There are 2 main types for your business. One is eCommerce and the other is Affiliate Marketing! I have experiences in both. I did eCommerce for 6-7 months. Now I focus on the affiliate marketing side, because eCommerce has more expenses than Affiliate Marketing. I will be doing both soon!
- Platform expenses – I used Shopify(very high quality platfrom), but I had 3 stores. For every store I had to pay my monthly fee. (Now I am using a platform for affiliate marketing that I can have upto 25 websites for a same low monthly fee. Using it also for eCommerce. PS!!! Today the monthly amount is both for the websites and also for the high quality coaching program + tools! I am getting so much more for my money!)
- Product cost – in eCommerce we have to buy products in bulk(Amazon) to resell them or we can order them directly from supplier and send these products to our customers(without touching the products). There is a product cost. Usually we are selling products 3 priced three time higher, but it depens of the product.So usually product cost is 33%!
- Marketing cost – using paid adds. I used Facebook, Instagram, Adwords & Bing. I mainly focused on Facebook. Why I used paid adds? There is no traffic without it. Google loves content NOT just products. So every content site ranks higher in Google. (In affiliate marketing that is where most of our focus is!)Very often my marketing expense was more than the customer paid me! So I was losing money. There were only a few winning campaigns (100 > 1) that actually made me money. From every 100 campaign/product I tested 1 turned up to be profitable. But I was losing so much money with 99 campaigns, that I needed different strategy! (Now I know how I will make six to 7 figures with eCommerce. It takes a little more time, but it`s going to be more stable!)
- Fees – Shopify and PayPal have their fees. So with every purchase I also pay a little fee for Shopify and for PayPal. Thei offer good services, but these fees can be big.. if you have hundreds of orders! (With new strategy it dosen`t bother me!) When you are starting out, every dollar counts. If now.. your are not a real entrepreneur! Think about it. Everybody can spend…, But how many people are actually able to make money??! (Some people make jokes about money and women! That there are 2 ways to become a millionaire. One is that you make a million dollars and the other is that you become a billionaire and then get married and you will end up as a millionaire. Yeah I understant that it`s a joke. But the reallity is.. if you have a lot of money and you don’t know where to put it… cal ANY entrepreneur! They will know where to put it! 😀
- Improving my shop – Shopify is advanced platform, but it also offer different aplications for your store.. so I ended up paying over $100 a month only for ONE shop! And I still didn`t used all the aplications I wanted to use. My monthly fee would be many times higher!
- Platform expenses – There are people who teach the FREE method, but even they are advising you to not start free! It dosen`t actually work. I use platform that gives me HOSTING(It meas I can host my website with them), COACHING(I can access a step-by-step coaching platform that teaches me how to set up my website, how to improve it, and how to monetize it. They have been on the market over 12 years and they are high quality. Always improving their technical and coaching side.), TOOLS(I can use different tools to make my marketresearch, some tools help me get better ranking in Google, some tools help me to improve my website. There are many valuable tools. My friends who also use this tool, can’t believe that it`s so cheap. Because me and my friends all were in the eCommerce business together) and COMMUNITY(Other members of that coaching program share their experiences, owners of the company are still there after 12 years. There is a live chat.. it relly helps to get your questions anwsered in matter of hours/minutes.) This platform has a FREE($0/month) membership and a PREMIUM MEMBERSHIP($49/month). And I can have up to 25 websites for same money!
- Product cost – As affiliate marketers we are building our own online presence and then sending this traffic to different offers from different companies. We don’t have any product cost.. we make a affiliate commision from every sale our traffic makes. Different companies pay differently.. I have seen companies that pay up to 75%! (Example: If you send a client that pays $100 for a product, then you will make $75!) Why companies pay that much? Because you helped them get a sale. As I told earlier.. when I was doing eCommerce.. my cost for getting a client was never stable. I would rather have a stable and low(25%) profit from my products as a company rather than unexpected one. Like I said.. 99 times out of hundred I was losing money! Not cool!
- Marketing cost – As an affiliate marketer, we can use paid traffic, but we don’t have to. We are using value marketing or content marketing that takes a little bit more time, but is more efficient and is FREE! (This program teaches, how to do content marketing successfully!)
- Fees – As an affiliate marketer, we still have fees. But the fees are very much lower. They are so low, that they don’t even matter.
- Improving our website – For this day have haven`t paid any extra amount to get some extra features. Very IMPORTANT feature SSL or (HTTPS) that is now quite important for Google is included in Premium Membership with no extra cost. It`s a feature that protects our clients data on our websites. I see so many blogs on free platforms and only using HTTP.. They are now ahead of the game. It hurts their business. As I mentioned. There are no extra costs at this point. This is very good, because now I can use the rest of the money improving my business, if I want to. I don’t HAVE TO pay, I can choose to pay!
I spent thousands and now I am only spending$49 every month!