Dropshipping is not easier than affiliate marketing because it involves complex processes. It deals with product selection, supplier negotiation, and customer relationship management. As a dropshipper, your job doesn't end at finding and promoting products like affiliate marketing. You must create and manage an online store and run ads. Shopify or WooCommerce are some platforms to sell your curated product range. In affiliate marketing, you focus solely on product promotion. You do this through channels like social media, blogs, and email marketing. You find products you promote from affiliate programs like ClickBank or Amazon Associates.

You also face intense competition from thousands of other dropshippers. Google Trends says there is a 156% increase in search volume for dropshipping. More and more competitors are entering every day. And Tech Report revealed that dropshipping has a 90% failure rate. Meanwhile, affiliate marketing is a top option for brands. Authority Hacker reported 81% of brands rely on affiliates for increased sales and brand awareness. That said, the majority of affiliates are earning below the US poverty line. According to WP Beginner, 57.5% of them earn less than $10,000 per year.

I've done both dropshipping on Shopify and affiliate marketing. I was able to make 6 figures with both business models. Based on my experience, both models have their own strengths and disadvantages. In this article, we'll discuss the similarities and differences between dropshipping and affiliate marketing. We'll cover which requires the least business know-how and their hardest part.

What Is Dropshipping?

Dropshipping is an e-commerce business model where store owners take customer orders without owning inventory. Dropshippers rely on third-party suppliers to deliver the products to customers. Dropshipping doesn't require a ton of investment capital. You only need to have enough money to test a few products. Then, when you find a winner, you can scale using paid ads or organic content like viral videos on TikTok. According to Grand View Research, dropshipping fashion niche is expected to grow at 24.9% per year. This suggests a good potential for aspiring dropshippers looking for a profitable niche.

What Is Affiliate Marketing?

Affiliate marketing is a digital marketing strategy where affiliates or publishers work with brands and promote products or services. Affiliates get commissions for every action a person takes on their affiliate links. This could be a download, subscription, sign-up or purchase. Then, the commissions can be a flat fee, by rate or recurring commission. Affiliates don't own inventory or deal with customer service issues. This makes affiliate marketing easier than dropshipping. Affiliate marketing also requires less investment and effort. An affiliate's only job is to advertise offers and get the sale.

However, the model has a lower profit margin than other online business models. Especially if you don't know how to get attention from the right people. The key is to secure a loyal audience. Then build trust with your ideal buyer so they'll act on your offers.

What Are the Similarities Between Affiliate Marketing and Dropshipping?

The similarities between affiliate marketing and dropshipping are the low startup cost and low risk. They're marketing-based models that don't need you to own physical products. So you can start with low capital, but are highly competitive. Both require attention to be profitable. So, you need to know how to drive a ton of eyeballs to your product or offer. Other similarities between affiliate marketing business and dropshipping include the following:

You can do affiliate marketing and dropshipping together since they need the same relevant skills. Market research, PPC and SEO are skills that will help you succeed in both businesses. And doing both won’t break the bank since they’re low cost. But it’s advisable to start one and be profitable, before diversifying your income.

What Is the Main Difference Between Affiliate Marketing and Dropshipping?

The main difference between dropshipping and affiliate marketing is their financial structure. Dropshipping is a profit-based business. You make money by selling things people want to buy in your dropshipping store. Dropshippers control the price tag and the products they sell. But you deal with physical products, customer service, inventory management, and shipping times. 

Affiliate marketing is a commission-based business model. As an affiliate, you promote goods or services from the affiliate marketing program. Then, you earn a commission for every sale you make. There are fewer moving pieces with affiliate marketing than with dropshipping.  An affiliate marketer doesn't need to worry about customer support or supply chain issues. Instead, their only job is to drive traffic to their affiliate links and make the sale.

Here are more differences between dropshipping and affiliate marketing:

Dropshipping vs Affiliate Marketing: Which is More Profitable?

Dropshipping is more profitable than affiliate marketing because you control how much you charge for your product. As a dropshipper, you choose what things you sell and the marketing approach you use to promote them. Repricer says that nearly 23% of all online sales are fulfilled through dropshipping. Dropshipping also creates a valuable asset. Unlike affiliate marketing, you have a physical product. Once you have a proven concept and are making $10K/month in sales, you can brand your store. Or you can sell your Shopify dropshipping business for millions of dollars.

But with affiliate marketing, you don't own an asset, and the customer belongs to the affiliate network. Affiliates rely on the program to set commission rates and dictate their creatives. They also can't leverage return buyers or recurring sales. Instead, the consumer goes back to the network. Studies state that 16% of online orders in the US come through affiliate marketing in 2024.

Dropshipping vs Affiliate Marketing: Which Offer a Better Work/Life Balance?

Affiliate marketing offers a better work/life balance than dropshipping. You don't need to deal with customer service issues as an affiliate. There's no need to build an online store or source winning products to stay competitive. Affiliate marketers need to build an online audience that actively consumes their content. Then, you can get clicks on your affiliate links even when you're not working on your website, social media page, or YouTube channel.

Affiliate marketers need to invest considerable time to build trust on your content. Be ready to publish text or videos every single day for months or even years. Depending on the niche and level of competition in your market, it can take around 6-12 months. It can also take 12-24 months before you make enough money to quit your 9-5. But once you have an audience, you can make a passive income. As an affiliate, you can leverage AI tools like ChatGPT. You can also reformat content for multiple platforms to increase your internet presence.

As a dropshipper, you need to stay one step ahead of trends. Find new products people want to buy now to sell in your online store to remain relevant. Dropshippers can earn money in as little as 3-6 months, but it isn't passive. The dropshipping business model deals with customer service and inventory management. Dropshippers can use automation software like EcomDash or Oberlo to streamline processes. But they still need to know how to run paid ad campaigns and how to design creatives. So they can get people to stop their mindless scrolling and take action on your product offers.

Dropshipping vs Affiliate Marketing: Which Requires the Least Business Know-How?

Affiliate marketing requires the least business know-how since you don't deal with physical products, suppliers, or running an online store. There are no payment gateways or customer service issues. Instead, you just promote other people's products or services and earn a commission. But both business models require you to know how to get attention from the right people on the Internet. Other factors include things like:

Can You Outsource Affiliate Marketing and Dropshipping?

You can outsource affiliate marketing and dropshipping tasksto save time or scale your business faster. A few popular things to outsource as an affiliate marketer include the following:

A few popular things to outsource as a dropshipper include the following:

Affiliate marketers and dropshippers can hire a VA to take care of things like competitor research, SEO, and marketing. You can find low-cost options for freelancers on sites like Upwork and Fiverr.

What Is the Hardest Part About Dropshipping?

Finding a reliable dropshipping supplier is the hardest part of dropshipping. Research says that 84% of ecommerce retailers said it's their main challenge. One way out of this issue is to source pre-vetted wholesalers. Platforms like CJ Dropshipping, Spocket, or AutoDS are helpful for this.

Another option is to use a sourcing agent from China, such as Supplyia or Skylard. They have numerous contacts and can find the best suppliers for your online business. But, the key is to secure multiple suppliers (ideally 2-3). Then, you omit the risk of running out of inventory, supply chain issues, or slow shipping times.

Is Dropshipping Easier Than Affiliate Marketing? Top Answers From Reddit

Dropshipping is easier than affiliate marketing for some Redditors. This post from a Redditor recommends dropshipping for beginners. They say there are tools to help you find a lucrative dropshipping niche. You can also define your audience, find suppliers, and build your ecommerce store. Some also say that their personal experience with dropshipping was easy going.

However, other Redditors would say that dropshipping is not easier than affiliate marketing. This Redditor shared that affiliate marketing is easier to scale than dropshipping. He added that affiliate marketing allows you to focus your business. And you can leave the customer service to others.

What Is the Hardest Part of Affiliate Marketing?

Building an online audience is the hardest part of affiliate marketing. To make money with the business model, you need to build trust and know how to get attention from your target market. Learn everything you can about your buyer. Here are questions to answer about your buyers are:

• What problems do they have? 
• What questions are they asking?
• Where do they hang out online?

Then, share valuable content that provides the best answer to their questions. As an affiliate, you compete against a global market. You're going up against trusted brands with more money and a loyal audience. This is why only 1.5% of affiliates earn $50k per month, as per by Techreport.

Research suggests that 83% of marketers use affiliate marketing to raise brand recognition. The key is to be relevant. Add value and be authentic. Listen to your readers/viewers. When people feel heard, they feel validated. As a result, they'll be more apt to act on the products or services you suggest.

Is Affiliate Marketing Better Than Dropshipping? 

Affiliate marketing is better than dropshipping if you have an established audience online. Then, you can monetize it with affiliate links to earn passive income. Affiliate marketing is better for people who don't want to deal with customer service. It's also for people who prefer less involvement in the day-to-day operations of the business.

An affiliate marketer depends on the affiliate partner to set the commission rates. The customer belongs to the company, not the affiliate. So, you never own a brand. But you can earn a steady income if you have a great niche and know how to get attention online. And you don't need to always be hunting for the newest product or latest trend.

But if your long-term goal is to make the most money, then dropshipping is the better option. Dropshipping offers higher profit margins because you decide what you sell and how much you charge. Dropshippers can leverage repeat orders, bundles, upsells, and recurring buyers. They have more control over their business and own an asset. Dropshippers can also sell their store for a bigger profit. According to Importify, online stores can sell for $250,000 if you can prove its success.

Factors That Make Dropshipping Easier Than Affiliate Marketing    

Factors That Make Affiliate Marketing Easier Than Dropshipping

Affiliate Dropshipping Meaning

Affiliate dropshipping means leveraging people to act as affiliates for your dropshipping business. The goal of affiliate dropshipping is to increase your revenue and reach bigger audience. You pay an affiliate for every sale they get. But this strategy can get your store more traffic without spending money on paid ads.

It can also increase your conversions and diversify your income stream. Dropshippers can set up an affiliate program for free. They can use software like TapAffiliate, PartnerStack, or BirdEye. Then, find affiliates on comparison websites. Dropshippers can also work with influencers on social media, or connect with content creators in your niche.

Why Local Lead Generation Is Easier Compared to Dropshipping and Affiliate Marketing

The local lead generation is easier compared to dropshipping and affiliate marketing because you own digital assets you have full control over. Unlike affiliate marketing, the clicks and calls belong to you. And unlike dropshipping, with lead generation, you don't rely on a third-party suppliers.

Instead, you build and rank simple websites that target one service in one location. Because the focus is on the local market, you can get your sites to the top of the search engines in as little as six weeks. There are over 41,705 zip codes in the USA. Each one represents a local market with untapped potential.

Once your sites are at the top of the SERPs, they produce leads you can sell to a small business owners. Local lead generation profits can get as high as 85%-90%. Your lead gen property is valuable digital real estate. The website, the tracking number, and the leads belong to you. At the top, it's in front of a ton of people who are actively searching for the service you offer.

Once your sites are ranked, they only need a little maintenance (10-15 hours/year). But there's no limit to how many websites you rank. Each lead generation site has the potential to yield a steady cash flow. If you're looking to start an easy online business with low cost and potential passive income, local lead generation is the best option in 2024.