



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vhinz

Thanks for sharing your insight about affiliate marketing and dropshipping. I think for those who want to start with online money making and not yet ready to take the risk should start with affiliate marketing because they don't have to worry much when customers chargeback for the items they have purchased. Dropshipping needs time to get customers orders and place it on suppliers order page while in affiliate marketing, you just have to drive traffic to the vendor's website in order to get a commission.



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Everett

I rather do affiliate marketing because there is not much risk invovled. I have tried tried dropshipping but I never really had any successes with it so I just stopped doing dropshipping. However, I have been doing affiliate marketing for years, probably around 8-9 years - I forgot when I initally started but it was around 2010. This was a time where it was kinda easier to do affiliate marketing because there was not that much competition in those days. But years later, there seems to be so much competition it is very hard to sales.

I mostly am an affiliate marketer for SEOclerks, or the ionicware marketplace, but really just for SEOclerks. It is a small income that seems to grow day by day. I would post my affiliate page screenshot but I do not want to make any of you jealous, however I do not make that much.

I hope to at least grow my SEOclerks affiliate commison by X2 in the month or so, I think I can actually do that. Basically what I have done for those that are wondering is to create a marketplace that uses the SEOclerks API and just list the services with my affiliate link.



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AmieBotella

I currently have a small online store and I tend to stock up on small quantities of items and try to sell them in my community online. It is hard to put it up and gain buyers but I am grateful for every step I am learning through the process I am in. I would eventually hope to venture in dropshipping later on and the problems you mentioned are the ones I am studying right now. Also, there are cases wherein the supplier you decided to get your products might also bite you back. But in every business there are always risks involved. You just don't rush into things even though you've got the money to run it so that your growth will be gradual and just right into learning the craft of the business you\re going in to. As always great article for us.



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overcast

Dropshipping is not cheap. And I have done the research on this. And you are supposed to spend a lot of money on the orders. And setting things up on the shopify takes time. You can see that affiliate is lot more cheaper option. And that requires you to focus on the traffic which is something you can learn and make use when you start with the dropshipping. And that's why one has to start with what makes them comfortable.



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TommyCarey

Dropshipping is very cheap because you just have to set up a website and sell products.

You don't have to worry about inventory and shipping, which is why it's so enticing and a lot of people choose to get into this area of sales. The main downside is that people will file chargebacks, and that means you lose 150% of the sale. You lose the initial payment as well as the money you used to pay for the product, which puts you in the hole if you lose the transaction.

To reduce big losses, you should target lower priced products and build up your profits over time. Later on you can sell higher priced products, but you should never jump right in unless you have capital to back up any losses that might generate within your first few sales.



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overcast

What I have seen so far in terms of the investment. Shopify costs 29$ per month. Let's take total value as 360$ per year. Which is a big investment at this point. Plus before shipping one has to be paying to the distributor and get the money before shipping from customer. So on that ends, there is an credit card investment for plus and minus balance and returns or say refunds. I have to do more research on this for sure.



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centurion

All over I shall take the affiliate facility for any product promotion or for marketing. Besides SEOClerks works- Currently I am planning to do SEOClerks affiliate marketing and got some tips from one of my faithful friend. This article will also help me to become successful.



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kgord

All I can say to this is there is no free lunch. There is an element of risk involved in everything unless you are strictly working for yourself. I think that you should just do the things that feel right to you, and if you don't succeed with one avenue you can always try another.



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Martinsx1

I think that affiliate marketing is a lot more better for my preference. Yes, it's true that it doesn't get one rich immediately but with time and if you are good at what you are doing, things will start going well for you in the SEO work. It's very important to note that patience is a very necessary feature one that is heading into affiliate marketing mush have. It's not a get rich immediately scheme.



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juliafer

Hope that people will take time to read this great tips and review of making money online. Most of the people starting it without better research. Most of them think it's way too hard and risky, and other most of them think that's very easy. These who start it with "very easy" thoughts, mostly bump into this hardship when they realize how much time they have to invest into researching for right business or products to deal with and they give up. But online business is presence and future of trading, so sooner we decide to start with, sooner we will be making money online. I personally love affiliate marketing, I started doing affiliate marketing in 2012. It has been 5 years, however, I can count how many products I sold. True, it takes time to build affiliate income. However, it is also true that for some people it may never build. In order to earn from affiliate marketing, you need to
promote the right products, in the right ways. However, the right ways and the right products differ people to people. I personally recommend using cashback websites, coupons website or daily deals websites to earn more because people want a discount on everything they buy. I have my own coupons websites that generate more than 3000 GBP in 2017. If you want to start your own coupons or discount vouchers website then this article might help you to get you there. Learn How to Setup a coupon website.



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Corzhens

My direction is toward affiliate marketing because I couldn’t handle selling anymore. I have many friends in Facebook who are into re-selling that they earn good money because they use Facebook as the venue of their marketing. With affiliate marketing all I need to do is to promote the product and that’s it with affiliate marketing. However I need to have a website of my own for a more efficient affiliate marketing.



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Alyopsis

That’s a really good article full of useful information.

For me, affiliate marketing is the winner because it’s a business model that’s entirely portable. You can run it off your laptop and little else. Overheads are zip and there are no inventory issues. You can be truly nimble and adaptable. There are few business models like it.

Yes, the market is crowded but if you have good content and push the content out (in a nutshell, do some work) you can do well.

Once again, great article. I’m printing it out.



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cmoneyspinner

I have tried drop shipping. I have tried affiliate marketing. I have to say affiliate marketing is just way easier. Maybe that's just me.



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