Drop Servicing vs Affiliate Marketing

The make money online world is huge, with so many different methods, side hustles and ways to get started. Some of course, are better than others. Either because they are easier to master, don't require as much capital to grow, or simply because they don't require ton of different tools or huge audiences to begin with. 

Today we are going to explore two methods that are usually pitted against each other, due to the somewhat similar nature. We will look into Drop Servicing vs Affiliate Marketing.

If you are interested in different hustles that you can do online, then you can also check out Drop Surfing vs Dropshipping & DropShipping vs DropServicing. Or, simply read our How To Get Started With Affiliate Marketing For Free guide!

What Is Drop Servicing

Despite being a relatively new entrant to the business world, drop servicing and affiliate marketing are making waves in the industry. Essentially, drop servicing is a type of drop shipping, but with a few less risks associated with it. In this business model, a company buys a service for a low price and resells it for a higher price.

There are several advantages to this business model. It can be very profitable, it's relatively easy to implement and it's cheap to get started. 

In order to get started, you'll need to invest in a website and some marketing skills. You'll also need a domain name and a hosting provider. You can also hire freelancers to help you out. You should do your research and make sure they have a good reputation.

Depending on the services you offer, yo how long it will take to complete a project. You may need to charge more in order to make the business profitable.

Another thing to consider is the best way to advertise your drop servicing business. Social media marketing is a good way to start. You can also offer other services to your customers. In addition, you may want to look into SEO. 

What Is Good About Drop Servicing

Whether you are looking to start your own drop servicing business or start an affiliate marketing business, there are a few things to consider. Both business models have their own pros and cons. It's important to research and understand both business models to find out which one is right for you.

One of the biggest reasons people get into Drop Servicing, is that you can get started with essentially a zero. You really only need around $100 to get yourself a domain, website and some basic copy/sales copy on your site to get people to buy those services. 

Taking it one step further, you can skip all of that and simply go straight to marketplaces such as PeoplePerHour or Fiverr, thus removing the need for that website entirely. 

Drop Servicing vs Affiliate Marketing 2 drop servicing vs affiliate marketing

Secondly, due to the nature of the beast, you don't need the money upfront to get started (though, you need some, more on that below). For the most part, you will be paid X amount, which can be put towards you paying the service to carry out the work. Thus a lower barrier to entry. 

You can also jump around difference services and niches, you don't have to stick to one. For example you may resell SEO services, website creation services or maybe even adword campaigns for companies, without needing to have prior knowledge or experience. 

What Is Bad About Drop Servicing

Of course, not everything is sun shine and rainbows, and Drop Servicing suffers from the same issues that Drop Shipping falls foul of. 

You will need some capital. Most payment providers don't pay out straight away, which means you may get an order for $500 worth of services, that requires you place an order of $250. If you don't have that $250, your customer is going to be waiting quite a while, and they are not going to really know what is happening or why it's taking so long

As you will be working with different people, you don't have direct control over the quality. You may be able to source a few decent services, but if they suddenly stop offering their services, or become busy you will be forced to find new people. This could have a knock on effect of the quality of your own offerings, especially if they turn out to be crap. 

On the back of that, you also can't build on consistency. If you have 5 or 6 different places to buy your stores from, or SEO services, and each one is a little different, you can end up with the same customers getting a different level of quality each time.  

Again, as with DropShipping you are going to need to advertise, or get your services out to the wider public. This can happen a variety of ways, most people rely on adverts or paid traffic, which means you are going to have to learn that skill, or buy it. Other options include using those marketplaces, but require you to boost your listings, or start getting some rave reviews, both of which can be difficult. 

What Is Affiliate Marketing

Essentially, affiliate marketing is an agreement where you earn a commission for promoting a service or product. You earn this commission when a customer clicks on your link, buys the product, or signs up for a service.

Lots of companies do it, with sites such as Amazon, Wallmart and even AliExpress having affiliate programs, making it a hugely popular way to make money online. 

To be successful with affiliate marketing, you need to identify a product or service that's in demand in the market and promote it effectively. You can create blog posts, YouTube tutorials, and webinars to promote a product or service.

One of the best ways to promote a product is through social media sites such as Instagram, Facebook, and Twitter. These sites have a large audience and you can easily persuade your followers to make a purchase.

It's important to select an industry that you're passionate about. You should also create top-notch content and promote products that you're excited about. This will help build a lasting relationship with your audience.

What Is Good About Affiliate Marketing

Affiliate Marketing is quite similar to Drop Servicing when it comes to costs associated to starting, in reality you could start with under $100. Especially if you went down the route of free traffic methods

Technically, all you need is a website, or even just a link if you utilise other peoples platforms and content. 

If you are vocal, and you don't mind showing your face or being a bit more 'seen' then you can also build your own brand. With your own brand, you will be able to start building a following of people who enjoy your content and offers. Programs such as SAA focus on that brand building, and explain how to understand the sales and psychology of offers, which can help with that 'passive' style of income that can happen. 

Other positive sides to affiliate marketing include the fact you can step away from the business for a few days, weeks or even months and still generate commissions. This works by having content out and about, on platforms such as YouTube, Social Media or even your own blog. 

There are near countless niches, or ideas that you can monetise or use with affiliate marketing. A great way to see the sheer size of the marketing is to look at physical marketplaces like Amazon and see just how many categories and products they have on offer. Each of those can be turned into content and eventually money. 

It's also has no fixed ceiling to earnings. With so many different niches, if you start to exhaust one (though that's difficult) you can move onto the next one, using the same techniques and ideas as before. 

Profit margins can also be really high on affiliate marketing products and services, with certain niches and offers providing 50 - 300%+ commissions. Yes, some offers will actually pay you more than the sale price of the front end of an offer, usually because they will have multiple backend offers that more than cover that pay-out to you!

What Is Bad About Affiliate Marketing

Choosing the right niche can be a challenge. It's not always easy to come up with a website that can drive traffic. You may have to spend more on ad budgets and marketing costs than the commission you're likely to get. You may even spend time finding groups and potential prospects on social media, but never quite being able to close those sales. 

You have no control over the product quality, but you can be held accountable. If you promote or talk about scams, or products that don't work, this can blow back on you through your emails, social media platforms or below videos and content. This is one of the reasons you should try and access, review and talk about products you have personally seen or used.

Certain strategies can take time to master and even longer to start seeing results. Blogging can take months to really start seeing any kind of return, traffic or commissions, and you can spend weeks or months talking to people on social media and never making a dime. 

Drop Servicing Vs Affiliate Marketing - Which One Wins?

Personally, I will always go for affiliate marketing. There is less complication involved, with zero requirements to spend cash or do any kind of customer service etc. 

It also gives you so much more freedom when it comes to choosing niches, traffic sources and methods to scale or grow. Plus, there is so much solid training out there to learn affiliate marketing, in every style... you would be crazy not to get into it.