Dropshipping has emerged as a preferred online business model for risk-averse marketers.
You need very little capital and very little overhead cost and undertake no hassle in packaging and shipping of products.
But does it compare to other models of passive selling like Google AdSense?
You have to really dive into the world of Google AdSense and dropshipping to understand the difference between the two and the potentials of the two models.
Effort and time to start earning revenue
A dropshipper usually rides the wave of popularity of an e-commerce giant.
You just need to link your webstore to Amazon.
So what you basically need to do as a drop shipper is – build a webstore and link it with an established e-commerce site, link the webstore with the inventory of the drop shipping supplier and wait and watch.
As people search for goods in the e-commerce portal, they get directed to your site to buy stuff. This implies less effort and less time to start earning revenue.
However, if you want to earn with Google AdSense, you really need to be patient.
Google AdSense works only when you have a steady publication of niche content such as technical, financial or some other content for which there is a dedicated and growing audience.
To get really noticed by Google Crawler you need to optimize your site and also add regular content in the same niche.
That means a lot of effort and time.
However, one positive aspect of Google AdSense is that once your website becomes popular and establishes itself in a niche, you just need to keep on publishing and optimizing.
This will keep on bringing visitors which will translate into more clicks on the ads and therefore more revenue that Google would share with you.
Cost of shipping and packaging
A drop shipper has to pay for packaging and shipping although he himself will not be doing any of these. The supplier does the packaging and shipping, but the drop shipper pays for that.
If you try passing on the shipping and packaging cost onto the customer, you risk increasing the cost and thereby driving away some customers.
If you are earning through Google AdSense you need not to worry about packaging and shipping of goods. You are not selling anything, you are just using your website to earn instant money.
Both earn passive income, but there is a difference
Both dropshipping and Google AdSense let you earn a passive income, but there is a basic difference between the two types.
While you need to have a webstore for earning the passive income, you need a website or a network of websites to earn that money.
While the drop shipper needs to pay for the goods, it’s packaging and shipping to the supplier, you don’t need to do anything if you are earning through Google AdSense.
To the drop shipper, it is the customer who pays for the price of the products.
The price of the products also includes the shipment cost and the packaging cost.
To the Google AdSense user, it is Google who pays.
Google gets the money from the advertiser who displays the advertisement or advertisements on your website.
As visitors to your website click on an advertisement, the advertiser pays the agreed cost-per-click amount to Google.
Google, in turn, shares this amount with the website owner.
Limitations On Earnings
When you are dropshipping, there is practically no limitation on the variety of products to be sold.
Yet, the problem with different suppliers, different shipment rates, and different packaging cost, the cost for drop shippers increase as the basket of products broadens.
This indicates that there is a limit to which you can stretch your dropshipping business.
If you are using Google AdSense, you need not to worry about limitations.
You have a practically unlimited scope of earning.
However, to really have that you need to have a network of websites on a variety of niches.
So if you are covering technical issues, you need to provide content for the entire spectrum of technical issues related to say mobiles or certain issues plaguing mobiles or something else that has a wide user base.
You need to continuously provide fresh and engaging content and may need to engage good writers in order to write good stuff and increase traffic.
Hassle and cost
For dropshipping, practically there is very less hassle, but you have to bear the cost of shipment and packaging.
However, for Google AdSense user the hassle of managing the websites, the content and the affiliate websites is a huge task.
You need to hire staff to do all these. This increases hassle as well as fixed costs.
For a drop shipper there is no fixed cost.