If you are interested in making money online, dropshipping and affiliate marketing are the two ways you can make money without engaging in active remote work. Both of these are scalable to an extent and have minimal starting risk. But which one makes more money?
Affiliate marketers can make more money in the long run because affiliate marketing is infinitely scalable. In contrast, dropshippers can make money more quickly because they can access the inherent traffic of other platforms.
Here are the main differences between dropshipping and affiliate marketing:
Stock risk: Absent
Upfront investment: Advertising
Greatest Advantage: Can start earning in the short-term
Greatest Drawback: Not infinitely scalable
Your value: Finding undervalued products and bringing them to those who value them more
Stock risk: Absent
Upfront investment: Effort (building an audience)
Greatest Advantage: Is 100% automated
Greatest Drawback: Takes a long time to make substantial income
Your value: Generating traffic for a relevant product
In this article, you will learn more about these income-generating methods and their respective pros and cons. By the end of this post, you'll know which one is right for you.
Let's get started.
Dropshipping: A Brief Overview
Dropshipping is a business model where you don't store the inventory but take orders for it. After you receive an order, you purchase the product at a lower cost and then forward it to your customer's address.
Dropshipping is like playing an online middleman who gets paid for finding amazing products at lower prices and shipping them at higher prices.
Pros of dropshipping:
Cons of dropshipping:
Affiliate Marketing: A Brief Overview
Affiliate marketing is a discipline where you monetize your traffic or audience by funneling it to a landing page that sells a third-party product. You get a percentage of the total sales volume, and the manufacturer gets the rest.
For this, you need to affiliate with a business that has a product that is relevant to your audience and a bonafide affiliate program. Without a program that tracks conversion and traffic sources, you cannot get an honest return on your efforts as an affiliate marketer.
Pros of affiliate marketing:
Cons of affiliate marketing:
Affiliate Marketing vs. Dropshipping: Which One Should You Choose?
You should pick dropshipping if you want to make money in the short term. On the other hand, if you want a full-time income online, you should build an audience and start affiliate marketing. It will take some time, but with the right partners, you'll be able to make more money.
Not ready to be done learning about sales funnels? Check out these 8 Steps to Build a Sales Funnel for Affiliate Marketing.