If you’re on the hunt for ways to launch an online business without a big upfront investment, affiliate marketing and dropshipping stand out as two top contenders. Both offer a way to get started without making or storing your own products, but each one takes a different route when it comes to how you earn money online. For beginners, deciding which one fits your goals and skills best can be confusing.
Affiliate marketing revolves around sharing and recommending products from other companies. You earn a cut of the sale when someone purchases through your special link. In contrast, dropshipping lets you set up a digital store to sell products you never physically touch; a supplier handles the storage and shipping, allowing you to focus on marketing and customer interaction.
If you’re uncertain about which route to follow, I’ll guide you through the crucial differences, key benefits, downsides, and what kind of revenue is actually possible. We’ll also tackle some frequently asked questions about difficulty levels, earning possibilities, and clear up just how real those YouTube $10,000/month claims are.
Affiliate Marketing vs Dropshipping: At a Glance
- Affiliate marketing: Recommend products using unique links and earn commission on successful sales. No customer support or inventory management.
- Dropshipping: Launch an online store to sell products shipped directly by a supplier. You’re responsible for sales, support, and handling returns.
Affiliate Marketing Explained
Affiliate marketing works by teaming up with companies to highlight and promote their offers. You’re given a special tracking link; when people click and buy, you pocket a pre-set percentage. Amazon Associates, ShareASale, CJ Affiliate, and Impact are some popular affiliate networks where you can find offers to promote.
Who is Affiliate Marketing Good For?
- Bloggers, YouTubers, or anyone who has or wants to build an audience
- People who enjoy creating content, search engine optimization (SEO), or social media
- Those not interested in managing customer support, returns, or logistics
Pros & Cons of Affiliate Marketing
Pros:
- Zero inventory or shipping hassles
- Scalable if you grow a large audience
- Minimal startup costs—mainly hosting, a website, or a social account
- Possibility for passive income once your content library expands
Cons:
- Less control; if an affiliate program ends, the income stops too
- Some commissions are small (physical goods may pay as little as 1-5%)
- Payment can be slow (30-90 days after sale)
- Ongoing need for audience and traffic growth
Dropshipping Explained
Dropshipping means creating an online storefront where you feature and sell products that are shipped directly from a supplier to your customer. Popular platforms include Shopify and WooCommerce, with well-known product sources like Oberlo and AliExpress helping you find inventory to offer.
Who is Dropshipping Good For?
- Entrepreneurs eager to build and brand their own online store
- People who want more authority over choosing and pricing products
- Anyone ready to experiment with paid ads, creative marketing, and store promotion
Pros & Cons of Dropshipping
Pros:
- No storage or warehouse expenses
- Broad product selection—easy to test “trending” or seasonal items
- Complete control over branding and customer touchpoints
- Potential for higher profits on each sale compared to typical affiliate commission rates
Cons:
- You’re in charge of customer service and handling returns
- Managing product quality and possible shipping delays
- Margins may be slim after you factor in ad costs and service fees
- More direct competition and risk of other stores copying your products or marketing
Comparing Key Aspects: Affiliate Marketing vs Dropshipping
- Starting Out
Affiliate marketing is straightforward to kick off. Most affiliate programs require little more than a basic blog, website, or even a social media presence. Applications are usually approved within days and you can start sharing links almost immediately.
Dropshipping takes a bit more initial effort. You’ll need to build a webstore, select products, set up payment systems, and write up your shipping and returns policy.
Which is easier? Affiliate marketing is generally simpler for beginners, with fewer things to set up and less risk to worry about. - Risk Level
Affiliate marketing involves almost zero financial risk. Inventory isn’t a concern, so your only costs might be a domain name or website hosting.
Dropshipping carries more risk—if products don’t sell, you still have to pay for store hosting, apps, marketing, and any branded assets. - Time Commitment
Affiliate marketing is front-loaded with work. You create evergreen content, and that content can pay off for years, earning commissions on autopilot.
Dropshipping is more hands-on day-to-day. You’ll spend lots of time running ads, adding and removing products, and helping customers. It’s less passive than it sounds. - Earning Potential
Affiliate commissions usually sit between a few percent (like on Amazon products) and as high as 30-50% for things like digital courses and online services.
Dropshipping margins range widely, but after ad spend, many stores net 10-30%. Each sale could earn more than the average affiliate payout, but operating costs might reduce your actual profit. - Long-Term Prospects
Affiliate marketing is a winning long-term play if you build evergreen content and stick to high-quality programs.
Dropshipping stores can perform well long-term if you build a trusted brand and deliver good customer experiences. Trends come and go, though, so adaptability is crucial and competition is fierce.
Common Beginner Questions
Is Dropshipping or Affiliate Marketing Easier?
Most beginners find affiliate marketing easier to get into. You just need a website and regular traffic; the learning curve is less steep. Dropshipping requires managing customers, marketing, and shipping, so there’s more to juggle from day one.
Is Dropshipping Worth It for Beginners?
Dropshipping can absolutely work—especially if you enjoy hands-on business and digital marketing. The caveat is startup costs can add up through store subscriptions, advertising, and apps. It’s best to start on a small scale and avoid heavy spending until you’ve learned the ropes.
Can You Make $100 a Day with Affiliate Marketing?
Making $100 per day is possible, but it usually doesn’t happen overnight. Most will need well-ranked blog posts or YouTube content, consistent traffic, and to choose programs that pay enough per sale. Many people see a trickle of commission in the first several months, but reaching $100/day often takes half a year or more with smart effort and good niches.
How to Make $10,000 Per Month with Affiliate Marketing?
Consistently earning $10,000/month means publishing standout content, targeting higher-paying or recurring commission programs, and building a sizable, loyal audience. SEO, email marketing, and choosing proven topics are critical. It’s a marathon, not a sprint—with plenty of hardcore dedication needed. See stories like Authority Hacker for examples of how it can pay off.
5-Year Earning Projections: Affiliate Marketing vs Dropshipping
| Year | Affiliate Marketing* | Dropshipping* |
|---|---|---|
| Year 1 | $500 – $5,000 | $1,000 – $10,000 |
| Year 2 | $2,000 – $10,000 | $5,000 – $30,000 |
| Year 3 | $5,000 – $30,000 | $10,000 – $60,000 |
| Year 4 | $10,000 – $50,000 | $20,000 – $120,000 |
| Year 5 | $15,000 – $100,000+ | $30,000 – $200,000+ |
*These are rough starting points and average estimates for beginners who consistently build on their business year after year. Your results may vary by effort, industry, skills learned, and market selection. Dropshipping may scale up faster if you’re great with ads; affiliate marketing is steadier and tends to be more passive over time.
Findings
Dropshipping may lead to bigger, faster jumps in revenue for those savvy at ad management and product selection. Affiliate marketing often moves more gradually, but can grow into a sustainable, repeating income stream over time. Both options, given commitment and learning, offer the potential to hit six-figure yearly incomes.
Affiliate Marketing or Dropshipping: Which Should You Try?
Either approach can pave the way for a genuine online business without massive upfront costs, staffing, or storage needs. Affiliate marketing attracts people who want a more hands-off income stream and like to build things slowly through content. Dropshipping appeals more to those who like hustling with marketing, enjoy branding projects, and want the thrill of running an actual online shop.
Ultimately, think about your own skills, interests, and how much time and money you’re willing to put in before seeing results. If you want control and don’t mind customer issues, dropshipping may be a match. If you prefer promoting products for others and keeping direct customer drama to a minimum, affiliate marketing might be the chill path forward.
If you’re still deciding, affiliate marketing often wins as the most budget-friendly way to get started. Once you’re comfortable, you can always mix things up by adding dropshipping to your portfolio. Either choice, consistency, and a commitment to keep learning will make a difference and help you build something legit.
Have you given either a shot? Curious about anything else before you start? Share your thoughts below—I’m happy to assist!