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Affiliate Marketing vs Dropshipping: Which is More Profitable To Earn Money Online?

August 13, 2020
drop shipping vs affiliate marketing

There are thousands of websites, online platforms to earn money. Many companies have their own e-commerce websites for selling their own products and services. Speaking of affiliate marketing and dropshipping, in both business models, we are not responsible for product shipping and product quality however we are responsible for whole marketing and other promotional processes. Now, let’s dive more for these two models:

Affiliate Marketing:

Affiliate marketing is the type of marketing where we get paid for selling other people’s products. Let’s just say, if the seller earns a customer from our marketing skills, they will pay a fixed amount to us. let’s take a pen, for example, company “A” sells pens and we promote it as an affiliate when customers buy it, the fixed percentage is given to us. Like if it has fixed commission sale of 10% then after the completion of sales, we get 10% of the sale.

Advantages:

  • easy to support
  • no customer support needed
  • a great way for passive income

Disadvantages:

  • fixed commissions
  • our affiliate can be removed
  • payments are not always on time

Now, before we move on to an explanation of what is Dropshipping, here’s a quick recap of what affiliate marketing is:

  • Promote Other People’s Products
  • We Do Not Process Orders
  • We Do Not Handle Customer Service
  • We Earn Commission Based on Sales

Drop Shipping:

Drop shipping is a business model where we sell products online, but we don’t need to pre-purchase the items sold or keep them in stock. In this type of e-commerce, drop shipping site owners process orders and send them directly to the manufacturer, who then ships the products directly to the customer.

Advantages:

  • immediate payout
  • chance to earn more
  • more chances to get customers attention back

Disadvantages:

  • need to manage customer support
  • little control over shipping
  • smaller target audience, mainly impulse shoppers

In a recap, in dropshipping:

  • We Promote Other People’s Products
  • We Process Orders
  • We Handle the Customer Service
  • We Earn Profits on Each Sale

While reviewing both business models both can be used for earning a significant income but requires some efforts.

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