hello once again guys welcome back to
the channel hope you're having a great
day so far so what we're gonna be
talking about in this video today is the
best possible online business to start
and I know that there's a lot of
different options out there in terms of
starting your own online business we
talked about a lot of different ideas
here on this channel but there are three
core areas or businesses that I think
are talked about the most and so what I
wanted to do in this video is do a
comparison of these three businesses
because if you're anything like me you
guys are getting bombarded on YouTube
and Facebook with ads surrounding
Shopify Amazon FBA or affiliate
marketing and it's probably something
like trying to take a sip from a
firehose
different businesses because you have so
much information coming at you at once
now I'm just going to be transparent
with you guys I am an affiliate marketer
and so naturally I'm going to be biased
towards affiliate marketing here but I'm
going to try to do my best to give you
guys an honest overview of these three
different businesses to maybe help you
better understand you know which one
might be a good fit for you but if you
are actually looking to start one of
these businesses I would highly
recommend following some other youtubers
who do Shopify or Amazon FBA and
learning from them as well because of my
obvious bias here towards affiliate
marketing and in particular I've never
really talked to anybody who does
Shopify one of my close friends Jordan
the millionaire millennial I've done
some videos with him he's quite
successful with Amazon FBA and I'll link
up the interview series I did with him
in the description below he's a great
person to learn from if you're looking
to explore this idea and learn more
about Amazon FBA but that being said
let's break it down let's look at these
three different business models and talk
about the differences between them so
first of all the age of these different
businesses how long have people been
doing Shopify in Amazon mostly in the
last five to ten years now Amazon and
Shopify have both been around for 15 to
20 years but only in the recent years
has it really become a viable business
to essentially you know have your own
Shopify dropshipping store or do you
know Amazon FBA
and if you guys aren't familiar with
these businesses at all
essentially what you're doing with
Shopify is doing drop shipping so you're
buying a product from overseas typically
from Alibaba or Aliexpress and then
you're bringing it over here to the US
maybe you're repackaging it and then
you're selling it for a higher price
over here and you're essentially just
the middleman making that profit now the
difference between Shopify and FBA is
primarily the fact that Amazon is going
to be fulfilling that order so you order
stuff from again Alibaba in most cases
you ship it over here to the US and it
goes to an Amazon warehouse for
fulfillment assuming you don't have any
packaging going on in between and then
when somebody orders your product off of
Amazon while Amazon is going to fulfill
that entire order and then third of all
on our list here you know we have
affiliate marketing which is a business
model that's been around for 25 plus
years since before the internet was even
around a lot of people don't realize how
old affiliate marketing is but it's
essentially just getting paid for
referrals so just to give you guys a
really simple example here let's say
you're a realtor and you have all these
friends who are you know painters and
they do woodwork and they do all these
different things now I don't know if
this is allowed in terms of referrals
well let's say for example somebody who
buys a home says hey I'm looking for a
painter do you know anybody let's say
you passed them that business card and
then you tell that guy hey I referred
you this customer and you earn a
commission in the process now I have no
idea about the legality of being a real
estate agent or if you can earn
kickbacks so that's not the point of
that example I just want to show you how
you know versatile affiliate marketing
can be and how it's been around for
decades beyond that let's talk about the
biggest thing that I think people need
to understand about these businesses and
that is the profit margin a lot of the
times you're gonna see people on you
know YouTube or Facebook advertising
these stores that are doing twenty
thirty forty thousand dollars a month in
revenue but what they're not telling you
is what is their profit margin on those
sales because typically what you're
gonna find with Shopify and Amazon FBA
is your profit margin is around thirty
to forty percent so if you had a Shopify
store doing ten thousand in revenue
you would expect your profit to be you
know three thousand to four thousand
dollars that is where affiliate
marketing is completely different
because if you're doing it right
affiliate marketing should be a 90 plus
percent profit margin business because
there's literally no expenses associated
with this business there's no inventory
there's no ads if you don't want to have
them and so it's a super lean business
model where you could easily see a 90
plus percent profit margin with it
moving on cost to get started you know
what are the operating costs to get up
and running I'm sure there's people out
there telling you you can do Shopify and
Amazon with $100 but I honestly don't
think that is quite right because there
are going to be some costs associated
with any business you start but I found
some resources online that kind of
helped us understand this it says to
start a Shopify store it's going to cost
you around $500 to $3,000 and to start
up with Amazon FBA that's more like
2,500 to 4,000 dollars now the big
difference between these two businesses
and affiliate marketing is that you can
absolutely start affiliate marketing for
free because you don't need to buy
anything it could be as simple as
starting up a YouTube channel where
you're gonna do product reviews or
you're going to open up a WordPress
website and in order to get that up and
running a self-hosted WordPress website
is not going to cost you a lot of money
at most maybe a hundred dollars for a
year of web hosting and a domain so
we're not talking about a large upfront
investment moving on let's talk about
order fulfillment do you have to fulfill
orders with Shopify yes you do do you
fulfill orders with Amazon FBA
absolutely now that's something that a
lot of people will outsource but it is
still a part of this business there's
absolutely no order fulfillment with
affiliate marketing because the person
who you refer that sale to is going to
fulfill that order customer service
there is going to be some element of
customer service involved with Shopify
if somebody is unhappy with the product
and they want a return there's going to
be customer service involved with an
Amazon FBA business above and beyond
their contact with Amazon there is no
customer service with affiliate
marketing because you're not directly
dealing with the customer
you are passing that lead on to that
business or service or whatever you're
affiliated with and they're going to
maintain that customer relationship if
they have a problem they're gonna call
whoever you referred them to they're not
going to be calling you you are not a
part of that process moving on inventory
yes you have inventory with Shopify and
if you're doing it right and dropship
incorrectly you're ordering your stuff
from overseas bringing it to the US and
then you're shipping it here otherwise
it's gonna be 30 or 40 day shipping in
some cases which people are not going to
be happy with Amazon FBA it's a little
bit better because the Amazon warehouses
are fulfilling those orders for you but
you do have to keep track of inventory
levels and order new products and have
them ship to that warehouse there is no
inventory with affiliate marketing and
there may be inventory but you're not
dealing with that side of the business
you're passing the lead and then whoever
sells that product or service it was
obviously no inventory with a service
but whoever sells that product is going
to fulfill that order so let's say for
example you are affiliated with Bose
headphones and you earn a commission for
passing those leads let's say you earn
you know a five dollar commission by
referring somebody over to purchase a
pair of Bose headphones
well Bose is going to be the one who
talks to that customer they're gonna be
the one who fulfills that order ships
the product handles customer service
they're keeping track of inventory all
you did is pass over that sale and earn
the commission in the process moving on
do you need to run ads what you're going
to find is with Shopify a lot of it is
based on running ads interest-based ads
on facebook whether it's the wolf mug or
whatever you want to talk about here
you've seen in the ads it's trying to
find a niche product that you can sell
and running ads to people on Facebook
Amazon FBA in the beginning you're
probably going to need ads to get your
product up and running and get that
sales velocity so you will have to in
most cases figure out how to run you
know either Facebook or Google Ads
affiliate marketing you can run ads if
you want to but you can also just rely
on organic search traffic if you're not
interested in running ads moving on what
is the biggest Pro of each of these
businesses and then the biggest con well
the biggest Pro of the shop
five store in my opinion and this could
also carry over to Amazon is that it's
completely behind the scenes if you
don't want to be in front of a camera
nobody knows who owns these Shopify
stores or Amazon FBA stores the biggest
Pro of doing Amazon FBA as you're able
to capitalize and piggyback off of the
number one ecommerce platform out there
and as Amazon grows the sales on Amazon
grow and these independent sellers are
making more and more money in the
process and if you look at the projected
growth of e-commerce over the next few
years it is a good trend to be a part of
and then the biggest Pro with affiliate
marketing in my opinion is that it can
be around something you're passionate
about I make the majority of my
affiliate commissions from brokerage
accounts and investing platforms and
that's something I'm super passionate
about which is finance and investing so
I've taken a passion of mine figured out
how to build a business around it and
I'm able to do something I enjoy and
write articles and make videos about
things that I really love is anybody
super passionate about e-commerce or
Shopify they may or they may not be but
if you are looking to do something
that's passion oriented
I think affiliate marketing is the best
option for you now the biggest con of
each of these three businesses number
one since a lot of Shopify sellers are
simply running these interest-based ads
on Facebook it does become a bit of a
race to zero in terms of your profit
margin because let's say for example
you're selling that wolf mug and you
found a perfect niche in your running
ads to these people it's only a matter
of time until another Shopify seller
builds a similar store selling wolf mugs
to that same target audience now you're
competing against each other in terms of
the same customers or potential audience
meaning that your ad prices are going to
climb up higher and your margins are
going to get slimmer the biggest con
with Amazon FBA is that there is a
product lifecycle involved with anything
you're selling now that may be a two
year lifecycle it could be a five year
lifecycle or more but in most cases you
know the product you're selling today on
Amazon is not going to be the same one
you're selling two or three years down
the road so you constantly have to be
looking for new products or have
somebody on your team doing that for you
and then by far the biggest
of affiliate marketing is it takes a
very long time I can tell you that most
people if they're doing the blogging
approach building up a blog they're not
going to make any money for the first in
some cases 12 to 18 months because
that's how long it takes to build up
Authority and get substantial traffic to
your blog I know people who have done
Amazon and Shopify that have gone to you
know 0 to $10,000 in the course of six
months so it is quicker in most cases to
get up and running with Shopify or
Amazon FBA but it all has to make sense
for you and it has to ultimately be a
business that you're interested in
running the issue is if you build a
business that you don't like you're
essentially just gonna build a job for
yourself and eventually you're gonna
want to get out from under that and so I
always encourage people to build
something that they actually like from
the beginning it's going to be a much
easier process anyways guys that's gonna
wrap up this video I hope you enjoyed it
let me know in the comment section down
below which of these three business
models are most appealing to you and if
you are interested in learning about my
business model which is affiliate
marketing it's primarily based around
building an audience and monetizing with
affiliate marketing and so I have a free
five step blueprint I'm gonna link up in
the top link in the description below
which goes through the five steps you
follow to build a following or build
your tribe online and then eventually
that is when you can use affiliate
marketing to make money from that
audience so that ebook is the top link
in the description below completely free
I'll be sending that to you over
Facebook Messenger but thank you guys so
much for watching this video I hope you
enjoyed it and I will see you in the
next one
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