Dropshipping Vs Affiliate Marketing- Who is the Winner

Starting your own business can be daunting. In fact, consider the capital and the amount of work that is behind every business. However, there are two kinds of low-risk business models that you should pay close attention to. These business models are becoming popular especially to online entrepreneurs. Dropshipping and affiliate marketing are fast growing in popularity mainly because of its potential high returns, not to mention the hands-off approach when it comes to its inventory and shipping requirements.

Before you make up your mind, we’ll be discussing both in detail. You will figure out both the pros and the cons and what makes both a great opportunity for anyone planning to build another stream of income.

What is Affiliate Marketing?

affiliate marketing

Affiliate marketing is a commission based business model. This allows you to get a commission from online recommendations that you make for a certain product or service. This means that you don’t have any control when it comes to the pricing of a particular product.

What makes affiliate marketing a great option is the fact that you don’t have to worry about any fee. In fact, you just have to be creative how you are going to convince people to buy a particular product. It can be using a YouTube channel or it can also be via using your own website. In fact, you can even use your social media account.

What Makes Affiliate Marketing a Good?

Affiliate marketing can be considered a great source of passive income. There can be a bit of upfront cost since you will have to figure out exactly how you can generate traffic on your own channels. However, once your content starts to convert, then you can already sit back and just watch the cash flow into your bank account.

You also don’t have to worry about customer support. Consider affiliate marketing as a modern word of mouth advertising wherein you convinced another individual to try a particular product or service. It also means that anyone can actually be an affiliate marketer. You don’t even have to be an expert in order to claim that you are satisfied with a product. It can be your own personal opinion about a particular product that can drive sales.

And lastly, there are many brands that are running an affiliate marketing program for their products and services. This means that you can choose the product that is appropriate for your audience.

Affiliate Marketing Cons?

But of course, you also have to recognize that there are some things that you will also need to consider before you dip your feet into affiliate marketing for good. For one, you have to consider the fact that you are not getting the entire profits from a particular product that you advertised. Since you are just getting paid in commission, you have to consider the price of the item and the percentage that goes to you.

For example, if you are recommending a $100 product and you get a 10% commission, that means that you only make $10 regardless of the cost of your marketing efforts. If you want to make serious money as an affiliate marketer, be sure that you can sell in large volumes using your channel. Also, keep in mind that you have no power over the price of the item. This means that if the seller decides to drop the price, then your cut goes down as well.

Also, you should expect payments to be delayed. Payment deposits may take a while before it goes to your account. Also, if the company that you’ve chosen opted to declare bankruptcy while you haven’t received your commission yet, then you may actually lose your hard earned money.

You also have to consider the fact that some people don’t have any plans of buying anything. Sometimes, they’d just hover on your link thinking that it costs more to buy using your link because you get to receive a commission. What they’ll do is to just go to the website manually and buy from there. In this case, you don’t get anything.

And lastly, you have to consider your ability to create content. Without content, affiliate marketing doesn’t exactly work to its full potential. Whether you choose to have a YouTube channel or have a blog, it is important to still put content as number one priority in order to get the best results from affiliate marketing.

What is Dropshipping?


When it comes to dropshipping, you don’t carry goods and you don’t ship them as well just like in affiliate marketing. Dropshipping model involves manufacturers carrying the inventory and then selling the products to respective customers. However, in dropshipping, you set your own price.

What Makes Dropshipping Good?

One of the best things about Dropshipping is that you get paid on time. You don’t have to worry about payments that don’t get to your account on time. Instead, it reaches you every week.

Next, you get to dictate the price of the items. For instance, you can buy a particular product for $1 and even price it for $10. And yes, you get all the profits that you have made from this. With dropshipping, you can have your own website dedicated to selling products.

Dropshipping Cons?

affiliate marketing

But of course, you also have to consider the cons. The fact that you are selling an item, you will need to have your own customer support. The good news though is that you can easily outsource customer support to someone else.

Final Verdict

Planning to generate another stream of income that carries a relatively low risk? Is it a good idea to be a dropshipper or an affiliate marketer?

You have to think of your goals before you choose from the two options. If your goal is to just make extra cash with a high traffic website or with your YouTube channel, then perhaps, you want to be an affiliate marketer.

On the other hand, if your goal is to make a good amount of money online, then there is no question that you want to be a dropshipper. This allows you to have full control of your business. However, as an entrepreneur, you will have to make sure that you prioritize customer support.

Like to hear from you, which model you prefer? Welcome you to drop your comment below. Thanks

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