Dropshipping Vs. Affiliate Marketing:
Your Insider's Guide to Building Automated Income Online
Not long ago, I was exactly where you might be right now—staring at my screen late at night, searching for a way out. I had a "good job" by every traditional standard, but I was exhausted, burnt out, and yearning for a way to earn a great income without sacrificing my time and sanity.
That’s when I stumbled upon two intriguing options: Dropshipping and Affiliate Marketing. Both promised freedom, flexibility, and the chance to build something of my own. But figuring out which one was the right fit? That felt like cracking a code no one wanted to share...
Here’s the truth: both of these online models have the potential to unlock a life of flexibility and financial independence—but only if you understand the insider strategies that actually work. Without them, you risk wasting time, money, and energy chasing the wrong path.
That’s why I’ve written this guide I wish I’d had when I was starting out. This article is your shortcut to clarity. I’ll break down the real pros and cons of Dropshipping vs. Affiliate Marketing, share hidden opportunities most people overlook - and help you decide which model is the best fit for your goals, skills, and lifestyle.
So, if you're ready to uncover the blueprint for building automated income online - let’s dive in!
Okay, let's start with the basics...
Affiliate marketing is where instead of selling physical products that you don't have to stock, you instead promote other businesses products online, and earn a commission for every sale or lead that you generate.
According to Statista, the industry is worth an est. $8.2 billion in 2023 - where in 2017 it was worth $5.4 billion so it has been significantly increasing, which means lots of opportunity.
How it works:
- You sign up as an affiliate for a product or service.
- You get a unique affiliate link that tracks all the sales or leads you generate.
- You promote the product or service using your affiliate link through various marketing channels.
- When someone clicks on your affiliate link and makes a purchase or signs up for a service, you earn a commission.
When I started online in 2023 after weighing up the options, I made the choice to start an affiliate marketing business. I made this choice mostly due to the low profit margins involved with the dropshipping model. I loved the idea of not having to buy my own inventory with dropshipping, but with affiliate marketing the profit potential was much higher, I didn't have the inventory issue AND I didn't have to deal with the customer service side of things (winning!).
Affiliate marketers build a loyal audience by creating valuable content through platforms such as blogs, websites, social media, podcasts, YouTube channels, or email marketing lists.
You want to focus on providing high-quality information, solving problems, and building trust with your audience. With your affiliate links in hand, you can strategically incorporate them into your content.
Being transparent with your audience about the affiliate nature of your promotions maintains trust. Personally, I only ever recommend products I have used and love myself. I think it's important to keep that integrity, so you are sure if someone purchases something you recommend - they will get value from it too.
Commission rates vary from company to company, but you can expect somewhere between 30%-50% for digital products and 5-10% for physical products.
The Pros...
Passive Income Potential - one of the biggest advantages of affiliate marketing, and one of the things that drew me towards this business model the most, is the potential to earn nearly passive income.
Once you have got yourself set up, created the content, and established a loyal audience - if you use strategies like Authority Marketing (which is highly recommended) your affiliate business can be set up on nearly auto-pilot to continue generating income even while you’re sleeping, or on vacation, (or folding you're laundry!).
No Requirement for Previous Experience or Special Skills - in comparison to traditional businesses, affiliate marketing doesn't require a lot of previous experience or special skills, especially if you start with a good training program or mentor. I was worried in the beginning I had to be some sort of tech wizard or really smart with computers and websites to build an online business - but rest assured! I did all this with none of these skills.
You may be surprised to learn too, that you don't need to have a large social media following or be posting on social media platforms constantly to do well in Affiliate Marketing. You don't even need to be on video if you don't want to! Of course you can use these strategies - but personally I didn't have any prior social media following, and I didn't want to have be on there posting all day either.
Flexibility and Freedom - affiliate marketing offers unparalleled flexibility and freedom. You can work from anywhere, set your own schedule, and choose the products/services you want to promote based on your personal interests.
It's an ideal option for those who are seeking out a way to earn income that gives them time freedom, financial freedom, and uncapped income potential.
The Cons...
Competition - affiliate marketing is another popular online business model, meaning you'll face competition from other affiliates. It requires innovation, staying up to date with industry trends, and finding unique ways to differentiate yourself from the competition.
Learning and using proven strategies like Authority Marketing will show you how to effectively sell online, which makes it much easier to overcome this hurdle.
Initial Effort and Financial Investment - while affiliate marketing can have a relatively low barrier to entry, it still requires some work in the beginning to get your systems up and running. Those that end up being successful are usually the go-getter types that understand they will need to put in the effort and investment when they start, to then reap the benefits later on.
There is a learning curve involved at first, especially when it comes to finding a niche, content creation, and effective marketing techniques. I personally wanted to build a profitable online business to replace a full-time income, not just make a couple commissions here and there. I wasn't an influencer with a social media following, and I wanted to get it set up where it could operate mostly on autopilot, so I could work from anywhere on my laptop.
So for me - that meant investing in an educational program to give me step-by-step guidance and training, so I didn’t waste time and money setting it all up to fail.
Dependence on Affiliate Programs - as an affiliate marketer, your success is tied to the company’s success and the affiliate program's policies. Changes in their business could directly impact your affiliate earnings.
The good news is there are millions of companies with affiliate programs online to promote so you can partner with multiple companies in your target market/niche to reduce this risk and have multiple streams of income coming in.
Both Dropshipping and Affiliate marketing can provide an excellent opportunity to earn income online without the need for lots of previous experience or special skills.
If you’re anything like I was - waking up day after day with that knot in your stomach dreading the pressure and workload of the day ahead - then this could be the perfect opportunity to build your way out of the stress hamster wheel and get to a place where you have the time freedom AND the financial freedom to live a life you love and enjoy.
So what’s the easiest and most effective way to get started in either Affiliate Marketing or in Dropshipping successfully? It's having the right training, strategies, and resources .
Like I said at the start, my hope in writing this was to save you all the time and headaches reading, researching, and questioning the different paths (like I did!).
So, I would love to share with you (for free) the same video workshop series that I finally got started with. Full transparency - these free video trainings are an intro only. I doubt anyone will learn the complete process of building a profitable online business from scratch (or any business for that matter) from a free training series – but what the free videos will do is give you a chance to see how the different business models can work, and make sure it all lines up with your goals and aspirations BEFORE putting any financial investment or time investment into a paid program. That’s what I loved about it.
The starter program on offer in the free video series will give you an even more complete introduction to the online business models, and how the Authority Marketing strategy works. It will also introduce you to a world-class education program that walks you through step by step from having NO IDEA what to do, No digital skills, and No experience - to the opportunity to build a 6 or even 7 figure online businesses like many of our members have (myself now included!).
The education and training they offer is extensive too, anything from Dropshipping, selling just about anything on Amazon or your own Ecommerce store, or of course just simply selling other companies' products via Affiliate Marketing and High-Ticket Affiliate Marketing (this one's my favorite!).
For me, this life-changing venture all started with a FREE video workshop training - and it can do the same for you too. Just click below to sign up.
When you get the free series you'll get my contact details too, so if you have any questions after watching the videos – feel free to get in touch!
There are thousands of different companies that offer affiliate marketing programs. You may have heard about some of the big ones like Amazon, Target, Adiddas, or Walmart affiliate programs? (The list goes on...)
Sure, they're awesome being large corporations with lots of product options to fit all kinds of different niches – but what I found, is for the most part they deal in small ticket affiliate commissions. When you’re dealing in small commissions it can take lots of time, sales, and effort to earn enough to replace an income.
By finding and partnering with companies that offer reputable High Ticket Affiliate marketing programs, it's no more pocket change – we're talking about commissions ranging from hundreds to thousands of dollars per sale.
Also, by focusing on high-ticket products, you're targeting a specific audience where you can become a trusted authority creating long-term relationships - making them more likely to convert.
High Ticket Affiliate Marketing is all about quality over quantity.
Another lucrative model is Recurring Revenue Affiliate Programs. These programs offer ongoing commissions, sometimes for as long as the referred customer remains active. Think subscription-based services, or membership sites.
Here's why they're so compelling:
Steady income: You earn commissions month after month from a single sale, creating a more predictable revenue stream.
Compound growth: As you accumulate more customers, your monthly earnings grow, even without making new sales.
Higher lifetime value: Over time, the total commissions from a recurring customer can far exceed a one-time high-ticket sale.
Lower churn pressure: While you might lose some customers, others will stick around for years, providing long-term passive income.
Scalability: Once you've built a base of recurring commissions, you can focus on growth without worrying about starting from zero each month.
By combining high-ticket and recurring revenue models, you can create a powerful affiliate marketing strategy that maximizes both immediate and long-term earnings. This approach allows you to build a sustainable business with a strong foundation.
Authority Marketing – The Essential Skillset to Learn if you Want to be Successful Online
What I learned very fast is the difference between success and failure in Affiliate Marketing or Dropshipping is learning the skills to effectively generate sales on the internet.
Authority Marketing is a cutting-edge strategy enabling you to make more money in less time, by working smarter not harder.
It’s about embracing today's digital world by leveraging the power of online marketing systems to automate selling any product or service to any target audience anywhere in the world.
Authority Marketing is a Shortcut
Most people in online business these days use the same outdated and saturated money-making strategies everyone else is attempting to use. But this makes you blend in with the rest of the noise online.
If you use Authority Marketing, you can build multiple income streams from scratch in record time.
That's because Authority Marketing enables you to generate leads and sales online, 24/7, 365 days a year, without ever having to chase or convince anyone - or spend your time posting all day on social media. It even works when you’re not.
Here's What it Does For You…
Everybody knows the internet is where people prefer to research and buy products and services.
When you learn how to use Authority Marketing, you will gain a skill set to tap into this multi-billion dollar opportunity and know precisely how to get in front of targeted buyers and convert them into customers - on complete autopilot.
As a result of the above, you’ll bring money into your bank account every day, like clockwork.
You can do this with your own products or services. Or tap into newbie-friendly business models like Affiliate Marketing to earn generous commissions.
All this can be done from scratch and starting today!
To Learn How, Sign Up Below:
Hi there! I'm Mel Robinson and this is my husband Bernie (and our wild wee dog Lucky!) and together we've now built a life that once seemed impossible.
I'm a former mortgage broker and co-built a 7-figure business from scratch, so I knew what traditional success looked like. The business was thriving, our clients were happy, and from the outside, everything seemed perfect...
But success came at a steep price – my health and peace of mind were slipping away. Years of long hours working nights and weekends, and the stress of wearing all the hats in a fast growing business finally led to sleepless nights and anxiety. Eventually I started having near-panic attacks during routine client meetings I'd done thousands of times before. Something had to change.
Being far from our families (I'm from Minnesota, Bernie's from Brazil, and we live in Australia!), we were also missing precious moments with aging parents and growing nieces and nephews. Even when visiting home, I was mentally stuck in work mode, unable to truly be 'present'.
During a COVID lockdown, I had a revelation while sitting on our couch: success without freedom isn't really success at all. We dreamed of a life where we could spend time with loved ones, go surfing, take beach walks with Lucky, and actually enjoy our work – but how?
After exploring various options like franchises, going back to university, or more passive businesses (vending machines or laundromats) - we discovered that an online business was the only option that offered what we truly wanted: time freedom, location independence, and financial stability.
We had initial concerns - that we would need to have lots of technical skills to build an online business (which we didn't have), or be on social media all day posting (which we didn't want to be doing!) - but then we were introduced to a program for complete beginners that showed us that we didn't need any of this to get started from scratch.
So we went for it! We put in the effort to learn the skills to build a successful online income stream and it changed our lives.
Our only regret we have looking back? Not starting sooner....
Put really simply - Dropshipping is a way to sell other people's products online without having to keep any inventory yourself. You make a profit by selling the product at a higher price than what you pay the supplier to purchase the product.
How To Get Started:
Research Suppliers - first you find reliable suppliers who offer dropshipping services. You can check out websites like AliExpress, Oberlo, or SaleHoo to help you find suppliers. Make sure to check their reviews, shipping times, and product quality.
Create an Online Store - then you use platforms like Shopify, Amazon, WooCommerce, or BigCommerce to set up your store. You'll want to design your store to be user-friendly and appealing. Add the products you want to sell, including good descriptions and high-quality images.
Set Your Prices - determine your pricing strategy. Remember to factor in the cost from the supplier, shipping fees, and your profit margin. You'll want to be competitive but also ensure you’re making a profit.
Market Your Store - Arguably the most important step is learning how to effectively market your products online to stand out from your competition. You'll need to learn cutting edge strategies like Authority Marketing to stand out from your competition online and attract customers to your products.
Handle Orders and Customer Service - When you receive an order, you'll then buy the product from your supplier and provide them with the customer’s shipping details. You'll then communicate with your customers about their order status and handle any issues or returns.
The Pros...
Low Startup Costs - you don’t need to buy products upfront or maintain inventory, and without the need for a physical store or warehouse, your operational costs remain low.
Simple Setup - with platforms like Shopify or WooCommerce, you can quickly set up an online store without needing extensive technical knowledge.
Flexible Location - you can run your dropshipping business from pretty much anywhere with an internet connection.
Wide Product Selection - since you don’t need to stock products, you can offer a wide variety of items in your store to fit your niche.
The Cons...
Low Profit Margins & High Competition - since it's easy to start with such a low cost to entry many people get into dropshipping, which can drive prices down and reduce your profit margins. Some suppliers also charge fees for dropshipping, cutting into your profits yet again. It will be very important to learn how to stand out effectively online. If you learn and implement strategies like Authority Marketing, it can help this hurdle immensely.
Inventory and Shipping Issues - since you rely on suppliers, you can face stock availability issues, leading to backorders and unhappy customers.
Lack of Control & Quality - you have little control over product quality, packaging, and shipping times, which can affect customer satisfaction and leave you to deal with the unsatisfied customers. Handling returns, exchanges, or complaints can also be difficult when you don’t physically handle the products.
