Affiliate Marketing VS Dropshipping: What Should You Be Doing?

There are a lot of ways to make money online and as an entrepreneur starting out your online journey there are two major businesses you might want to jump on. Here, I’d be showing you which to get started with in this Affiliate marketing Vs Dropshipping 2020 article.

Affiliate marketing and Dropshipping are on top of the list as it claims because it is popular and a lot of people tend to lean their way.  This is the case because there are a lot of people promoting how they make big money out of it and also a lot of options that you can choose from.

Since Affiliate Marketing and Dropshipping shipping is on top of our list. We will compare these two and find out which is better and we will also discuss each other’s pros and cons.

By the end of this post, you will be able to find out which will give you a profitable income or which is most suited for you.

affiliate marketing vs dropshipping

What is Affiliate Marketing?

A type of business where you promote a product and earn when you refer sales like a commission basis depending on the company’s policy. This is basically finding a niche that can appeal to people and make money from commissions or percent from the sales whenever a sale is made.

It also includes the promotion of different links of the products from a review on your site that your audience can see and possibly click on it and they will buy the product.

The products from affiliate products could be anything from fitness supplements to the software.

What is Dropshipping?

Another type of online business where you put up a site where you choose products to sell but instead of having to do the process of shipping and other processes by yourself. You became a middleman of the buyer and the manufacturer.

You’re responsible for taking orders and handling the payment process as well as customer service as your manufacturer is the one responsible to ship the product to your customer.

You don’t need to have an inventory and a warehouse for your products. You have the freedom to set your own product price and this will make you earn more.

Similarities of Affiliate Marketing and Dropshipping

These two have similarities that make them on top of our list when it comes to making money online.

First of, all you don’t need a lot of money to start this business as you just need a good company for affiliate marketing and good e-commerce software for dropshipping. Both of them have high earning potential points as an affiliate program can give you high commissions based on your referrals and traffic that you produce from your links while for dropshipping you earn more as you basically control the prices of the products you offer.

Since both of them are done online you can create ads, landing pages, and drives traffic. Lastly, you are just responsible for marketing products to an audience that you can control through your hard work and dedication to your business needs.

affiliate marketing vs dropshipping

Pros of Affiliate Marketing

If you choose affiliate marketing as your online business you don’t need to worry about its costs. You don’t need a lot of money, to begin with as affiliate companies don’t require much especially when you are starting.

You don’t need to set up a store to be an affiliate as you just need to put up a site with your reviews about the company’s products and make links and other marketing strategies to build up an audience and drive traffic.

Fulfillment of orders and stock issues won’t be a problem as the product you promote isn’t usually physical and no need to deal with customer service or support.

The payment for affiliate marketing is automated and that’s why this kind of business model is passive as you don’t need much to do anything and just focus on campaigns and marketing stuff.

The best way about affiliate marketing is that you can control the brands that you want to work with.

Cons of Affiliate Marketing

If Affiliate Marketing has a lot of benefits, it also has a negative side.

You don’t have the ability to own the customer that is why you need to have constant engagement with them.

Your site also needs to produce a lot of traffic by having marketing campaigns that will cost you money. This type of business only relies on commissions that you can’t have control of as people can go directly to the product’s site instead of your links.

Lastly, as this field is booming you can expect a lot of competitions and you need to work hard like them.

affiliate marketing vs dropshipping

Pros of Dropshipping

The benefits of Dropshipping is that you can navigate with your choice of products and not just stick to one niche.

You have full control of your price list and can be able to build your own brand as you are not just promoting one product.

As you have basically the full ownership of your customer information, you can retarget them and entice them to buy more of your other products by sending them promotional discounts or coupons.

You have your own site and brand you can also be able to build your own affiliate program so it is like having your own affiliate marketing inside your dropshipping business.

Lastly, you don’t need to worry about spending money on inventory and warehouse as you don’t need to keep personally the products to sell and let your supplier and manufacturer handle those stuff.

Cons of Dropshipping

One of the major issues of Dropshipping is that it’s hard to find a genuine supplier or manufacturer. It will also need a lot of trial and error when it comes to selling products as you need to pick a product that will earn you more money.

Customer support can be a headache as you will be dealing with a lot of problems when it comes to shipping and customer complaints and product demand.

Dropshipping is costly to set-up and can be difficult to manage.

Which is better Affiliate Marketing vs Dropshipping?

Both online businesses have had their advantages and disadvantages that are very common to all businesses.

It is your personal preference what to choose what kind of business you want and what interests you the most. It is very important too that before putting up one, you need to learn everything about it and be knowledgable about the current trends to help you build your business.

If you want a business that can make you money immediately then choose Dropshipping but if you preferred to have a more passive business that can generate income for years to come then Affiliate Marketing is for you.

If I get to choose between the two of these online businesses, I will choose both! I think it is much better to have both of them, it could be hard work but there is nothing wrong with trying both of them to know it better.

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