Would you like to expand your web project to include the sale of external products and have come across the possibilities of dropshipping and affiliate marketing? If you have not yet been able to explain what it is about and what differences and similarities lie, then the following article can help you.
What is dropshipping?
The Dropshipping Business, is characterized by the fact that the supplier buys goods from a supplier, but never comes into physical contact with them. Instead, he only offers the product on his platform and decides on pricing and all relevant marketing measures. When a sales contract is concluded, however, the supplier does not send the goods, but informs the supplier who takes on this step.
Example:
Let’s say you’re promoting t-shirts on your website. You would practice dropshipping if customers can order the T-shirts from you, but you never come into contact with the goods yourself. Instead, you have a contract with your supplier to independently send the T-shirts to your customers.
What is Affiliate Marketing?
At the Affiliate marketing A distinction is made between commercial providers and sales partners, the affiliate. The affiliate advertises the commercial provider’s products on its platform. This can be done, for example, in the form of keyword advertising or by sending emails with advertising content. In return, the affiliate receives a share of the profit on a commission basis.
Example:
Let’s take our T-shirt as an example again. If you use affiliate marketing, you are promoting the product, but you are only indirectly involved in the sale. On your website, in newsletters or similar, you mark a corresponding link that directs the customer to a commercial provider, such as Amazon. Only there the customer can purchase the T-shirt. In return, you will be paid a commission from the sale of the T-shirt.
Similarities between dropshipping and affiliate marketing
Even if it sounds like dropshipping and affiliate marketing are very different, in some areas they are analogous to each other.
– Both affiliate marketing and dropshipping are inexpensive to implement
– Both options are also characterized by their ability to be implemented quickly
– However, they also require the necessary know-how in the field of marketing, such as creating ads
– For both types of business, however, you do not have to worry about storage or shipping of goods
– As a result, both options offer you a much smaller risk potential
– Nevertheless, profit can be generated well with dropshipping and affiliate marketing
Differences between dropshipping and affiliate marketing
Dropshipping and affiliate marketing differ particularly in the following areas:
| Affiliate marketing | Dropshipping | |
| Build your own business | requires an understanding of the effect of ads on the sales figures of the commercial provider with defined target groups | requires an understanding of the effect of ads and other marketing instruments for the sale of specially offered products as well as the constant optimization of measures and relevant target groups |
| Main task | Generation of traffic and content rich in content, as well as the forwarding of potential customers to the commercial provider | Development of your own brand, generation of traffic and content rich in content for your own website |
| Pricing of the product | no influence as the commercial provider sets the price | can be freely determined by the provider |
| Customer service | is made available to customers by the commercial provider | must be provided by the provider himself |
| costs | commercial provider bears all advertising costs incurred, affiliate only bears costs for operating their own website | Marketing and other advertising costs and the operation of your own website are borne by the provider |
| Profit | only commission instead of the full sales price and only if the customer is redirected to the product via the link | Profit is based on the amount of products sold and 100% goes to the provider |
Your affiliate or dropshipping web project with Projektify
Do you find the possibility of dropshipping and affiliate marketing as a way of making money exciting and do you want to become the owner of such a web project yourself? Projektify always has suitable purchase offers in its program. Take a look at ours Show around. You can use our platform completely free of charge.
If you also want to talk to an expert personally on this topic and ask him a few important questions, then you will find ours here “Get rich on the Internet” service .
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