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Posted: Thu Mar 11, 2004 2:02 am
Post subject: Better to start an ordinary business than just become an aff
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| Wouldn't it be better to start a regular business online store such as tigerdirect instead of becoming an affliate and getting paid percentage commissions? |
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thepoolroom
Joined: 11 Dec 2003
Posts: 89
Location: Australia
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Posted: Thu Mar 11, 2004 3:07 am
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Why do you think it would be better to be a retailer? I'm asking that seriously, but meanwhile I'll tell you why I'd rather be an affiliate:
The benefit of an affiliate is that you just need to point people to retail sites. Write a few articles, post a few links, etc - all you have to worry about is getting traffic and converting that traffic.
You don't need to find and deal with suppliers, maintain inventory, process orders, accept credit cards, handle packing/shipping/customs/insurance/etc, work out pricing/promotions/advertising, handle returns/breakages/warranties, keep an eye out for new products, answer questions, provide tech support, deal with employees, deal with the public, etc.
An affiliate doesn't even have to be present - your site will keep earning money while you're sick, on holidays, or just doing something else. A retailer needs to be available most days (if not every day) to handle queries and process orders.
It really comes down to personal preference - the things above are important to me, but that doesn't mean they should be important to anyone else. There are obviously people out there who prefer to run regular online stores than be affiliates. We need both types of people! _________________ http://www.OneStopUnder.com - serious reading for serious photographers. |
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Jscott
Joined: 14 Oct 2003
Posts: 152
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Posted: Thu Mar 11, 2004 3:32 am
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| Your question is wrong. |
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Debbi
Joined: 20 Nov 2003
Posts: 259
Location: USA
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Posted: Thu Mar 11, 2004 5:59 am
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| Jscott wrote: | | Your question is wrong. |
What do you mean his question is wrong? Care to clarify?
Or do you prefer to remain obscure and disengaged? _________________ RIGHT is still RIGHT, even if no-one else is doing it....
WRONG is still WRONG, even if everyone else is doing it.... |
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Johnny G
Joined: 19 Oct 2003
Posts: 187
Location: Uk
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Posted: Thu Mar 11, 2004 11:04 am
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Theres nothing wrong with his question??
How can a question be wrong?
Regards
Johnny G _________________ The world meets nobody half way. If you want it, you got to take it. |
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Frank Nordberg
Joined: 15 Aug 2003
Posts: 114
Location: Norway
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Posted: Thu Mar 11, 2004 11:44 am
Post subject: Re: Better to start an ordinary business than just become an
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| ... wrote: | | Wouldn't it be better to start a regular business online store such as tigerdirect instead of becoming an affliate and getting paid percentage commissions? |
Running an online store:
- High risk
- Relatively high investment
+ High income potential
Being an affiliate:
+ No risk
+ Not much investment
- Lower income potential
I'm just glad that different people have different answer to the question, cause one wouldn't survive without the other  _________________ Frank Nordberg
http://www.musicaviva.com
The internet center for free sheet music |
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Debs
Joined: 16 Aug 2003
Posts: 4296
Location: NY
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Posted: Thu Mar 11, 2004 2:25 pm
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I take exception to the lower income potential on affiliate sites you mention, Frank. James Martell makes over 30 grand US a month in affiliate programs alone, Roselind Gardner made almost 1/2 million in one year from affiliate programs alone. Granted, these are not your everyday affiliates, but then, most online stores, particularly mom and pop style, don't do this well either.
Debs _________________ Learn how to turn keyphrases into quality, well-targeted articles your visitors and SE's will love with Gary Antosh's new ebook "Web Content Made Easy!" |
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onlineleben
Joined: 01 Aug 2003
Posts: 208
Location: Germany and the World
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Posted: Thu Mar 11, 2004 3:00 pm
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| Debs wrote: | | Granted, these are not your everyday affiliates, but then, most online stores, particularly mom and pop style, don't do this well either. |
Talking Mom & Pop onlinestores I often found them as an extension of their brick and mortar shops an then probably most of their energy goes into the real world shop.
My conclusion: own product, that is not digital -> lots of work
other peoples stuff (affiliate) -> more free time _________________ Explore The Most Up to Date Site About How to Succeed with Adwords! |
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Larry Chamberlain
Joined: 01 Aug 2003
Posts: 1184
Location: London, England
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Posted: Thu Mar 11, 2004 7:51 pm
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Hi ...
| Quote: | | Wouldn't it be better to start a regular business online store such as tigerdirect instead of becoming an affliate and getting paid percentage commissions? |
Forgive me if I'm wrong here, but wouldn't starting a business " such as tigerdirect" be just a little outside of the financial means of perhaps 99.9999% of most folks?
As I see it, your example demonstrates beautifully the advantages of being an affiliate. Staying with Tigerdirect, you can offer every single one of their products and not have to carry any of them. No worries with S and H. No staff. No business rates.
Same goes with any business that offers an affiliate program, no matter how large or small.
If you are saying is it not better to sell your own product rather than someone else's. Yep, no contest. But...
...first you got to develop that product, and make pretty damn sure that it has a good USP.
All the best,
Larry Chamberlain. _________________ Why Do Most Affiliates Make Less Than $500 Per Month?
Is SBI! eLearning Right For You? |
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AllanGardyne
Site Admin
Joined: 02 Jul 2003
Posts: 6326
Location: by the beach, Australia
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Posted: Thu Mar 11, 2004 10:57 pm
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Another advantage of being an affiliate, important to me, is that you do it from almost anywhere. You can follow the climate, if that's what you wish. _________________ Allan Gardyne
AssociatePrograms.com - You're here. Explore it! |
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DatabaseDesigner
Joined: 17 Nov 2003
Posts: 665
Location: Norway
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Jscott
Joined: 14 Oct 2003
Posts: 152
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Posted: Thu Mar 11, 2004 11:42 pm
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Debi-
It is not that I am trying to be obscure and disengaged. It has to do with the use of my time and how to create thinking.
I would prefer someone really dig into their own problem as to me handing a solution (one that might not be right for them in the first place). There are many people on here that will add great ideas and solutions that are workable.
I am not geared that way. It is not my strength. I tend to stir the pot and create thinking. Sometimes that is positive sometimes not.
Since you see me as disengaged, I can guess your thoughts.
| Quote: | | How can a question be wrong? |
Anytime it leads to a wrong answer. I am not dealing with morality here.
Now, I can expound if I must:
Asking a better than question presupposes to much information. There is not enough information to answer the question.
Are mini-site better than content sites? Is the net better than owning a dry cleaner? Is going into sales better than going into customer service?
Better is than is not the question that needs to be asked. It is the wrong question for the individual poster.
A better question would be:
With my personality and talent set would "insert comparison here."
I have seen people do the undoable because they had the passion and talent set that matched the impossible situation head on.
I have seen others fail at an easy buck. Why? Cause it depends.
It is the individual that is the main determining factor. Not the industry or business.
Now that I am fully engaged I will end the post  |
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brad
Joined: 04 Dec 2003
Posts: 14
Location: Canada
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Posted: Fri Mar 12, 2004 2:06 am
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| Debs wrote: | | I take exception to the lower income potential on affiliate sites you mention, Frank. |
I have to agree with Frank on this, if you had the capital, were willing to take the risk, and wanted to put in the time you could probably do much better starting a Tigerdirect, in terms of income ... personally I'd much prefer to earn 1/2 a million a year like Rosalind Gardner, choose when I work, and not have all the added risk, but that's me - and I have run an online electronics store like Tigerdirect (much smaller - $1 million initial investment), it's not easy.
Brad |
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Debs
Joined: 16 Aug 2003
Posts: 4296
Location: NY
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Posted: Fri Mar 12, 2004 4:13 am
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That's what I am saying Brad, why invest a million for a 20% net return at the end of the year? I can get much more, with much less investment and a heck of a lot less time.
Been there done that too. I had a giftstore and wholesale outlet online for 3 years and decided 20 hours a day, 7 days a week wasn't cutting it.
Debs _________________ Learn how to turn keyphrases into quality, well-targeted articles your visitors and SE's will love with Gary Antosh's new ebook "Web Content Made Easy!" |
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Jscott
Joined: 14 Oct 2003
Posts: 152
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Posted: Fri Mar 12, 2004 4:14 am
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I would not own a tiger direct unless I knew how to cashflow it.
I can run 175 affiliate sites without effort. In fact, put em up and forget em.
Tigerdirect demands customer interaction and employee interaction.
Anyone who moans has never dealt with the above. |
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