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1000usd budget, eCommerce or Affiliate marketing

by Ruwen
58 replies
Well guys, I'm new to the digital marketing scene but I'm passionate about marketing in general and have been studying up on eCommerce and affiliate marketing.

My budget is 1000usd and because of my passion and belief in starting a physical product business, I'm leaning towards going the eCommerce route. Droppshipping at first until I have a big enough budget to start private labelling or wholesale.

Now I know that eCommerce requires a big budget to truly be successful despite what guru's say, and the success is the product and niche.

Would it be advisable to try my hand at affiliate marketing and get used to making money online (despite how hard that may be), before transitioning into eCommerce?

Any thoughts and guidance is welcome.
#1usd #affiliate #budget #ecommerce #marketing
  • Profile picture of the author Alex Peltonen
    You can create your own eCommerce store that sells Amazon products. I think that's a very good way to go as a beginner.
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  • Profile picture of the author crackhouse
    dude, $1,000 is paltry to get into the game these days. Keep saving yo money.
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    • Profile picture of the author dave_hermansen
      Originally Posted by crackhouse View Post

      dude, $1,000 is paltry to get into the game these days. Keep saving yo money.
      You can start an eCommerce dropshipping site for 10% of that amount. The key is the eCommerce model and how you advertise. If you're like many people here and pick the wrong product and wrong advertising platform, you can waste a ton of money, though.

      You also might want to consider Walter Hay's course (a.k.a. ImportExport here on the forum). $1,000 is more than enough to buy directly from real Chinese manufacturers and white label your own brand.
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      • Profile picture of the author Ruwen
        Thanks alot, considering my budget, do you think it would be better to go with the Dropshipping model? Have you seen success with white labelling on a limited budget? I will check out walter hay's course. I've done alot of research into the different models, my initial preference was to go the FBA route but due to the fact I'm in South Africa, the red tape tough. I do not want to target a local market though. I want to target an international market (US, Canada, etc).

        Basically though, I'm looking to generate a revenue stream of 1000-3000 a month if possible.
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        • Profile picture of the author dave_hermansen
          Originally Posted by Ruwen View Post

          Thanks alot, considering my budget, do you think it would be better to go with the Dropshipping model? Have you seen success with white labelling on a limited budget? I will check out walter hay's course. I've done alot of research into the different models, my initial preference was to go the FBA route but due to the fact I'm in South Africa, the red tape tough. I do not want to target a local market though. I want to target an international market (US, Canada, etc).

          Basically though, I'm looking to generate a revenue stream of 1000-3000 a month if possible.
          If you are looking to white label, Walter Hay is your guy - especially considering that you are in South Africa and it's not going to be easy to get U.S. suppliers to dropship for you without being a U.S. business. Sure, you can dropship the same exact Chinese stuff from AliExpress that everyone else is selling, but be prepared for a ton of competition with that super-low barrier to entry. You don't need any money for inventory going that route (or any plan that involves dropshipping, for that matter)..

          Also, you can't really white label and dropship, unless you're talking something like on-demand printing. If you are going to white label, you've got to buy it in bulk/light bulk and ship it yourself or use a fulfillment service. There is more risk in that model and more investment but if you can really establish a brand with the right product, it's the pathway to a whole lot of money.
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        • Profile picture of the author mspike
          dropshipping is great. You need to test few product using the paid marketing in order to find the winner. That's the only downside. But go ahead and give it a shot! Good luck.
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        • Profile picture of the author Pablo Visconti
          Originally Posted by Ruwen View Post

          Thanks alot, considering my budget, do you think it would be better to go with the Dropshipping model? Have you seen success with white labelling on a limited budget? I will check out walter hay's course. I've done alot of research into the different models, my initial preference was to go the FBA route but due to the fact I'm in South Africa, the red tape tough. I do not want to target a local market though. I want to target an international market (US, Canada, etc).

          Basically though, I'm looking to generate a revenue stream of 1000-3000 a month if possible.
          Dropshipping i think has a much higher ceiling but also requires a high budget, at least when it comesto fb ads.

          Having started off doing shopify, i would recommend affiliate marketing first, and then maybe do shopify.

          Alternatively, i would save up some money, maybe get to like 3k and then do dropshipping
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        • Profile picture of the author xInd
          Originally Posted by Ruwen View Post

          Thanks alot, considering my budget, do you think it would be better to go with the Dropshipping model? Have you seen success with white labelling on a limited budget? I will check out walter hay's course. I've done alot of research into the different models, my initial preference was to go the FBA route but due to the fact I'm in South Africa, the red tape tough. I do not want to target a local market though. I want to target an international market (US, Canada, etc).

          Basically though, I'm looking to generate a revenue stream of 1000-3000 a month if possible.
          I would suggest making an attempt to remove "IF" from your thoughts and words.

          Great, successful people, usually do not know how they are going to do something when they set out to do it, they just believe they can, they cast away all doubt, and give it their all.

          Drop shipping is a very stable/reliable business model, as people will always need things, and the Internet is the best place to get them these days... The risk factors and fears of buying online have almost disappeared.

          It tends to work best when you carve yourself a niche. Pick a product line to focus on, a category... Makes the marketing efforts a lot easier since you can target your keywords across the site as well as each product.
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      • Profile picture of the author Importexport
        Originally Posted by dave_hermansen View Post

        You can start an eCommerce dropshipping site for 10% of that a eCommerce Sites, Wholesaling & Drop Shipping mount. The key is the eCommerce model and how you advertise. If you're like many people here and pick the wrong product and wrong advertising platform, you can waste a ton of money, though.

        You also might want to consider Walter Hay's course (a.k.a. ImportExport here on the forum). $1,000 is more than enough to buy directly from real Chinese manufacturers and white label your own brand.
        You are quite right @dave_hermansen. I have had quite a few people start importing and selling at a profit with only a small budget.

        Here is one, who probably had the smallest budget and he sold his product on Amazon: "Ok. From extremely skeptical to successful completion. Credit given where credit is due. I followed the book instructions you laid out. Took my time to double check everything and was able to successfully import an order from China. Not only that but it was also a "sample order" for less than 300.00. A 300% mark up has allowed to get initial investment back and I have 70% of my inventory left. Stop promoting your book. Your encouraging competition for me. Many thanks." Copy on file for checking by FTC if required.

        Walter Hay
        Importexport.
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    • Profile picture of the author Adams70
      Originally Posted by crackhouse View Post

      dude, $1,000 is paltry to get into the game these days. Keep saving yo money.
      I think CJ does let you apply and takes commissions on your sales. You do not need to pay in advance. So if you do get at least few profitable affiliates - why not!
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    • Profile picture of the author Jared White
      according to who or what?
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  • Profile picture of the author InternetMarketingMadeEZ
    Yes, you can start with affiliate marketing first as it will cost you less. Learn how to drive the targeted traffic before you go into deep water. Conversion is the key for any internet business.
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  • Profile picture of the author Maxxx333
    Originally Posted by Ruwen View Post

    Well guys, I'm new to the digital marketing scene but I'm passionate about marketing in general and have been studying up on eCommerce and affiliate marketing.

    My budget is 1000usd and because of my passion and belief in starting a physical product business, I'm leaning towards going the eCommerce route. Droppshipping at first until I have a big enough budget to start private labelling or wholesale.

    Now I know that eCommerce requires a big budget to truly be successful despite what guru's say, and the success is the product and niche.

    Would it be advisable to try my hand at affiliate marketing and get used to making money online (despite how hard that may be), before transitioning into eCommerce?

    Any thoughts and guidance is welcome.
    Hello buddy, i'll suggest you to have a look on Affiliate marketing, and start learning how to promote, and gather some more money, then if you want to move you could do it!
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  • Profile picture of the author DIABL0
    I've been promoting affiliate / CPA offers for over 17 years.

    I heavily promote PPL (pay per lead...lead generation) offers. This is because there is no credit card / purchase required to complete an offer. All a user has to do is fill out a form, so conversion rates are typically much higher compared to offers that require a sale to be made.

    I favor offers that have a make, get or save money benefit to them, as they have overall worked the best. They also tend to have the greatest mass appeal (will be of interest to a large general audience), so the potential exists to produce high volume and they are fairly easy to cross promote on the back-end.

    Some of the verticals (niches) I have done extremely well with are: education, insurance, loans, debt, credit, mortgage, assistance, discount offers, homeowner offers, etc...

    The bulk of the PPL offers that I promote pay $20-$40 per lead, but I also promote offers that pay more and less. You don't want to get too caught up on what an offer pays because how well it converts is just as important. For example, if you have an offer that pays $9, but if it converts at 2X or more of a $20 offer, then it will perform about the same or possibly better. At the same time, if you have an offer that pays $90 and it converts poorly, it may not even be worth promoting.

    I have also done just as good with dating website sign-ups and pretty good with free trial + S/H offers. I also promote a very limited number of offers that are straight sales. For them, mass appeal is still the number one thing I look for and I also look for one of the following...

    1) The product is new and/or novel-unique and you can't purchase it locally or even something similar. I don't waste my time with it once something similar shows up in Walmart.

    2) The buyer can truly get what is being offered at a decent discount.

    3) Solves a house is on fire type problem.

    However, I mainly promote non-PPL offers on the backend.

    Bottom line, it's far easier to get someone fill out a short form than to get them to pull out their credit card and make a purchase. So why struggle with trying to sell this or that, when you can provide free information that users want/need and get paid well doing it.

    Something to think about.
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  • Profile picture of the author ChrisBa
    I would go for affiliate marketing, but that's just me
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  • Profile picture of the author DripRevenue
    Affiliate marketing, hands down. I do both and have enjoyed both, but eCommerce simply has a higher barrier of entry than affiliate marketing. I would recommend no less than $5,000 to get started in eCommerce when it comes to testing products, optimizing pixels, and apps.
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    • Profile picture of the author india1
      I am introduced
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  • Profile picture of the author Houndlander
    Affiliate marketing
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  • Profile picture of the author bestAd
    I actually posted in details how I made my first ecom store profitable but WF never approved it. I guess it was too detailed.

    From my experience, affiliate marketing is more difficult for a newbie.

    I have been an affiliate marketer since 2007 and it took me almost 4 years to make good profit from it.

    With ecom, it took me less than 3 months.

    Maybe because of the experience gained as an affiliate marketer made it easier, we will never know for sure.

    But If I were in your shoes, I will start with dropshipping.

    Just make sure you do the following

    1) Use Shopify

    2) Pick a product that is not saturated.

    3) Create a store with good trust factors such as professional looking design, no spelling and grammar errors, very good about us page and more.

    4) Last but not least, do not start with FB ads, use other sources such as Google and Bing to make sales and gather data before running Fb ads.

    5) Very precise tracking of your ads.

    Hopes this helps,

    Chuks
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  • Profile picture of the author offmarketinvestor
    "if you have to ask.......you are not ready"
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  • Profile picture of the author ryanbiddulph
    Whatever you love doing independent of budget is the way to go.
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  • Profile picture of the author salsym
    Originally Posted by Ruwen View Post

    Well guys, I'm new to the digital marketing scene but I'm passionate about marketing in general and have been studying up on eCommerce and affiliate marketing.

    My budget is 1000usd and because of my passion and belief in starting a physical product business, I'm leaning towards going the eCommerce route. Droppshipping at first until I have a big enough budget to start private labelling or wholesale.

    Now I know that eCommerce requires a big budget to truly be successful despite what guru's say, and the success is the product and niche.

    Would it be advisable to try my hand at affiliate marketing and get used to making money online (despite how hard that may be), before transitioning into eCommerce?

    Any thoughts and guidance is welcome.
    Affiliate marketing is the best option you have for your kind of budget. eCommerce is too competitive hence you have to reduce your margin and your money gets stuck because you always need to keep stock so cash flow is difficult to maintain.
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    • Profile picture of the author bestAd
      Originally Posted by salsym View Post

      Affiliate marketing is the best option you have for your kind of budget. eCommerce is too competitive hence you have to reduce your margin and your money gets stuck because you always need to keep stock so cash flow is difficult to maintain.
      Not with dropshipping
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  • Profile picture of the author Jay Brazen
    I would go with affiliate marketing, lot lower cost to start.

    I did start it with same budget actually.
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  • Profile picture of the author rdevansii
    Originally Posted by Ruwen View Post

    Well guys, I'm new to the digital marketing scene but I'm passionate about marketing in general and have been studying up on eCommerce and affiliate marketing.

    My budget is 1000usd and because of my passion and belief in starting a physical product business, I'm leaning towards going the eCommerce route. Droppshipping at first until I have a big enough budget to start private labelling or wholesale.

    Now I know that eCommerce requires a big budget to truly be successful despite what guru's say, and the success is the product and niche.

    Would it be advisable to try my hand at affiliate marketing and get used to making money online (despite how hard that may be), before transitioning into eCommerce?

    Any thoughts and guidance is welcome.
    Hey Ruwen!

    This is a loaded question for all that you are interested in and the budget. However, I am one to be very frugal and keep my ROI on the up. If you have never done any one of these, (dropshipping, FBA, or Affiliate marketing), if you are new, that $1000 can be eaten quickly by making mistakes. I personally started with FBA, however there is a learning curve to it. I learned most my information from youtube videos and was successful enough to keep making money with it. Trouble I had is that I don't like having to buy the inventory and do all the extra work as a warehouse, even sending it to Amazon. What I would recommend is investing in a course of some kind. Learn what you can from youtube videos, but I really started earning money when I put "skin" in the game by getting actual training to help me learn what I wanted to know. So if it is dropshipping, there are a lot of courses out there, find one that you feel comfortable with and can see value with it and go full board with it. Its worth the price of a course if you learn correctly. If you try to learn it all on your own, you are almost guaranteed to lose your money. Online businesses are tough, however very lucrative once you get it going.
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    • Profile picture of the author Ruwen
      Hey there. Thanks for the feedback. I was initially very interested in the FBA model, but due to the fact I'm in South Africa, I think there is difficulties registering as a seller on Amazon. I am very interested in first pursuing a course to avoid any costly errors and to ease in. Are there any good courses you can recommend?
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      • Profile picture of the author Importexport
        Originally Posted by Ruwen View Post

        Hey there. Thanks for the feedback. I was initially very interested in the FBA model, but due to the fact I'm in South Africa, I think there is difficulties registering as a seller on Amazon. I am very interested in first pursuing a course to avoid any costly errors and to ease in. Are there any good courses you can recommend?
        Have you considered selling on Bidorbuy.co.za? There is a thriving market there and if you do your market research you will find products that are in demand but prices are way too high.

        You could find manufacturers in many countries, not only China, and import them to South Africa in surprisingly small quantities at prices that leave you very big profit margins.

        Don't be put off by the myth that you have to buy huge quantities from overseas suppliers. I have taught many hundreds of newbies in countries all over the world how to buy much smaller quantities than the big Minimum Order Quantities (MOQs) often quoted, and get them at genuine ex-factory prices.

        If you want to set up your own private label business, you can do that quite easily. You don't have to get your supplier to label the products for you. In fact it is often cheaper to brand or label your product locally than to pay for it to be done even in China.

        If you decide to investigate this further, just be sure to learn how to tell which of the suppliers advertising on B2B sites such as Alibaba are genuine manufacturers. The vast majority of them claim to be manufacturers but are in reality traders.

        For some help to introduce you to safe overseas sourcing and importing, you might like to read through my thread: Ask Me Anything About Product Sourcing And Importing For Profit. ― Veteran Importer Here. This thread has now been closed, but I have recently opened another here: Product Sourcing the Safe Way where you can ask questions on the subject and get answers from someone who has been there - done that.

        Walter Hay
        Importexport
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        Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author Bryan
    You would get your best return in Affiliate Marketing. I'd suggest going this route:

    Choose and niche in a profitable market that you have have an affinity for and drive paid traffic to grow your list. There is a lot you can do with Facebook to engage with and build an audience too, so I'd make that part of the strategy.
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  • Profile picture of the author MartinBuckley
    100% for sure put your time and money into Affiliate Marketing and you will see results if you take action and promote a product that has a wide appeal to people.
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  • Profile picture of the author superowid
    Affiliate Marketing... you can do it even with ZERO dollar. Keep your money save!
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  • Profile picture of the author Joseph Janulewicz
    I am in the same position but I have a little bit more in my budget. I chose to go with affiliate marketing. eCommerce is ok but your money will be tied up for longer. With AM, you can start with your $1000 and start with your first website, hosting, and start testing some ads. Maybe start creating and growing some social media accounts, creating landing pages, buy and test some ads. Good luck bro!
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  • Profile picture of the author maxsi
    Amazon stores need lot of work.... (LOT of work). I think $1K is not enought

    you can start copy-trading asap and make recurring monthly profits with ZERO work
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  • Profile picture of the author Blake McCammon
    I vote ecommerce
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  • Profile picture of the author cearionmarie
    Affiliate marketing works best for me. You should be in the right track in that one.
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  • Profile picture of the author mspike
    You can start with affiliate marketing for sure, but that will take time. So if you can stay patient that's perfect. You can start dropshipping as well. All you need is a winning product. IF you don't want to get subscription with Shopify to make your store then you can sign up with POD platform like GearBubble, Cafepresss or viralstyle. They are free but you have to do your design research. Or you can start with Amazon FBA and start small, like I did. I did dropshipping first with amazon and then I moved into Amazon FBA. 1000 USD would work but you have to just start small and scale up from there. Just stay patient.
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  • Profile picture of the author dsimms
    an ecomm site is going to be more difficult and costly to get off the ground because of the random type of products that your e-store may have. For $1000, you can get a blog started along with some high-quality content/backlinks, and if you are going organic, then it may take your site 1-3 years to do anything, and that is because Google does not do you any favors these days, and you will run into competition, no matter what you are selling...

    It does not matter what niche you decide to go with, it is not going to be easy, it will take a lot of work to get it off the ground, and you will be always be paying someone to do something unless you are the jack of all trades. It sounds easy to start a business, and it never is, and most people fail for various reasons, not enough money, not enough knowledge, hiring junk writers, junk seo, etc....

    For every 100 sites that are set up...
    95+ sites will simply fail or never gain any real traction.
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  • Profile picture of the author IGotMine
    the success is the product and niche.
    No, the success is the traffic. You can have the greatest product in the world and if you don't get it in front of the right eyeballs you will make zero.

    due to the fact I'm in South Africa
    Have you considered finding something locally that you can sell abroad? Art, clothing, jewelry, etc.
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  • Profile picture of the author alonzo11
    yep - affiliate marketing - just take your time when picking a niche
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  • Profile picture of the author Discover Ecommerce
    As with anything, researching niches to find a niche with a demand and lower competition is a must in any industry. However, if you don't know what you are doing than affiliate marketing may be the easiest way to go.
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  • Profile picture of the author Cybernetmarket
    I like the Amazon answers above. This is a cheap way to go. You could then use ppc to advetise your store. Just a thought
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  • Profile picture of the author DURABLEOILCOM
    Buy some product wholesale and get started with e-commerce through Ebay and Amazon there's a lot of money to be made.
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  • Profile picture of the author Brianna Trader
    Personally, id say start with affiliate marketing and use the money to purchase software that help put your business into autopilot and once you get more comfortable then you use the money to invest into the business. Having an e-commerce is not its all cracked up to be. (in my opinion).
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  • Profile picture of the author redone111
    Ecommerce is the best choice for you because not need much investment and more chance to succes in short time
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  • Profile picture of the author ChrisBa
    This thread has been going on for a while now. Can you update us? Did you make your decision? And if so, how is it going?
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  • Profile picture of the author JohnVianny
    With 1000 in your pocket you have to put also quite a lot of time.

    Avoid ecommerce.

    Use it for lead generation, with solo ads. So you can start building your list and make profit to reinvest the money.

    Start with squeeze page, set of at least 10 emails for promoting a product, etc.

    Use the section here in warrior forum - classified ads, for finding good solo ad seller, if you are in mmo niche
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  • Profile picture of the author Shkirr12
    Dropshiping would be great with the budget you have. And a great model too
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  • Profile picture of the author affmarketer101
    With $1000 budget, I more likely to choose Affiliate marketing
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  • Profile picture of the author manolo2
    I would start with affiliate marketing as I believe their is more chance to make money on a lower budget. But with either the trick is to learn how to market effectively at which point you can promote anything
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  • Profile picture of the author IeNakiKoRemi
    good luck myfriend.
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  • Profile picture of the author spartan14
    I dont want to discourage you but IM its not easy and even if a consistent investment its still hard to achieve succes as it takes many things to test and it takes time to build an audience etc .I think its better to start learning as much as you can about affiliate marketing and start small with paid traffic and you can invest also that 1000$ in some paid traffic to build an email list .In conclusion i want to say that you should not only put base in just that 1000$ pounds
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  • Profile picture of the author andrew kisilu
    For $1000 It would be better to start off with affiliate Marketing .But this is how I would recommend.
    Why Affiliate Marketing? You simply concentrate on the traffic and conversions

    So Now that you also have an interest in E-commerce but you are starting with affiliate Marketing ...Invest in a course that teaches how to do paid advertising and work on mastering about two ad platforms .As you master this it will help you a lot when you head on to e-commerce and want to run ads for your business.

    As you drive traffic to your affiliate offers you also want to collect leads and then start getting familiar with email marketing.This is another skill that will help you out when it comes to E-commerce.

    By doing Affiliate Marketing you have lesser tasks and risks ,you get the chance to learn valuable skills while also earning then once you get good at it you will have enough funds to get into E-commerce which calls for more responsibilities and budgets.
    Cheers.
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  • Profile picture of the author Robert Bridgen
    Myself. I went for affiliate marketing. that has worked for me The way I work is First of all look for people that have a problem. Then find the product that solves that problem and put it to the people. Make more sales. How to do this is simple. get a facebook page name it after the product you have found then contact. 25 people a day with the problem. Then in 30 days you will be noticed. Hope it helps
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  • Profile picture of the author sebastian1809
    I think start with Affiliate marketing first to generate some more money. Learn new skills within this path and then once you have more capital to work with, go into Amazon fba or other ecom with paid Ads. Cheers
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  • Profile picture of the author rdevansii
    I would say Affiliate marketing. Investing in a course to learn it, will also do you well in any other markets. Affiliate marketing can provide you that passive income that you are looking for. Takes some time, but it is worth it!
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    ATTENTION MARKETERS!! Build An Online Business with Residual Income! Free Training Reveals: A 90 Day Challenge to Making $2,000 - $4,000 per Month Online - No Credit Card Needed!

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  • Profile picture of the author kukster
    hi buddy 1000$ is enought to start a buissnes if you know what are you doing . Is enought to start affilate and ecommerce money making machines but first you must master to chosing a niche and get the fuel to your products- internet trafic if you master it you surly will make money !
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