Is dropstreaming better than dropshipping?
Jan 12, 2023
Dropstreaming and dropshipping are both popular online business models, but they each have their own unique advantages and disadvantages. In this blog post, we'll explore why dropstreaming may be a better choice for some individuals or businesses compared to dropshipping.
First, let's define what each business model is:
- Dropstreaming: In this model, people make money by uploading music on Spotify or other streaming stores like Amazon Music. The music they upload is bought from a producer who makes it for them, called a ghostproducer. Dropstreamers don’t have to deal with products, supply chains or customer service. Dropstreamers are essentially the middle-man between producer and listener.
- Dropshipping: In this model, a business partners with a supplier who ships products directly to the business's customers. The business doesn't need to keep any inventory on hand and only pays for the products when they are sold. Dropshipping needs a close connection with customers since they deal with delivery times and real world products so a customer service is required.
One of the biggest advantages of dropstreaming is that it requires much less capital to get started. Unlike dropshipping, where you need to have the capital to buy inventory from a supplier, Dropstreaming only requires a Spotify account, some $ for tracks and promotion. This makes it a great option for those with limited financial resources. Dropstreaming can be done with $50 - $100, however the more budget you have to spend on advertising or promotion, the faster you can grow.
Another advantage of dropstreaming is that it is less risky than dropshipping. Dropshipping requires you to have a good relationship with your supplier and be able to trust that they will ship your products on time and in good condition. If the supplier fails to do this, your customers will be unhappy and may leave negative reviews, which can harm your business. With Dropstreaming, you don't have to worry about any of these risks because you are not handling any products or logistics and you don’t need a customer service since you’re just providing music to people on platforms like Spotify.
Additionally, Dropstreaming allows you to promote music to people who already listen to music, so you don’t need to convince them to listen to music. While dropshipping typically requires you to focus on one specific product or niche. This can be beneficial for those who want to diversify their income streams.
In conclusion, it's hard to say which model is best since it all depends on what you're looking for in a business model. Dropstreaming is a great option for those who want to start an online business with minimal capital and risk. It also allows for greater flexibility because you don't need any product or customer service, it's just music! However, it's important to note that both dropstreaming and dropshipping have their own set of benefits, and the best option for you will depend on your specific situation and goals.
If you want to find out if dropstreaming is the business model for you, you can watch my free 30-minute dropstreaming training here:
Stef.
