Digital Marketing

Affiliate Marketing vs Dropshipping: Which Is More Profitable?

Did you know people are making money online simply by answering a few emails and sometimes without even having to turn on their computers?

Yes, any lists on ways to make money from home always have two options within their top 5, affiliate marketing and dropshipping. And with good reason. The global market size of dropshipping alone in 2019 was $122.3 billion!

With that much money out there, it is understandable that you may want a piece of the pie. But which one pays more?

Well, read on to find out the definitive answer of affiliate marketing vs dropshipping today, and much more.

What Is Affiliate Marketing?

The affiliate marketing model is the epitome of passive income.

Simply put, you promote a product or service either directly or indirectly, and get a cut if the promotion leads to a sale. People often start because they use the product, love it, and want to promote it on their blog or Youtube channel, because they look for items to blog about, or they have been approached by a company due to their already large social media presence.

When people follow the link you provide, they get sent to a separate eCommerce website. You will generally receive 10% of every sale, depending on which affiliate program you join.

What Is Dropshipping?

A dropshipping business, although still totally virtual, operates a little differently.

Someone who dropships finds a manufacturer and creates their own online eCommerce store. They then promote the product and when a purchase is made, they then inform the manufacturer, pay them, and the manufacturer deals with the rest.

Working as a middle man, you won’t need to handle products, just the admin side of keeping your customers happy.

Affiliate Marketing vs Dropshipping: Which One Brings in More Cash?

Before choosing between affiliate marketing vs dropshipping, it is important to know the pros and cons.

So which one has the potential to leave you with more money in your pocket? Well, there is a clear winner.

Dropshipping.

A dropshipping business is scalable because you decide on the final price to the consumer. Whether you are selling pens or electronics, once you learn how to start a dropshipping business, you can slap on as much on top as you want, while still keeping the prices competitive.

But added profits do come with added responsibility.

Late deliveries, customer queries, and support issues all need to be handled by you, meaning that it requires a more hands-on approach.

In addition, you are only as good as the quality of your products. If you’re onto a winner, you will have return customers. On the other hand, if you get it wrong you could be in for a long ride.

There are advantages to affiliate marketing too. The hands-off approach means that all you need to do is produce content. Once online, as long as the product is available, you have the potential to continue earning profits long into the future.

The challenge is getting eyes on your content in the first place. Most affiliate marketers rely heavily on SEO, meaning that you need to be savvy with digital marketing to an extent. If you add into the mix the fact that some affiliate marketing programs change how much they payout and can pay out late, you realize that you are never really in control of how much you will earn at any given time.

The Choice Is Yours!

So when sizing up affiliate marketing vs dropshipping can you see a clear winner?

Much depends on your niche, set of circumstances, and interests. But one thing is clear. Both are a great way of earning that extra bit of cash that we all appreciate at the end of the month.

We hope our guide was able to help you decide about these exciting new business areas. If you are interested in learning more, please check out the other great content on our site!

Flame Of Trend

Flameoftrend is the world’s largest, most popular trend community. We leverage big data, human researchers to identify consumer insights and deep dive opportunities for the world’s most innovative companies, with our research.

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