Affiliate vs. Drop-shipping

 The more I learn about Entrepreneurship, the more I understand the commitment of time....

I am thinking out loud (typing out loud just isn't the same) with this one. Let me briefly introduce the Affiliate Business model and the drop-shipping model as I understand it. 

Affiliate Business Model: Essentially, someone who is interested in promoting other people's businesses can do so and earn a small percentage of the sales generated from the referral. I looked at two national companies who both have affiliate programs: Guitar Center and REI. I could sign up to work with either of these companies pretty easily.  I could start a blog about guitars and feature great guitarist and include a link to Guitar Center, etc. 

PROS: Easy entry, little time requirement, no customer interaction, no inventory, no shipping fees, little to no risk.

CONS: Very little revenue, small growth opportunities. 

Drop shipping is a model of business where the Entrepreneur seeks out a company who produces products for sale and is willing to drop ship them. The Entrepreneur then advertises, takes orders for, and manages some degree of customer service.  Orders are placed through the Entrepreneur, to the drop-shipping company. The drop-shipping company then fills the order and sends the product straight to the customer. The Entrepreneur is billed for the shipment.

PROS: No storing, handling or shipping inventory. No product creation. Greater profit margin than the Affiliate model.

CONS: No Quality Control, Shipping costs come out of profits, Customer returns/customer relations, this business model has a history of scams, some risks

So here I sit, folding LAUNDRY, considering the options.  The affiliate model seems like it would require little time, little money, little risk. I like little things. Maybe this is a good way for me to start...but I have always wanted to SELL something....  So when I consider the drop shipping method, I see greener pastures and mucho dinero and then customer complaints and messed up shipping and me paying for my reputation and not having time to do my homework and write creative blog posts. I personally think I am going to start small, and it mostly boils down to time. Most of my time I have given to other things, so I only really have a little left to play with. I love people, so I wouldn't mind customer service, but maybe that happens in a year or two when I am done with school and the last little chick has left the nest. When I have full time to concentrate on running a business and less laundry to do.....

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