How to make money from Affiliate Marketing vs Dropshipping (with Aliexpress) – Which Online Business Method Is Best?


How to make money from Affiliate Marketing vs Dropshipping (with Aliexpress) – Which Online Business Method Is Best?

Which is better, affiliate marketing or dropshipping? Which makes the most money? Find out!
►► Free Webinar! $1,000/Day with Affiliate Marketing: http://wholesaleted.com/go/passivewebinar
►► Free Ebook – 6 Steps of a 6 Figure Dropshipping Store: http://wholesaleted.com/4-step

***OTHER LINKS DISCUSSED IN THIS VIDEO***

How We Make $500/Day With Affiliate Marketing: https://www.youtube.com/watch?v=-EJkasSgiTs
How to Make $1 Million Dollars in a Year: https://www.youtube.com/watch?v=7AhrpqKgS2o

What is Affiliate Marketing? How Do You Make Money with Affiliate Marketing?

In this business model, your goal is to refer customers/clients to another business. If they purchase their products/services, you make a commission on the sale. The way that these businesses track your sales is with something called a hoplink. When a customer clicks on this hoplink and then purchases an item, you get credited with the sale.

What is Dropshipping (with Aliexpress)? How Do You Make Money with Dropshipping?

Dropshipping (with Aliexpress) is when you go to Aliexpress and find low-cost items to list in your own online store (e.g. you can make a store with Shopify) with a mark-up price. You then run Facebook ads to the products in your store promoting them. When a customer buys an item in your store, you then go to Aliexpress and order the item for them. You keep the difference in profit.

Question 1: Which Is Easiest for Beginners – Affiliate Marketing or Dropshipping?

There is no clear winner when it comes to this question: both business models have their own advantages and disadvantages.

With affiliate marketing, it has the advantage that your affiliate merchant partner is likely established and has built up trust online. That means that if you refer a potential customer to them, that the conversion rates will be higher because they are more likely to feel comfortable purchasing from them – unlike with dropshipping where as a fresh store, you don’t have built up credibility.

On the other hand, with dropshipping, your store is usually in a less saturated market for Facebook ads. For big, profitable affiliate products, a lot of affiliates will be trying to run Facebook ads directly to the offers, making traffic expensive and competitive. In addition, you have larger profit margins to work with when dropshipping, which also helps make it easier to create profitable Facebook ads. This is very relevant as Facebook ads are probably the easiest source of traffic for beginners.

Question 2: What Makes the Most Money? Affiliate Marketing or Dropshipping?

Dropshipping has the highest potential to make money. The reason for this is that when you create a store and sell products in it, you are building up a list of buyers that you know are interested in the products that you sell. So if you have a store selling products related to Astrology, then you know that people who purchase items in your store are interested in products related to Astrology – and you can send out emails to them in the future promoting similar products, and make more sales/money.

With affiliate marketing, you are helping your merchant build a list – NOT you. And they will take the buyers that you send them, and they will send them a lot of emails promoting more of their products. With affiliate marketing, you are making one-off sales.

Question 3: Which is the Most Passive? Affiliate Marketing or Dropshipping?

Affiliate Marketing is a more passive business model than dropshipping. The reason for that is while you can semi-automate a dropshipping store, you still need to manage and fulfill orders. When a customer comes to your store and purchases an item, you need to go to Aliexpress, order the item and then get it shipped out to your customer. This is called order fulfillment. You also need to do customer support and reply to emails and messages left by customers. You can in-time make your business a lot more passive by hiring staff to run it for you, though you will need to manage those staff members.

But with affiliate marketing, you don’t do any of this – the merchant partner does this for you. THEY send the products out to the customers, THEY fulfill the orders and THEY answer customer emails. As long as you have a traffic source setup that is sending referrals to the merchant, the business will run on autopilot.

So which is better? The answer is neither: they both have their own pros and cons. Choose the business model that is right for you.

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42 Comments

  • Dropshipping vs. affiliate marketing vs. Amazon FBA vs. all sorts of other online-based digital models… which one is for YOU?

  • 16M VIEWS says:

    And is it possible to advertise affiliate links on facebook

  • Ali Abeedoun says:

    Hi Sarah thanks 🙂

  • Ali Abeedoun says:

    What’s the backstory behind your channel name ”Wholesale Ted” ?

  • Ali Abeedoun says:

    You can build a niche store and sell affiliate programs in the blog too

  • Wholesale ted you are very helpful.

  • FabiaN says:

    Hey Sarah! Great video, but in affiliate marketing you get your customers information, since you direct the traffic to your landing page where they submit their information.
    Have a nice day. 🙂

  • Hi Ted crew/people:
    I hope I'm gonna make this question simple and not confusion!
    I've been through a handful of your vids, tips for beginners and Whatmore.
    However, I noticed in one video Sarah shows two products against each other and pointed out which would sell and why.
    I have 2 questions for this:

    Q1: She mentioned that a pale all-white hat was 'boring' and something you can just buy in a local store.
    My question; well, can't you just put an emoji or some artwork on the hat – AND can you customize your selling products??

    Q2: Would you ever ask the audience what they want, as suppose to, testing and using/wasting money on a handful of products?

  • Jimmy Jerk says:

    Which business model is bist??? 😄

  • Both are better than 9-5

  • MNBLUCKY says:

    your videos are very helpful and very well explained!! thanks 🙌

  • m m says:

    Hi we need that u translate that for arabic language.me be someone how can talk arabic can help.plz we wait for arabic tradiction

  • Tim Kline says:

    I'm interested in the webinar, but not available at those times. If I sign up, will I be able to download it from the webinar site? or stream it through there like a regular youtube video?

  • Do you believe before starting drop shipping should someone take a course to learn the basics or can it be found easily on youtube for free?
    Thanks for the great vids

  • Manish Singh says:

    what is your review about 1and1 hosting company for hosting

  • No se crean este tipo de video amigos, lo plantean como si fuece facil y da muchas ganancias, pero no. Solo quieren que compres sus cursos donde ellos verdaderamente hacen mucho dinero. Al igual que muchos canales de youtube

  • WIll you please next time talk/speak slowly?, I can't follow reading you, thank you

  • Taha Mansoor says:

    Sarah please make a video about how to do cash on delivery payments for a dropshipping store on shopify. Do I use DHL or UPS? I live in Pakistan

  • Great video! I have question, is it possible to do both models at the same time?

  • ZillasCoop says:

    I tried to find an email address to contact you discreetly about the webinar but could not find one here or at your website… tried to do the webinar, significant audio issues, website kept cutting out at crucial moments got the point i had no idea what he was talking about – sounded like he was talking about website building? and bad images.. not sure how he got to that from the last I was able to hear. Was making no sense at all.

  • Sorry but I have to unsub – just did that Affiliate Marketing Webinar and that was the sleaziest 90minute ad for a course I've ever had to sit through #PUKE

  • Jason Holmes says:

    How would I talk to someone about receiving your free book? I've tried several times but have yet to receive it.

  • RS Tech says:

    CLICKBANK :- This product is for affiliate marketing. Is a very GOOD product I need some bucks Can you help me buy this product ..
    Plzzz Click this linkhttps://bit.ly/2lrhc2q

  • subin babu says:

    NEW OFFER GRAB THIS! BEFORE ENDS, Get 25% discount on alidropship plugin http://bit.ly/2s8Dry0

  • The Hunter says:

    Hello Wholesale Ted, I would love to get a webshop, but i would also like too have holidays, is that possible with a Shopify store

  • Mike Jones says:

    another great informative video thanks for sharing

  • BossTech says:

    Hey Sarah! You might remember me from your review of my store: http://www.thewatchdestination.com, about a month ago. I just wanted to say thank you! It was extremely helpful to see your perspective. I've decided I want to try selling some more "random" items (i.e. items that are trending and using FB advertising to attract some sales). Do you think I can use the same website (The Watch Destination) for those products despite the fact that the domain would seem a bit random to potential customers? Thanks! (Anyone is free to answer.)

  • Chris Lynch says:

    I know my my comment isn’t about dropshipping, but this girl is the cutest girl I have ever seen 😅

  • Kingsley Adu says:

    This is very informative and helps people to come to a justified conclusion on what they should choose.

  • tommy losi says:

    Hello, I'm new to this dropshipping business and I have a online home decor store on Shopify, I was wondering if you could do a blunt and honest review about mysite?

  • T P says:

    Sarah, thank you for all the content you guys put out here! I have a question for you. What strategy do you take when a product you sell on your store is also listed on Amazon and the customer can purchase the same item with 2 day shipping? Does it come down to advertising your product and getting them to impulse buy instead of going to look for alternatives?

  • Hey sarah can you please tell me how to make my dropshipping site live only in USA and not in any other countries?
    It would help me allot if you replied 😊😊

  • very good video 🙂 never try with dropshiping but I subscribe because your video is amazing.

  • Hi Sarah quick question do you recommend any other sites other than AliExpress for dropshipping onto a Shopify store?

  • Hi Sara
    I Joined the DropShip Club for a Month and about to start my first dropshipping store, but confused weather to go with Physical Products or Print On Demand Products, which should i start first. Please Help

  • Hey Sarah, I'm super new to dropshifting, and I have a question about selling trademarks/brands. I know I should not sell trademarks, which are anything with a name brand/logo. However, on Aliexpress there are items that are listed as 'top brand'
    Is it safe to dropshift those? They don't seem to have any logo that would make me jump up, but its labeled as a top brand which scares me that I might get sued. Anyways thanks for the help!

  • najm yemen says:

    i love you so much you beautiful human being. thank you for your existence

  • Ecomleader says:

    Hey Sarah, thanks for a great video. You've clarified a burning question many beginners have. Both approaches have their pros and cons but we believe you can combine them and get the best of both worlds. You can dropship outdoor apparel and be an affiliate for outdoor accessories, for example.

  • Crypto 074 says:

    My new favorite channel. Such great info!

  • ***YouTube Comment Tutorial: creating A money flow online. ** Copy and Paste 2018
    Sell a Ebook or class course relating to shopify or affiliating. (Anything Actually!)
    Make people believe it until you believe it yourself.

    Example:
    I'm selling a ebook for 1000$
    I have a successful social media, with YouTube and Instagram ect.
    Showing off my fancy materialistic lifestyle, your eyes focused on. How i'm actually giving you the same advice.
    You buy my "ebook" thinking you can have my lifestyle afterwards. However, you notice its the same advice was giving before.
    I target young entrepreneurs that has interest in the idea, "suckers" to believe this.

    Update on my Ebook:
    I had 5 people this week that bought my Course.
    1000$ x 5 People = The lifestyle you wanted from me.

    Yes, the niche is selling a Drop shipping method. Giving a false lifestyle to making passive income from my viewers.
    I'd say a Ponzi Scheme. Only giving you this information to become more wiser on what you watch. There is nothing wrong with working a damn job. Deleting this comment will be soon.

  • Stay away from Numerology….morally…really…

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