Drop Shipping vs Affiliate Marketing – Which Should You Do?

What is the difference between drop shipping verses affiliate marketing, and could you do both?

The main differences between the two as far as I can see, is the upfront costs required to do drop shipping.

Drop Shipping

Drop shipping is what some term as product arbitrage, which is a fancy word for buying in a product in at a low price and then on selling the product at a profit.

This model is what is what most people are familiar with in the marketplace. To see it in action all you have to do is go to your local supermarket and buy stuff off the shelf. The owners of the supermarket have basically bought in product and then sell it at a profit.


One of the draw backs to drop shipping is that you must have either a substantial line of credit to buy in the products at a reasonable discount or you have to have a large sum of cash on hand to buy in the product. Either way, you will be spending hundreds if not thousands to get setup before you even have the opportunity of making a profit.

Warehouse costs

You will also have to have a warehouse to house your inventory. The warehouse space requirements are subject to the size of your inventory. You may need to consider specialized warehouse facilities depending on what you are storing. For example, if you have a lot of frozen inventory like ice cream for example, you may require a warehouse with refrigeration. Some to keep in mind.

Shipping costs

With physical products you will also need to take into consideration shipping costs. If your product sells for say $20 and your shipping cost $25 then you are at a loss of $5. So this figure needs to be considered and either added onto the price of the product or built into the margin of the product.

Affiliate Marketing

Affiliate marketing on the other hand has a lot more going for it. You see, with affiliate marketing, all that you’re concerned with is marketing the product to a high targeted segment in the marketplace.

If you can do this successfully, then you can potentially make thousands of dollars. Some top affiliates can earn hundreds and thousands of dollars.

No inventory

With affiliate marketing you have no inventory costs, because you don’t own the product . And even though you don’t make as much money in the transaction, the owner of the product has a lot more to worry about than you. All you have to do is to get qualified buyers to the product.

Low overheads

So with this in mind, it means that your overheads are super low, and all you have to do is to concentrate on getting people to your affiliate product page.

No shipping costs

You don’t have to worry about the shipping requirements as this part of the process is handled by the owner of the product.


If you’re a good marketer then the affiliate marketing model is definitely the way to go.

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What Are The Pros and Cons of Affiliate Marketing?

Seems like every man and his dog jumps into affiliate marketing, because is can be a very good way to earn income for just about anyone who has the time and who is wiling to put in the effort to get an online business up and running.

But are they cons in becoming an affiliate marketer or are the pros to affiliate marketing out weigh the negatives? This article is a discussion on the pros and cons of affiliate marketing.

So if you don’t know what is affiliate marketing then hopefully this article will help to answer that for you.


Low cost startup

Affiliate marketing is a business that can be started with little to no money at all. I don’t know about you, but there aren’t too many businesses that can be started with little to no capital. All that is required is a website, the purchase of a domain name and some hosting.

In fact, you don’t even need to purchase a domain name or hosting as there are resources on the internet that will enable you to start for absolutely nothing. One such site in blogger.com and wordpress.com. You can start a website for free with either one of these CMS platforms.

No inventory needed

Most start up businesses require inventory. This usually means that you have to fork out a large sum of money or have a large line of credit with a manufacturer. But with affiliate marketing, you don’t have to worry about hold or warehousing any inventory at all as all of your inventory belongs to the vendor.

All you do is simply bring people who might be interested to the product and see if they buy it. And if they do then you get paid a commission for your efforts.

You also don’t have to be concerned with shipping requirements as this is all done by the vendor.

Potential to earn a lot of money

So, if you can get enough people coming to buy the product, you can potentially earn a lot of money. a know of some affiliate marketers who earn over 7 figures per month. So it is definitely a lucrative business model.

No special knowledge needed

Affiliate marketing doesn’t require any special knowledge to get started, but the right guidance can go a long way to earning your first dollars in a short space of time.


Some markets are too competitive

A lot of new affiliate marketers go right into the most competitive marketplaces when they first start out online. And after a month or two wonder why they are making any money. And the answer is because they entered a competitive marketplace.

Some of the leaders in the marketplace have been there for a number of years and know the tricks to keep them in the forefront of that space, which means that any new competitor will have a difficult time entering that space.

Can take a while to develop business

Just like any business, it can take you a while to start seeing any evidence of progress, and this is where a lot of new marketers fall by the wayside. If they don’t see anything happening over a month or two they lose interest and finally give up.

The average (new) affiliate (depending on how persistent and energetic they are) will start seeing results anywhere between 3 – 6 months. That can be a long time for newbies to wait.

No special knowledge needed

I know I mentioned this as a pro, but unfortunately it’s a double edged sword in that because there is no special knowledge required, it means that anyone and everyone can enter the marketplace.


So there are a few pros and cons with affiliate marketing. In essence, if you are looking for a low or no cost way to start earning money online then affiliate marketing could be a good way to do it.

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Learn How To Do Affiliate Marketing Step by Step

Learning affiliate marketing can be a pain in the rear if you don’t know where to start.

Fortunately, it’s not as difficult as some might think if you have the right mentor and are ready to put in the time and effort.

Whilst there are several ways to begin the process of affiliate marketing, there are really only two main things you need to become good at. Both fall under umbrella called traffic.

Traffic comes in a variety of forms, but the two main forms of traffic are paid and organic traffic.

Paid traffic


This type of traffic is instant, and can be available in large volumes which means that you could be earning money the instant your ad goes live.


The cost of the ad can be quite high, some ranging around the $0.50 to $1.50 mark per click. And given some products convert at 100 clicks, means if your product is sells for less than $100 could mean you won’t make a profit.

Develop your own traffic


The traffic is essential free. You do have to put in the time and effort to create content that well rank in the search engines, but you only have to do it once. They more content you publish the more opportunities you have to pull in more qualified visitors.

Once this traffic has been developed it can keep producing new visitors to your offer day in and day out.


It can take a while for the traffic to rank and therefore get visitors. For example, one of your posts could take up to a month or two to rank, so there could be not income for at least two to six months.

Offer that Converts

Whether you’re using paid traffic or organic traffic, you must always look at the product that you’re promoting to ensure that it will convert into sales. Because whilst you might have the visitors coming to see your offer, they might not purchase the anything if the sales copy is not conducive to a sale.

Stands to reason really.

That’s why it is important to select from the best affiliate companies.

To understand what offer converts the best you can just swap out offers to see which one converts the best. Once you understand the numbers then you promote the best converting product in full knowledge that you are not sell yourself short.

Vendors can show proof of conversions

Most vendors these days will show proof that their product sell well online in order to get as many good affiliate marketers promoting their products. If a vendor can get affiliate paying for traffic instead of themselves then they will benefit from it.

I always tend to promote vendor who show evidence of conversions, because it means that if they can get it to convert then I will be able to do so as well.

Follow a tried and proven process

There are a number of ways to promote products however, they are tried and proven methods available that most new folks don’t get to see. But if you can find someone who is willing to show you their proven process then go for it. Even if it might cost you a few pennies to do so.

If you can understand and implement a process and get it to work, then all you have to do is to rise and repeat the process until you have developed the income you want.


So it is best to learn this craft from people who have experience in this field. But once you become good at affiliate marketing, then it’s a case of rinsing and repeating the process over and over again until you are earning the money you want to earn.

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Finding A Niche For Affiliate Marketing

Affiliate marketing is quite broad in a marketing sense, so in order to specialize in one area, it is important to concentrate your time and energy into developing an online strategy in a particular niche.

What is a niche?

Simply put, a niche is a segment of the place market that you want to target your marketing towards. It is a highly target group of people you identify as being the ideal candidates you want to market your products to.

Are All Niches Created Equal?

You could say that all niches are equal in terms of the audience they attract, however in most cases, a very profitable niche can be determined by the amount of interest there is in that marketplace.

For example, there’s probably a bigger market for iPhones, than for some unknown smartphone manufacturer. Therefore one could say that there is a lot more profit to be made in the iPhone market than the unknown brand.

Which means that not all niches are as profitable as each other.

Do You Have To Be Passionate About Your Niche?

You don’t have to be passionate about your niche, however it does help if you do have a intimate understanding of how your target group of people think.

Understanding their problems, wants and needs could help you to tap into that segment, because you know and understand what makes them tick.

How To Spot A Profitable Niche

As I mentioned earlier, one of the biggest ways to know whether you are tapping into a profitable niche is to understand how much interest there is in a particular niche.

And the way to do this is to get an understanding of how many people are typing in certain keyword phrases into the search engines that relate to your niche.

Is there Traffic?

Finding out how much traffic keyword phrases have for some of the common issues your niche faces will tell you whether or not you should spend time developing that niche.

If there is significant traffic, then that could point to there being a lot of interest in that niche.

Are there other affiliates in that market?

If there are other affiliates in that marketplace then this could mean that other people are making money in the niche, which means that if you can get a spot next to their in the search engines or through paid advertising then all you have to do is to create content that is more compelling than your competitors.

Are there a lot of products being developed by vendors?

If you find that the marketplace has a number of product creators then this is also a signal that the marketplace is profitable because product creation can be expensive.

But it is important to chose from the best affiliate programs out there. There’s no use in spending the time and effort developing the traffic for your niche to find out that payout is low.

So choosing from the top affiliate programs will help to ensure you get paid.

Are there Adwords ads displayed in the results?

An easy way to find out whether a product is profitable is to identify if the product creator is spending money promoting their product via Google Adwords? Also, to find out if there are other affiliates doing the same thing.

You see, if people are spending money on advertising, then it only makes sense that they are earning more money than they’re spending, otherwise they would be losing money.

So in Summary

Identify whether there is a lot of interest in your marketplace by performing keyword research and understand how much search volume main keywords have in your niche.

Look to see if there are a number of product creators in the niche and whether product owners and other affiliates are paying for advertising.

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Steps To Creating Successful Affiliate Marketing Websites

Choosing A Brandable Domain Name

This is not a big issue, but finding a domain name that is brandable as opposed to and EMD (exact match domain name) is probably the best solution going forward unless you know a lot of seo.

Good Hosting

Not all webhosts are created equal. Some webhost providers have shocking support and shocking uptime.

I have heard story from some webmasters who have had websites down for days because their webhosts haven’t been able to fix a problem. This is a big problem if you earn hundreds and thousands of dollars a day.

Use reviews on companies to get an understanding of what webhosts are the most reliable.

Easy Way To Create & Manage Content

WordPress is probably one of the easiest free content manage tools available in the marketplace that offers a wide range of plugins that will give you just about all the free functionality any webmaster could ever ask for.

Since content is the lifeblood of all websites, being able to create content easily and effortlessly is essential to a successful affiliate website.

Affiliate Programs

Whilst there is a plethora of affiliate marketing programs to chose from, not all affiliate marketing programs are created equal. Some programs payout at a high rate and some affiliate programs don’t payout at all.

So it is important that you do your research when it comes to who you work for.

Keyword Research

Being able to identify what keywords phrases you can rank for in the search engines will help you to create a more successful affiliate marketing website.

In the past people who were new to affiliate marketing just wrote about anything and everything and wondered why they weren’t getting any visitors to their websites.

And the biggest reason why people fail in this area is because they are not identified the right content pieces to create. Creating the right content pieces is literally the difference between getting visitors coming to your website and not getting visitors coming to your website.

Compelling Content That People Read

Create content that makes the reader want to keep reading all the way do to the end of the page. That way you can link out to other pages on your website that may be of interest to them.

The key is to get people reading your content and then reading even more of your content. The longer a visitors stays on your website the better. This then signals to the search engines that the content you are providing is high quality and that more of your content should be ranked higher in the search engines.

Interesting Images

Images go a long way towards capturing and keeping your visitors interest in your content. A lot of people take visual cues from well selected and well placed images. So if it makes sense to put in an images then  do so.

But don’t clutter your website with misplaced images so as to appear as if you have a lot more content on your page than you actually do.


Always try to make your content on your website personal. No one wants to read formal writing. Formal writing screams “boring”. So try and make your content personable as if you person you are writing for is one of your friends.

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Should You Start With Adsense Or Affiliate Marketing

If you are looking to start up on your own and are considering opportunities online, this thought must have definitely crossed your mind “Should I start with Adsense or Affiliate Marketing?”

This is a very common confusion most people have since both these options have some similarities in their working model.

However, the differences between them are huge and a mistake in choosing the right option can leave you with a ‘not so successful’ attempt.

Both Adsense and Affiliate marketing have their own pros and cons but Affiliate marketing has proved to be a more successful and commercially viable approach.

A comparison between the two will help you understand this better.

Which makes more money?

Since money making is the key objective, let’s address this first. Adsense pays you 68% of click cost for each click.

However, the click costs are generally very low and hence you make substantial revenue only if you have a very high click rate.

Affiliate marketing on the other hand pays a commission varying anywhere from 2% to 50% of the sale value.

Hence by choosing the products you wish to sell strategically, you can easily make good money.

But is is best to go top affiliate programs so as to maximize your time and effort, simply because they offer the most payout for your results.

Easy to begin?

Adsense requires Google’s approval which is not very easy to get.

Affiliate marketing on the other hand requires you to join through an affiliate program which is quite easy since there are many affiliate product sources in the market.

Effort required?

Affiliate marketing requires more effort than Adsense because you are involved in selling the product.

It requires you product reviews and descriptions and to maximize sales, you can also start creating your own email lists comprising of existing and potential customers who review your recommendations and trust your advice.

All this however requires considerable amount of effort and pays well in return.

Adsense only requires you to position the ads on your website and they Google takes care of automating them based on your website content.

Hence Adsense is a low effort, low gain strategy.

Control over your products?

Affiliate marketing lets you choose what kind of products you wish to publicize and sell.

You can choose products of your interest and write about them which helps you create a niche blog or website.

In Adsense the products being displayed are controlled by Google.

Though Google customizes the ads based on the content of your website, you cannot however control it.

Short term vs Long term gains:

Affiliate marketing is a method that can fetch you long term benefits. The revenue model is such that it can be scaled up to generate sustainable long term profits.

The email lists, personal contacts and followers of your niche blog can work generate continued revenues and help expand your business.

Adsense provides easy, short-term benefits but there is no planned expansion possible.

Affiliate marketing is a great way to get started on their own for those who are serious about creating a long term sustainable revenue model and are prepared to put efforts to do it.

An initiative that can be started with very low cost, affiliate marketing surely provides better returns than Adsense.

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How To Do Keyword Research for Affiliate Marketing

In case you are a blogger, you already know various ways to earn a good passive income on the Internet. You must have also heard about affiliate marketing.

It is considered to be the most effective way to make an online income. There is no doubt that affiliate marketing is a great way to earn a good income.

However, it requires you to market and promote products properly. Thus, you need relevant and high quality keywords. Regardless of which affiliate network you chose to work with , keyword research is paramount.

In this post, we have discussed some simple ways to help you with keyword research for affiliate marketing.

Manually Brainstorm Keyword Ideas

Unfortunately, this is considered to be a frequently overlooked method. With manual brainstorming, you can start the process of researching keywords.

You just need to use a pen and piece of paper. These days, there are also some effective online tools to help you with brainstorming.

Look for Seed Keyword Inspiration

Once you have penned down a few phrases and words during the brainstorm session, it is time to build an in-depth seed keyword list.

In case you have some specific products in mind, you should look at their sales pages.

If you aren’t focusing on specific products, you should look at sales pages in your niche on popular websites, such as Amazon, Clickbank and more.

This helps you understand what kind of keywords big players are using.

Save Juicy Keyword Sources

While browsing these Q&A threads and forums, it’s recommended to bookmark the ones that seem effective.

In the long run, this helps you save a good amount of time. It’s never a bad thing to have a backup plan.

If certain keywords are always active, they will have the latest terms and language thrown around in the content.

This is perfect for effective seed keyword building.

Don’t Ignore Buyer Intent

According to experts, it’s easy to be tempted to use only high-volume keywords. However, you should never ignore buyer intent.

Most entrepreneurs and amateur affiliate marketers fail to understand this aspect.

In simple terms, buyer intent keywords are phrases or words that include the clear indication of a sale.

In other words, you should add phrases or words like ‘lowest prices’ or ‘buy’ in the beginning of the keyword.

This makes sure people looking for such terms are able to find your product easily.

Use Tools to Generate Long-Tail Keywords

Just like buyer intent, it’s important to be specific with your keywords. When you’re more specific, people are more likely to visit your product page.

Long-tail keywords are a good tool to achieve positive results. These days, you can choose from a wide range of tools to develop a list of long-tail keywords.

These tools are easy and simple to use.

A lot of want to know how long their keyword list needs to be.

This always depends on how complex or big your service or product is considered in the market.

Unless you’re planning to develop a keyword list for a major business corporation, dozens or hundreds in a list is fine.

In order to achieve best results, you should consult experts in the field.

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What Is The Difference Between MLM and Affiliate Marketing?

What is the difference between MLM and Affiliate Marketing?

You are probably looking for an answer to this question if you are new to making money online or you have just heard about them.

Both affiliate marketing and MLM (Multi-Level Marketing) provide a way to make money online. Knowing the difference between the two will help you choose the one that suits you best.

What is Affiliate marketing?

There are three parties involved in affiliate marketing. The three parties include the customers, the merchant and the affiliate.

The work of the affiliate is to send customers to the merchant to be able to earn a commission.

The affiliate gets a commission from every sale made to the customers that he sends to the merchant.

The percentage awarded to the affiliate varies. It depends on the agreement between the merchant and the affiliate.

There is no limit to the number of sales that an affiliate can make. This means that there is no limit to the amount of money that an affiliate can make.

There are many ways to set up an affiliate marketing business. One of the most popular ways is creating a website and reviewing the products offered by a merchant.

Most people who want to make purchases online look for more information about products.

If you offer valuable information to them on your website, you can convince them to buy from a particular merchant.

There are other affiliate marketers who promote products through the social media and other platforms.

Affiliate marketing can be done from anywhere in the world. You will be able to work directly with the company/merchant whose product or services you are promoting.

There are so may affiliate marketing opportunities. You can easily drop one affiliate for another whenever you think that things are not going the way you want.

What is MLM?

MLM or Multi-Level Marketing involves building a team to promote a product or service. It is also referred to as network marketing.

Everyone in Your MLM network will attempt to sell the same type of product. In most cases, people are recruited by others who are already in a given network.

MLM has been compared several times to a pyramid scheme.

MLM companies choose the service or product that they want to promote. They then build a network of elope who will help them promote the product or services and earn a commission.

It is difficult to make good money from Multi-Level marketing. This is mainly because you will be at the bottom when you start.

The people who make good money are those who have already recruited many people.

When you are at the bottom of the pyramid, you will be sharing a huge chunk of your commissions with those who are at the top of the pyramid.

Affiliate Marketing Vs. Multi-level marketing

When you choose affiliate marketing, you have the freedom to decide what you want to promote. In MLM, you can only sell what the company that you are involved with is selling.

Although it’s possible to join more MLM companies to have a variety of products to promote, it’s a lot more difficult to make money from MLM than in affiliate marketing.

Affiliate marketing also gives you better control over your business.

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What Is A Realistic Income To Make From Affiliate Marketing

There is plenty of misinformation out there about the amount of money that a typical affiliate marketer makes.

There are many get rich quick con-artists who will tell you that it’s possible to make millions within your first year. Although it’s possible to make millions in your first year, this is something that rarely happens.

Its extremely rare for an affiliate marketer to make millions in the first year. On the other side of the affiliate marketing debate, there are people who do not believe that it’s possible to make a significant amount of money from affiliate marketing.

This is even more misleading. Such people can instantly discourage someone who is planning to venture into affiliate marketing.

The truth of the matter is that affiliate marketing is a growing multi-billion industry. It is projected that more and more companies will embrace affiliate marketing over the next few years.

This means that there will be more partnerships between affiliate marketers and businesses in future. This is good news to anyone planning to get into affiliate marketing considering the fact that there are so many affiliate marketing opportunities already exist.

Typical income for affiliate marketing beginners

Most affiliate marketers struggle for a long time to make money. Some of them are able to make some money within the first month while there those who do not make anything at all from their affiliate marketing efforts within the first month.

This happens because people do things differently. However, any affiliate marketer who follows a good strategy should be able to make some money within the first 6 months.

The amount of money that you make in the first 6 months may not be much, but it should encourage you to continue working.

It’s also during this period that you will know the things that work and those that don’t work.

What makes people fail in affiliate marketing?

Most beginners give up after the first few month because they do not set realistic goals. You have to set realistic goals when you want to be a successful affiliate marketer.

Your income will improve significantly over time if you consistently work on your website. There are a lot of people who have been able to build affiliate marketing websites that earn a significant amount within one year.

You can also do it when you employ the right strategies. Affiliate marketing is a volatile business. If you make $1000 today, you should not expect to have $30,000 in your account at the end of the month.

The amount you earn the next day may be significantly lower or higher. You should focus on trying to repeat your success the next day if you want to have a foreseeable future.

So, What Is A Realistic Income To Make From Affiliate Marketing?

Just like all other things, the more experienced you are in affiliate marketing, the more the amount of money that you are going to earn.

You will discover along the way what works and what does not work. The more the pages that you have on your website, the higher the amount of money you are going to make from affiliate marketing.

The pages you are creating today will earn money, not just once, but several times in future. You will also be able to rank better on the search engines with more content.

Don’t forget that your affiliate marketing business will be running 24 hours a day throughout the year. There is no limit to how much money you can make.

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Best Affiliate Marketing Programs For Beginners

If you are a beginner then probably your concept about affiliate marketing is not that clear.

Affiliate marketing is one of the most effective online advertisements that helps any business to make profits by generating leads, traffic and sales for themselves.

For this you have to make sure that you are affiliating yourself with publishers (also known as affiliates) by using one of the best affiliate marketing programs.

There are many advantages of this type of marketing. It is beneficial for both the affiliates who promotes a particular product or service and also for the merchants who are selling it.

How Does This Work?

Affiliate marketing is mainly a process of earning commissions.

For this you have to promote the products or services of other companies and people If you like one product or service and want to promote it to others, then you can use this as a tool for earning some profit for yourself.

This will help the businesses to get leads, customers and eventually increase their profits. On the other hand, affiliates or the publishers get commissions for each and every products sold or services taken from their affiliation.

For this type of marketing, having a good strategy is also very important to get maximum profits.

Beneficial For Business Owners

Businessmen and merchants get a wider platform or scope to showcase and sell their services or products.

Thus it will draw more and more potential customers to your website and thus it will also increase your sales.

Business owners have a lot of work to do and if they keep on focusing on how to gain more customers then who will do the rest of the works?

Thus with the help of best affiliate marketing programs, they gain more and more customers.

This eventually brings more profit to them without spending their valuable time in search for customers.

Beneficial For Affiliates

The website publishers or affiliates can use this marketing strategy as one of their ways to earn extra profits.

It will be quite beneficial for them as well. As soon as they generate any sale through their website, the publisher receives a commission.

The business owners or merchants do not have to invest a lot of money here for this marketing. It is quite affordable even for the small business.

If you are want to work as an affiliate then you can still continue the work or business you are doing. This will act as an extra source of income for you.


With the help of affiliate marketing, you can create great brand awareness. This helps the businesses to make their products and services popular among the people.

Thus, whether it is a small business or large, many business owners use this marketing strategy as one of their most effective marketing tools.

This marketing strategy not only helps the businesses to create brand awareness and increase their profit margin but also helps the affiliates to earn a lot of money for themselves through commission.

For this using the best affiliate marketing programs are very important.

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