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High Ticket Drop Shipping vs Affiliate Marketing in 2019

 

WHAT IS AFFILIATE MARKETING

Affiliate marketing is a great model to start with if you are just getting started with an online business. However, there are things you need to consider before starting. 

Affiliate marketing is when you create a content upfront. You provide value in the form of reviewing products or doing a tutorial. All you have to do is to tell the person to sign up through your link to get the. It could be a one-time or a recurring commission. It is a very good business model if you like to create content, videos, blog post, and podcasts. It is passive and you get paid by commission and the vendor has to do the customer service. 

 

THE DRAWBACKS

You only get paid by the commission after 30-60 days. It can be an issue if you just started and you want to make money fast. It would take you probably 6 months to start making a profit. The reasons why it will take because you have to build your foundation first, your backlinks, the social media network, sales funnels, email autoresponder. It may take time to get started but it is worth it. 

 

WHAT IS HIGH TICKET DROPSHIPPING

High ticket drop shipping is linking with vendors as well, they are usually suppliers of expensive products. These are manufacturers usually based in the US. They will give you a dealer account for free as long as you already have a website that is ready to sell products for them. You must also have a good track record of customer service. They are looking for people that have good business ethics. Someone who can take care of their customers too.

You have to pay the supplier for the product before you get the cash dropped into your checking account. You are going to need a high limit credit card for this. I suggest working with a credit card that has a bonus or cashback. The cashback can raise your profit margin. For example, if you get a $5,000 sale, you send a purchase order to your supplier, they get it ready to charge your credit card, and within 3-5 business days, you get the cash dropped in your checking account and you just have to pay off the difference of the cost of the product on your credit card.

For a $5,000 steam shower, the cash gets dropped to your account, minus the merchant fee of around 3%. The cost of the product is around 20% less than you sold it out. That 20% off of $5,000 is $1,000 you get to keep that. The profit stays in your account. You can use the profit to grow your business more or pay yourself. 

You do the customer service, and the sales, so you will be answering the phone and doing emails and live chat to sell the product. After the product is sold, you do the shipping, the bill of lading using a Shopify app. 

 

THE RECOMMENDATION

I recommend doing both. Affiliate marketing is good for passion niches. Anything that you are skilled at and you don’t mind teaching, that is a good niche. It is a different form of high ticket dropshipping. You have to focus on profit. It does not matter what you know or passionate about. It matters what is selling out there in the marketplace right now. No matter what it is, you can learn how it works and you can learn how to sell it and you become passionate about it.

The great about $5,000 high ticket dropshipping is it has a similar profit margin with $50 product. Instead of making $10 per sale, you will make a thousand dollars per sale. It pays more per sale to help you pay your ads. You can scale a lot faster. It is a great business model to have.

The other reason that it is so good because it is evergreen. These products are made year after year after year. You are selling and promoting and marketing the same products to new and return customers. You can start with high ticket drop shipping and then go to affiliate marketing slowly. 

 

AS YOU SCALE

Things will change and evolve so you have got to check my other videos about building your own sales funnels, conversion optimization and scaling your high ticket drop shipping business. If you are interested in getting started, you can get my free course. Click the link to get the free course: www.ecommerceparadise.com/freecourse.


Trevor Fenner

Founder of eCommerce Paradise. High-Ticket Drop Shipping eCommerce Entrepreneur, Podcaster, Digital Nomad, Skateboarder, Photographer, Tattoo Enthusiast, and Cat Guy. Currently based in Bali, Indonesia.




AFFILIATE DISCLOSURE: Some of the links on this page are affiliate referral links. I will get a commission from the vendor when you make a purchase after clicking them at no added cost to you. As a result, many of them also provide you with a special discount just for using my link. You can go directly to their support if you have any issues with their software or product.



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