Affiliate Marketing vs Dropshipping (with Aliexpress) – Which Online Business Method Is Best?

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:
►► Free Ebook – 6 Steps of a 6 Figure Dropshipping Store:


How We Make $500/Day With Affiliate Marketing:
How to Make $1 Million Dollars in a Year:

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.


6 Online Business Ideas to Make Money – Create an Online Small Business! (w/ Mark Ling)

6 Online Business Ideas to Make Money – Create an Online Small Business! (w/ Mark Ling)


Discover 6 online business ideas and use them to create an online small business (w/ Mark Ling).

►► How to Make $10,000/Month with Dropshipping:

Videos/links referenced:

Pick the Best Products to Private Label for Amazon FBA:
Why I Quit Retail Arbitrage:
How to Start a Business with No Startup Money:
Making Money with a Dropship Business:

Online Business Idea #1 to Create an Online Small Business: Start a YouTube channel!

Even though this channel (currently) has under 100,000 subscribers, it still earns tens of thousands of dollars a month.

The key is to not monetize with Adsense. Here at Wholesale Ted, we have adsense turned off. Why? Because it earns very little money: It earns just $1-2 per 1,000 views for most channels. We also do not monetize with sponsorships as this is worth very little money, and we like to have control over products we recommend/promote.

Instead, we recommend that you earn your money through promoting products/services you use/believe in that have an affiliate program, or sell your own products/services yourself through your channel.

And be sure to focus on creating great videos and content. If you give the viewer tonnes of value and treat money as a secondary concern, you’ll make a lot more money that way!

Online Business Idea #2 to Create an Online Small Business: Become an Affiliate Marketer

An affiliate marketer is someone who promotes other people’s products. When someone purchases a product because of you, you will get a commission cut on the sale. This can be as high as 50-75%. Our special guest Mark Ling makes tens of thousands of dollars every week just from this single method.

As an affiliate, your sales are tracked through a unique URL. When someone clicks on that URL, they get “cookied.” That cookie tracks them and it means the merchant can tell if someone bought the product after clicking on your link.

YouTube is one method you can use to generate traffic, but there are several others as well, such as Facebook, Google Adwords, free Google search traffic, Pinterest and Instagram.

You can either link directly to the product with your affiliate link, or you can direct people to download a freebie like an ebook in-exchange for giving you their email address. You can then email them advertisements for affiliate offers. We usually recommend this method.

Online Business Idea #3 to Create an Online Small Business: Reselling & Retail Arbitrage

This method involves finding items offline and reselling them for higher prices on sites like eBay or Amazon. There are two main ways to do this:

1) Find items in thrift stores/garage sales/Craiglist/buy-and-sell Facebook groups and resell them on eBay or Amazon.

2) Find brand new items priced lower in retail stores than on Purchase the stock and then ship it into an Amazon FBA warehouse. This method is called Retail Arbitrage.

As Sarah said in this video, she no longer does this because it doesn’t scale as well as some other methods, but it can still be a 6-figure business and is newbie friendly.

Online Business Idea #4 to Create an Online Small Business: Sell Your Own Digital Products with Affiliates

What is even better than being an affiliate? Having affiliates sell for you! Here is how this business idea works:

1) Create your own product (e.g. our special guest Mark Ling has an online course called Manifestation Miracle that makes tens of thousands of dollars every month).

2) Put it up on a site like ClickBank which has a huge pool of affiliates looking for products to promote.

3) Let affiliates drive traffic and sales to your product for you!

With the email list you build through your customers, you can then use that to promote other affiliate offers as well. It means you get to be both a merchant AND an affiliate!

Online Business Idea #5 to Create an Online Small Business: Dropshipping!

With this method, you can sell items without having to buy them in-advance. Manufacturers that dropship will let you buy items individually after a customer has ordered it, and they will ship it directly to the customer. It makes it a great ecommerce method for people with little startup money.

Online Business Idea #6 to Create an Online Small Business: Sell Products from China

With this method, you import items from China. There are several ways to sell these:

1) Private labeling & selling on Amazon’s FBA program.
2) Selling on your own websites (for even higher profit margins).
3) Combining with a digital product as an upsell (and use affiliates to drive this traffic).

Thanks for watching – if you liked the video please give us a thumbs up & subscribe!


5 Websites With FREE Traffic To Make Money With An Online Business

5 Websites With FREE Traffic To Make Money With An Online Business


Want to make money from free traffic online? Use these 5 websites now.
►► FREE 400k/Month Workshop:
►► FREE $10,000/Month ebook:



►► How Amazon Receives Inventory:
►► Jungle Market: (aff link)
►► How To Make 1 Million/Year With Branded Products:–4ggyMaU
►► How To Start A Side Hustle While Working Full Time:
►► Why Gurus Sell Courses:
►► How To Make $100/Day With Etsy:




The 5 Best Online Businesses to MAKE MONEY in 2019! (Online Business Ideas)

The 5 Best Online Businesses to MAKE MONEY in 2019! (Online Business Ideas)


Sarah reveals the top 5 online businesses to make money (& change your life!) in 2019.
►► FREE $10,000/Month ebook:
►► STEP-BY-STEP Dropshipping Training Course:

Interested in learning more about each of these businesses? Here are some extra videos we recommend you watch:


►► How to Make $1 Million/Year Selling on Amazon (featuring Dan Meadors):–4ggyMaU


►► How We Make $500/Day with Affiliate Marketing:


►► How to Create an Aliexpress Dropshipping Store:
►► Secrets to $2 Million/Year with Facebook Ads (featuring Adrian Morrison):
►► How to Pick Products that Make Over a Million/Year:


►►Traffic Tips: (we’ll have more training on this business model hopefully in the future!)


►► TUTORIAL: $10,000/Month with Print On Demand:
►► How to Make $1 Million/Year (featuring Michael Shih):
►► 5 Tips to Make Money from Print On Demand:


Malcare WordPress Security