Affiliate Income vs Drop Shipping

[micmol]

I've been doing quite alot of research lately trying to determine the best way to increase the income levels from my site.

Now this question keeps on coming into my head.

What would make more money for my site long-term ... starting affiliate marketing relationships or developing long-term drop shipping arrangements.

My focus is not short-term is definitely long-term.

Looking at the downside to affiliate marketing ...

Researching many, many potential affiliate links I would never buy the product so why should I expect my traffic to buy the products. Many sites have as much chance of closing the sale as I would of becoming the next president of the USA.

The whole process of you delivering your quality traffic to a third party is alien to me. As somebody who hs had over 20 years in sales & retail, taking customers threw the whole buying process has been very successful for me. Why should I consider changing online?

With affiliate marketing even although many sites "claim they have used and fully endorse the product." I don't believe them they are just making the statement to generate income ... simple self-interest theory.

Where as if you look at drop shipping. Assuming you choose the products wisely. The trust you have built with your traffic can be transfered easily into the buying process.

Would be very interested in your thoughts?

[Lynn Terry]

[giftsolution]

I will add my comments to Lynn's as one who did both (actually, I still use both methods, but not for long).

When you drop ship, as Lynn suggested, you are tied to your computer/home office. You need to take the order, process the credit card (watch out for credit card fraud: one of the reasons I've been slowly changing my business model), then place the order wiht your supplier, and also keep in touch with both, your customer, and the supplier.

If anything goes wrong with then order, you are responsible. For example, if you procesed the credit card and even though it went through, it was a fraud, you are out the money.

Also, if you want to go on vacation, you need to make sure you have someone cover your operation.

You'll also have to maintain a merchant account, and most charge a monthly fee, even if you don't have orders going through.

On the positive side, your profit is higher: 40-50% of the retail, as opposed to affiliate commission of 5-20% (for actual goods).

As for affiliate marketing, if you pick your partners carefully, and then learn SEO and use that knowledge when building your pages, you can have free traffic for a long time, a much better strategy.

I hope this will help you make your decision.