Airbnb VS. Amazon FBA VS. Dropshipping

If you’re looking to start a business, which direction should you go? Let’s compare Amazon FBA, drop shipping, and Airbnb management.

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Many people want to start their own business, for freedom, control, a good income. And many people ask themselves, what should I pursue? Lots of people talk about Amazon FBA, drop shipping, Airbnb, etc.

Of course, I’m a bit biased because I think that Airbnb management is an incredible business to start up with some huge advantages over the other examples. But today we are going to look into the pros and cons of each of these business models out there.

One of the biggest advantages with Airbnb management is how you can get started with that business without investing any money into renting and furnishing a property. With Amazon FBA (Fulfillment by Amazon), you basically ship inventory for whatever product over to their warehouses, and they take care of the fulfillment. That means you can sell through Amazon, which is really great, and Amazon has made it very easy for sellers to be successful.

But it’s getting very competitive on Amazon, and you also need to have lots of money up front to invest into inventory to send to the warehouses. You need a lot of capital to start, and then you’re relying on the business to succeed and the profit to repay that initial investment. There’s a lot of risk involved there. For a lifestyle business, it doesn’t offer you a lot of financial freedom, because you’re using a lot of your profit to reinvest in the business, so it isn’t going to you personally for your spending.

That’s one of the reasons even within the Airbnb management business, I recommend against rental arbitrage. When you go the rental management route where you’re collecting a percentage fee every month, that’s a huge upside because you are actually earning the money you are making up front, without having to pay off your initial investment and saving the profit to reinvest going forward.

With Airbnb management compared with Shopify drop shipping or Amazon FBA, you can see a recurring monthly income. With just a few clients, you can be seeing $10,000 a month. All you need is a couple of clients to be getting consistent monthly income and hit your profit goals for your business. With drop shipping, you’re relying on large numbers of sales in a mass market, because your profit margin is quite small for each item you’re selling.

Plus, they are one time purchases, meaning that your sales this month isn’t going to translate to your sales next month. That makes it hard to look 6 months into the future and know how each of your product is going to perform. With Airbnb management, though, if you have 5 properties, you will already know what income you’re going to be bringing in 6 months from now.

Thinking of competition, if you’re using Amazon FBA, you’re competing with some really powerful and established businesses, and in reality, you’re even competing with Amazon itself. With Airbnb management, who are you competing against? The majority of the market is made up by hosts that are hosting their own property, and they aren’t really doing a good job. So most of your competition is people who don’t really know what they’re doing when it comes to guest attraction, they’re amateurs.

So there’s very little competition in this space right now. When you have a business model where you are offering real value to your clients, that is a reliable model that can be successful long-term. You’re saving your client valuable time, and you’re helping them earn more money from their property because we are optimizing their performance. If you’re interested in seeing what the step-by-step process is to build a successful Airbnb management business, make sure to check out the free training below.