Why Running An Online Store Will Make You More Money

For one thing, the amount of profit that you can make dropshipping will be much higher than if you are just an affiliate. With an online store, you get to set your own prices unlike affiliate marketing, where all commissions are fixed. Whereas you typically can make a 50% gross profit on your dropshipped goods, the commission earned from being an affiliate marketer of physical goods is typically much less. But even if the profit potential were the same, running your own online store carries one major benefit that outweighs everything else, word of mouth. When you act as an affiliate, you are not a real business. You are just a referrer of business. As a result, when a customer makes a purchase using your affiliate link, you don’t get any long term benefits for the sale. Where do you think the customer will go if he wants to buy again? Do you think he’ll go through your blog or back to the website where he originally made the purchase? When he tells his friends about his new cool gadget, do you think he’ll refer his friends to your blog or to the store where he made the purchase? Whenever you make a sale as an affiliate, it’s a one off transaction. That’s pretty much the only sale you are ever going to make from that one customer. Whereas with an online store, you have the opportunity to establish a reputation and a brand to get repeat business. With an online store, whenever someone raves about your product or service, you’ll get the credit for it. Whenever someone asks for a referral, your store will be the one referred. A quality online store will naturally grow over time with a strong foundation of repeat customers and word of mouth. However as an affiliate, you will constantly have to drum up new business and referrals because there is no customer base. There is no foundation. Opening an online store takes more effort and is less “passive” but the difference is that you are building a true business, one that will naturally grow as your reputation spreads. So why not put in a little extra effort and build something that has the infinite potential to grow?