Drop Shipping VS Network Marketing!

34 replies
Ok so I've been thinking about this for the past few hours but if you only had these two options for making money which one would you choose?

The reason I ask this is because mlms typically offer great compensation but no really wants these products on a massive scale like they do for a household name such as apple. Am I right or am I right?

Do not mention DSD because I know they have built their product around that idea but to me it's true drop shipping that they teach imo.

Think about it if you had a few iphone 6's on hand don't you think you'd be able to sell it a faster than an mlm product? Of course you would....???

How much convincing do you think you'd have to do to get the sale. I mean people kill over those things LITERALLY!
#drop #marketing #network #shipping
  • Profile picture of the author Gambino
    I'd go dropshipping, but good luck finding someone that's going to dropship iPhone 6's for you with any type of worthwhile profit margin. In my experience, dropshipping products like that is not as easy at it sounds.
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  • Profile picture of the author Robert Cauthorn
    I think drop shipping is the way to go and your right, people want gadgets and physical products that they know and trust. Another thing is that you can scale a drop shipping business and sell it at some point in the future. You can't sell a mlm business ( i don't think). Check out wholesale2b.com (no affiliate link) and try them out and see if it's for you. Take Care and Take Action my friend.

    Rob
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    • Profile picture of the author regulardan
      Originally Posted by RobLuv View Post

      I think drop shipping is the way to go and your right, people want gadgets and physical products that they know and trust. Another thing is that you can scale a drop shipping business and sell it at some point in the future. You can't sell a mlm business ( i don't think). Check out wholesale2b.com (no affiliate link) and try them out and see if it's for you. Take Care and Take Action my friend.

      Rob
      Cool but the guy in those videos is not someone I trust from past clicksure experience......
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      • Profile picture of the author chewenhua
        I would go for Network Marketing as the entire process can be fully automated, you just need to drive traffic. My signature is one good example on how this can be achieved
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        • Profile picture of the author Jeff Schuman
          My parents and uncle and aunt were full time in Amway for 20 years. They made good money because they moved product every month. It was harder in those days then it is now, but one thing remains constant.

          Network marketing is still about relationships and networking. And...you still have to move product through retail and wholesale distribution. With drop shipping you still move product, but you can do it without doing any networking.

          Do you like working with people and helping people?
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by regulardan View Post

    if you only had these two options for making money which one would you choose?
    Network marketing. No contest at all.

    Originally Posted by regulardan View Post

    mlms typically offer great compensation but no really wants these products on a massive scale like they do for a household name such as apple. Am I right or am I right?
    I suspect you're right about the great majority of MLM companies, but not about the exceptional ones.

    But here's the thing: with MLM, it's only the exceptional ones that matter, because it's only the exceptional ones that survive over the decades (and you clearly wouldn't want to join one that isn't going to survive over the decades?).

    So, it follows that you need one that's already very well-established and has a reliable business with sales income based not on "distributor purchases" but on genuine retail sales to genuine retail customers? Those are usually the companies with either exclusive products, or non-exclusive products of consistently very high quality at consistently lower-than-shop prices.

    Originally Posted by regulardan View Post

    Think about it if you had a few iphone 6's on hand don't you think you'd be able to sell it a faster than an mlm product? Of course you would....???
    This question isn't comparing like with like.

    You're comparing "selling a product" with "selling a product-based business opportunity", in some ways, really?

    Originally Posted by regulardan View Post

    How much convincing do you think you'd have to do to get the sale.
    This question illustrates a popular fallacy, Dan: being successful in network marketing isn't about "getting the sale" at all. The winners aren't the people who sponsor the largest numbers of distributors, or the people who can find the most customers: they're the people who can retain business-builders in their downlines.

    One thing that all the really successful network marketers I know - and have read about - have in common is that they never try to "convince" anyone.

    If widespread industry wisdom is to be believed at all, people from sales backgrounds, overall, do worse-than-average in network marketing. Teachers do much better. There may be reasons for that.


    .
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    • Profile picture of the author regulardan
      Originally Posted by Alexa Smith View Post


      This question isn't comparing like with like.

      You're comparing "selling a product" with "selling a product-based business opportunity", in some ways, really?


      .
      Alexa,


      Now look at your wording "product-based business opportunity" before reading on....

      Okay, now if I take away the business opportunity it is STILL a product.
      If I add back the business opportunity into this equation, that front end product is STILL a product.

      Now these products have certain characteristics, benefits and features that are
      competitive to products outside of the network marketing space (retail products with comp plans)

      At the end of the day...there is a price tag on these items so therefore my comparison is justified by that alone.

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      • Profile picture of the author Alexa Smith
        Banned
        Originally Posted by regulardan View Post

        At the end of the day...there is a price tag on these items so therefore my comparison is justified by that alone.
        Sorry, I just don't agree with you at all, Dan: you compared how you'd do selling an iPhone 6 with selling an "MLM product". My point is that if you're selling an iPhone 6, "how you do" depends on how many you can sell, whereas in MLM it doesn't depend just (or even mostly) on your own product-sales. My perspective, therefore, is that that isn't comparing like with like.

        The income from one business model involves product sales and only product sales and (to use your words) "convincing people"; that's just not true of the other. So the argument that an iPhone 6 sells more easily than "an MLM product", even if perfectly true, isn't really too relevant. In my opinion, of course (for what it's worth, I did have a year's experience of MLM, before I became an internet marketer).


        .
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  • Profile picture of the author travlinguy
    I wouldn't do either, though if there was a gun pointing at my head I'd pick MLM.

    I've been around a while and have investigated hundreds of so called drop shipping opportunities and have not yet found one where it was worth the effort because margins are either nonexistent or so small they're insulting.

    Now if you can get a drop shipping deal with a manufacturer or major distributor that's a different story. But stuff like that isn't found out in the open.
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    • Profile picture of the author Brent Stangel
      Originally Posted by travlinguy View Post

      I wouldn't do either, though if there was a gun pointing at my head I'd pick MLM.
      Me too. Dropshipping without an exclusive deal with a manufacturer is a joke.
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      • Profile picture of the author celente
        Originally Posted by Brent Stangel View Post

        Me too. Dropshipping without an exclusive deal with a manufacturer is a joke.
        I have been to china 2 times, and I thought I was wasting my time. I actually found 2 manufacturers who were not only millinaires, but they were willing to bend over backwards for me. Remember its not in the product, but in the relationships...they value you that in their culture,

        and when you realise its about who you know and not WHAT you KNOW, then you can basically make products, get them designed, just like the guys doing that fidget spinner stuff. Its quite powerful.
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        • Profile picture of the author pawandave
          Banned
          I pick dropship
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  • Profile picture of the author David Keith
    drop shipping is a hard way to go. much harder than network marketing or mlm.

    the big thing with drop shipping is that there is almost no way to have a "usp". most of the time you are competing with many others offering the same exact thing for sale and everyone ends up competing on price alone. Few businesses can make that model work.

    With mlm you have a "USP" built in...you. That may be good or bad, but it is different than what others are offering. And has alexa has pointed out, the opportunity in mlm is as much if not more so about the "opportunity" and not the end products.

    thats why they are so often called pyramid schemes. But the thing is that you can differentiate your opportunity from others with your personal skills and effort.
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    • Profile picture of the author regulardan
      Originally Posted by David Keith View Post

      And has alexa has pointed out, the opportunity in mlm is as much if not more so about the "opportunity" and not the end products.
      This also leads to high attrition rates!! People dropping off your team mainly because they lose their beliefs....
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  • Profile picture of the author tyronne78
    Network marketing hands down. The barrier of entry is lower and I'm guessing it would be less of a headache compared to having a drop shipping business.
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  • Profile picture of the author regulardan
    Yes however to be successful in mlm it's all about you. I should have expanded this topic to reselling wholesale items as well from the beginning. But anyway you are forced to sell people on you because on a massive scale people don't really want the mlm products.

    There is nothing wrong with selling yourself and why people should trust you. I'm just against the heavy emphasis on leading with dodgy products that no one truly truly wants.

    If people could be an affiliate without a forced autoship but with the same comp plans they would do that instead.
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  • Profile picture of the author cjshu99
    Ive never made a penny when I was involved in MLM but have made some pocket money with dropshipping. Plus I spent money on products every month with MLM bt with dropshipping I only paid for my products when I received the sale.
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  • Profile picture of the author DoubleDi
    Dropshipping is deffinitely fastest income source MLM you need patient and promote yourself as an authority Than when you make it after months or years you can earn big
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  • Profile picture of the author SteveSki
    Network Marketing because of the ongoing residual income. But most people are clueless about how to do it effectively. It took me years to discover what really works to build a large MLM / Network Marketing organization. It's very simple if you can avoid all of the bad advice given by MLM posers who haven't made a dime and just focus on doing what works and duplicates. But most people do not have the benefit of being mentored by someone who is earning $100,000+ per month.
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  • Profile picture of the author Rory Singh
    Network marketing for sure. You can make more money than just regular affiliate marketing because of the multiple tier payout structure.

    With affiliate marketing you only get paid on one tier (you).

    With network marketing, the people who 'buy' from you help you make commissions in the form of pass ups and percentages per sale.

    And you can build network marketing online without having to call a single soul. I have done it and have made sales from people I never met or called personally.

    With drop shipping, you need to establish connections for it to work for you.
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  • Profile picture of the author erikastanley
    I will go with dropshipping. I have made some money with both dropshipping and network marketing before but I find it more difficult with mlm as a lot of people have mlm allergy.
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  • Profile picture of the author PLR Basket
    Originally Posted by regulardan View Post

    Ok so I've been thinking about this for the past few hours but if you only had these two options for making money which one would you choose?

    The reason I ask this is because mlms typically offer great compensation but no really wants these products on a massive scale like they do for a household name such as apple. Am I right or am I right?

    Do not mention DSD because I know they have built their product around that idea but to me it's true drop shipping that they teach imo.

    Think about it if you had a few iphone 6's on hand don't you think you'd be able to sell it a faster than an mlm product? Of course you would....???

    How much convincing do you think you'd have to do to get the sale. I mean people kill over those things LITERALLY!
    For someone who has been dropshipping for about a year, I'd say dropshipping is your best bet. However, finding a legit supplier for iPhone 6's might be close to impossible.

    Dropshipping would be nearly perfect if it wasn't for chargebacks and dealing with returns.
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  • Profile picture of the author eugenedm
    I have experience with dropship businesses and a good month could bring 5 digits. Make sure that your margins are high. But you need to stick with it, it's like everything, if you do it enough time you most likely will succeed. Don't go into too crowded markets though, your margins could go down quickly.

    Good luck
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    • Profile picture of the author Shellg
      Originally Posted by eugenedm View Post

      I have experience with dropship businesses and a good month could bring 5 digits. Make sure that your margins are high. But you need to stick with it, it's like everything, if you do it enough time you most likely will succeed. Don't go into too crowded markets though, your margins could go down quickly.

      Good luck
      I was gonna do dropshipping till I found how small the margins are. Now I have started importing straight from the factory in China and Im selling at 5 X my cost.

      Adrian Miszkiel said to buy from Alibaba, but I wouldnt risk it. Too many scams.
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    • Profile picture of the author celente
      Originally Posted by eugenedm View Post

      I have experience with dropship businesses and a good month could bring 5 digits. Make sure that your margins are high. But you need to stick with it, it's like everything, if you do it enough time you most likely will succeed. Don't go into too crowded markets though, your margins could go down quickly.

      Good luck
      I agree, it takes time to set up but drop shipping once everything is set in order, is about 1 hour a day , and you are good to go to do $x,xxx fast.
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  • Profile picture of the author fernelis2009
    You´re right!

    I´d choose dropshipping
    with mlm you have to follow tons of rule
    that´s not being your own boss.
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  • Profile picture of the author MarkHernandez
    Totally try going with dropshipping, at least you would be creating your own business..
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    • Profile picture of the author Importexport
      Originally Posted by MarkHernandez View Post

      Totally try going with dropshipping, at least you would be creating your own business..
      You might be creating your own business but it's a business model that doesn't give you much control.

      Your reputation including feedback, is in the hands of your suppliers. If they let the customer down, you get the bad feedback.

      When considering the pros and cons of dropshipping as a business model I would suggest you think seriously about the pathetically low profit margins usually earned from dropshipping.

      This is not just my opinion. You will find countless posts on WF talking about the low margins. When responding to one such post, a dropship aficionado boasted about his 20% margin !!!

      I have taught hundreds of newbies how to buy small quantities direct from manufacturers in China, and some report making 300% on their first small shipment.

      Direct importing is a viable and highly profitable alternative to dropshipping.

      Here are a few post by others who have commented in other threads about the pros and cons:

      "All the products I was interested in were being sold cheaper on eBay than I could buy them for from dropshippers. So, my question is does anyone here make money with dropshipping?"

      "Why would you Drop ship when you can import and have full control over your inventory. It doesn't make sense."

      "Explore China , You leaving a lot of money on the table trust me on this.
      My first experience in China blew my mind ....If you get a chance to go over there do it. Your mind will spin because you'll see things in China for $5-$10 that are selling in Wal-Mart for $200-$300 ..... There is no reason why you can not do the same as them just in your own local market and your own product.
      In a nut shell China is where the big profits are made. .... When you import and CONTROL the goods you CONTROL the price. .... When you buy from middle men your always buying at inflated prices."


      "Customer returns. By far the biggest issue when dropshipping. Remember, Dropshippers DO NOT accept returns on items unless the item is faulty (some may accept item exchanges, though I have never come across one that accepts a return just because the end consumer changes his/her mind). When you buy from a Dropshipper it is classed as a Business to Business transaction (B2B), and the consumer protection laws do not apply in B2B transactions."

      This last quote was in the context of the need to have sufficient funds to cover inventory, because if customers chanhge their minds, maybe due to a model upgrade just released, you have to refund, and suddenly finance those refunds.

      You can buy small quantities direct from manufacturers at genuine ex-factory prices, but for maximum profits you need to avoid middlemen including dropship suppliers
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  • Profile picture of the author kazim
    I suggest you to read this article. It will help you to get a clear idea on Drop Shipping VS Network marketing.
    Dropshipping Vs Affiliate Marketing: Which Online Business Will Make You More Money?
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  • Profile picture of the author DURABLEOILCOM
    Originally Posted by regulardan View Post

    Ok so I've been thinking about this for the past few hours but if you only had these two options for making money which one would you choose?

    The reason I ask this is because mlms typically offer great compensation but no really wants these products on a massive scale like they do for a household name such as apple. Am I right or am I right?

    Do not mention DSD because I know they have built their product around that idea but to me it's true drop shipping that they teach imo.

    Think about it if you had a few iphone 6's on hand don't you think you'd be able to sell it a faster than an mlm product? Of course you would....???

    How much convincing do you think you'd have to do to get the sale. I mean people kill over those things LITERALLY!
    I do not limit my business endeavors, you must diversify and not put all your eggs in one basket. Start with one get it off the ground and then develop other money making enterprises.
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  • Profile picture of the author BradfordHatch
    dropshipping for sure, you will have much more control and you can write your own paychecks if you do the niche selection and product selection part right..
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  • Profile picture of the author Kay King
    And YOUR strategy is to bump old threads to recommend YOUR product....?

    From another thread:

    as well as now provide a "mlm downline building service". (google: MLMRC ) you'll find it.
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  • Profile picture of the author SEONinjaa
    Drop shipping is a way to run an online store where you don't have to store inventory and you don't have to ship product. The way it works is that you set up your storefront and collect money just like a regular store.
    Affiliate marketing is when you refer a customer to another business and take a commission if the customer makes a purchase. In effect, your website acts like a marketing and referral engine and you don't actually sell any product.
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  • Profile picture of the author makingyoungmoney720
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