The entrepreneurs of today understand that having an online business is the best possible way to get started. Since a typical business with a storefront, employees, many expenses and more is out of reach for most people, starting a business online is a viable solution.
We even see young people in their early teens starting an online business. This would never have been possible without the Internet. There are two business models that we will discuss today. These are the most common that people are delving into today. These models are the affiliate marketing model and e-commerce or also known as drop shipping.
With affiliate marketing, you simply need to create a website or possibly even a youtube channel where you would promote other peoples products. There are many businesses out there that use the affiliate marketing model to boost their sales. This is like hiring a team of salespeople that are strictly on commission. There is no cost to the company and it is a win win model because both parties will benefit.
The affiliate marketer will leverage his or her website’s traffic to promote the product from the vendor. The vendor will supply the affiliate marketer with a unique URL that will identify that particular person. When a sale is made from the link, the affiliate marketer is identified to the vendor and the commission is then generated. Payouts normally range from two weeks to a month from the time of sale. The reason for the delay is because a lot of vendors will have some sort of guarantee which could be up to 30 days on average. If a purchaser refunds the product than no commission is paid out. This is the reason for the delay in most affiliate marketers understand this.
Commissions range anywhere from 5% which is what you would see from selling a product on Amazon and all the way up to 50% or more which is usually focused on digital products. Since digital products have no shipping costs, this is why the commission rates are much higher.
To get into affiliate marketing tool need to understand how to market products, where to market them, and the strategies used. It would be a good idea to purchase a course on affiliate marketing. Read reviews on the many different affiliate Marketing course offered to make sure that you are purchasing a reputable one.
Here is an example of an affiliate marketing site that provides reviews for insurance.
The e-commerce model is slightly different. For e-commerce, we will focus on dropshipping. Drop shipping is where you advertise products available from the manufacturer without physically holding them in storage. If someone purchases a product from your website you would then fulfill the order by purchasing from the manufacturer and having the manufacturer deliver the product to directly to the customer. You are basically the middleman in the purchase.
The drop shipping model deals strictly with physical goods. One very common place where products can be bought for the purposes of dropshipping is https://www.aliexpress.com/. Products can be bought here for as little as $1.00 and marked up to $20.00 or more. These all come from China so products can be bought very cheaply and sold for a higher price to the consumer.
Drop shipping is very hot right now with marketers. A lot of money can be made with this model. This has already shown due to many retailers going out of business.
Here is a very common drop shipping store that focuses on jewlelry. All these products have been sourced from Aliexpress.
Ecom & Affiliate Course Reviews
To get into e-commerce or affiliate marketing, you’ll need to do your research and fully understand each business model. Although there is plenty of free information all over the web, your best chance of success is to purchase a course online. E-commerce and affiliate marketing course reviews can be found on many review websites that cater to helping online entrepreneurs. Getting the right information will help you fasttrack to success.