While there are many ways to make money on the internet, the main ones seem to be pay per click, affiliate and direct sales. Affiliate income and direct sales are probably the two more popular, but which route should you choose? What are the pros and cons?
While there is much to consider, you may like to think about the following before making any decision :-
Affiliate Sales
Pros
- There is no packaging and posting for you to carry out.
- You will not be called upon to sort out any after sales problems.
- There are literally thousands of different programs available.
- A big brand affiliate program can sometimes “sell itself”.
Cons
- You only receive a commission, rather than the full profit per item.
- You will likely only receive commission for a set period per customer. There is a great possibility of missing out on any repeat sales commission.
- Sometimes difficult to track the sales you have referred to the affiliate program. The major affiliate sites are very reliable, although others are some what less reliable.
Direct Sales
Pros
- You will receive the full profit per item, rather than paying a commission to a third party.
- You have full control of what is sold, new product launches, price, etc.
- Repeat orders are very much a part of this income stream.
Cons
- It can be hard work, and potentially expensive packaging and posting items.
- There are lots of costs including storage, insurance, etc.
- It can be expensive to advertise and promote your business / products.
All in all it really does depend what you are looking for, what kind of business you have and how much control you want to keep on sales. There are pros and cons to each of affiliate sales and direct sales, and you will need to balance all of these against what you want and what you have time to do.