Honesty Michael
Affiliate marketing and dropshipping are two popular businesses that can earn you money online while being operated from any part of the world. Affiliate marketing can be done without any upfront cost, as all you need to do is promote your link to your audience. On the other hand, Dropshipping requires a startup capital and reliable supplier(s) before you can kickstart properly.
As someone who has tried out both businesses, I can tell you for free that both of them are unique. From the required skillsets to the responsibility involved in making them a success, one cannot deny that affiliate marketing and dropshipping are exceptional in their own right.
Therefore, comparing them would not be an easy task. However, this guide will help you make an informed decision. So read on to learn more.
Key Takeaway
- Affiliate marketing allows you to earn commission from promoting other people’s products.
- Dropshipping gives you complete control and ownership over your business.
- Affiliate marketing is easy to start with free platforms.
- Dropshipping requires capital and a reliable supplier.
Affiliate Marketing vs Dropshipping: Overview
Affiliate marketing is a business model that enables you to promote other people’s products, services, or platforms and earn a certain percentage called commission when you make a sale. It is broad and functions in many ways.
You can either become an affiliate for big brands, mentioning their products in your content, or join free affiliate platforms like StakeCut to promote digital products; either way, you’re engaging in affiliate marketing.
Dropshipping allows you to sell physical products online without handling inventory. All you need is a reliable and trusted supplier for this product that can help you ship the product to the customer once an order comes in.
Furthermore, you can own an online store where you display your products with their price tags, and also send traffic to it.
Affiliate Marketing vs Dropshipping: Pros and Cons
| Business Model | Pros | Cons |
| Affiliate Marketing | No upfront cost Passive income potential Easy to start No customer support worries | Dependence on the affiliate platform Little or no product control No or little negotiations over commission rate Affiliate links can be masked. Payouts may be delayed |
| Dropshipping | No inventory Low startup cost Location independence Brand ownership/control High profit margins You pay yourself | Supplier reliability risk High competition Responsible for customer service Little or no control over order fulfillment or shipping |
Affiliate Marketing vs Dropshipping: Ease Of Start
It is easy to start both affiliate marketing and dropshipping as a business.
For affiliate marketing, all you have to do to get started is search for a trusted platform, product, or service that appeals to your audience and sign up.
Once your sign-up process is finalized, you can start recommending the product, service, or platform to your audience through content creation and attaching your affiliate link so that when they take the desired action, you earn a commission.
Dropshipping, on the other hand, requires that you source a trusted supplier or third-party manufacturer of the product you intend to sell. Reach an agreement on the price and logistics of the product, and then start promoting on e-commerce online stores like Shopify, Amazon, Bumpa, or, better still, on your online store.
Affiliate Marketing vs Dropshipping: Responsibilities
The responsibilities required to run both models successfully are similar. If you’re looking at business models that don’t need inventory, then that leaves you with hands-off models. However, the responsibilities involved are also different.
For affiliate marketing, your most important responsibility is to get your audience to click your affiliate link and take the desired action. In dropshipping, you’re responsible for a range of tasks, including customer service, order processing, marketing, and maintaining your online store.
Affiliate Marketing vs Dropshipping: Required Skills
You cannot succeed with either affiliate marketing or dropshipping without acquiring a specific skillset, especially in today’s digital age, where numerous competitors and a short audience attention span make it challenging.
So, you need sales closing, marketing, SEO, writing, content creation, media buying, and customer service skills, among others.
However, many of these skills may not be required from you if you are an affiliate marketer compared to a dropshipper, because many platforms and brands provide promotional materials upon sign-up.
Affiliate Marketing vs Dropshipping: Profitability
When it comes to profitability, both models are viable. However, dropshipping may be more profitable for affiliates because a dropshipper gets to set the price tag on a product, whereas an affiliate marketer splits the sales they make with the product or platform.
Regardless, they are both profitable. So choose either of them.
Final Verdict
Affiliate marketing and dropshipping are both great ways to earn money online, making it hard to choose which one is better, as they both have great perks.
If you are looking to make money online without any upfront costs, then becoming an affiliate marketer is your best bet. However, if you are looking to build an online store and have full control over it, then dropshipping is the option for you.
Either ways, I advise that you go for the one that suits your preference, matches your strength, and aligns with your long-term goals.