I’ve been chasing the dream of making money online since 2011. Over the years, I’ve dipped my toes (and sometimes jumped in headfirst) into almost every online business model you can imagine: affiliate marketing, YouTube, social media content creation, blogging, Amazon affiliate marketing, and even Amazon FBA. You name it, I’ve likely tried it.
People often ask me, “Which is better, affiliate marketing or Amazon FBA?”
It’s a great question. These two business models are constantly compared, and for good reason: both can be highly profitable, but they operate in completely different ways.
Depending on your experience level, resources, and personal strengths, one will likely suit you better than the other.
In this post, I’m going to break down both models, based on my hands-on experience, so you can make a fully informed decision.
This is not a theory-based comparison; it’s what I learned from actually doing it.
Understanding the Two Models: Affiliate Marketing and Amazon FBA
Let’s start with the basics. Both affiliate marketing and Amazon FBA are methods of selling or promoting products online, but they approach it from very different angles.
What is Affiliate Marketing?
Affiliate marketing is a business model where you promote other companies’ products and earn a commission when someone buys through your unique affiliate link. You’re essentially the marketer, not the creator or seller.
You don’t need to create your product or handle inventory. You simply promote and drive traffic. When someone clicks on your link and makes a purchase, you get paid.
I remember one of my early wins with affiliate marketing was promoting AWeber, an email autoresponder tool.
I had a few people sign up using my link, and even now, years later, I still get monthly commission payments. That’s passive income in action.
What is Amazon FBA?
Amazon FBA (Fulfilled by Amazon) is a model where you sell your own physical products using Amazon’s platform.
You source or create the product, send your inventory to Amazon’s warehouse, and they handle storage, shipping, and even customer service.
In short: You’re running a physical products business but using Amazon’s infrastructure.
I went deep into Amazon FBA a few years ago and experienced both the ups and downs. It requires serious commitment, but it can also be incredibly rewarding.
Affiliate Marketing: The Low-Risk Path to Online Income
From my experience, affiliate marketing is the ultimate entry point for beginners looking to make money online.
Low Start-Up Costs
You don’t need much to get started. There is no need for inventory, no storage, and no shipping costs.
All you need is a platform to promote on (a blog, a YouTube channel, or even a social media account) and the ability to get traffic.
I started with a simple blog and used it to promote various affiliate offers. With a few SEO-optimized articles and a small amount of traffic, I was already making commissions.
Minimal Risk, Maximum Flexibility
Affiliate marketing gives you the freedom to promote almost anything, from physical products to digital courses to software tools and services, across any niche you choose. You’re not tied down to inventory or product development.
It also scales incredibly well. Once you find a winning affiliate offer, you can use paid ads, email marketing, or content marketing to scale your income.
Passive Income Potential
The best part is that affiliate marketing can create passive income. Content you create today, like YouTube videos or blog posts, can continue earning you money months or even years later.
That AWeber example I mentioned earlier? I haven’t actively promoted it in years, yet I still get those recurring commissions.
No Customer Service Headaches
When someone buys through your affiliate link, the vendor handles everything. No returns, no complaints, and no refunds to manage. Your only job is to get people to the sales page.
The Downsides of Affiliate Marketing
Of course, it’s not all sunshine.
Lower profit margins
Physical product commissions are often between 1% and 12%. Unless you’re promoting high-ticket or digital products, you’ll need volume to make serious money.
High competition
Because the barrier to entry is low, a lot of people are doing it. You’ll need solid marketing skills to stand out.
One workaround I found was to focus on digital products. These often offer 30%, 50%, or even 100% commission, making them much more lucrative than Amazon’s 4% physical product commission.
Amazon FBA: High Risk, High Reward
After years of affiliate marketing, I wanted to build something more scalable and brand-focused, and that’s when I dove into Amazon FBA.
Built-in Customer Base
The biggest advantage of selling on Amazon is the audience. Millions of people are already shopping there every day.
You don’t need to build traffic; it’s already there. If your product ranks, you’ll make sales.
Amazon Handles Fulfillment
I loved not having to worry about shipping or warehousing. Once your inventory is sent to Amazon’s fulfillment center, they handle storage, packaging, and delivery. They also deal with customer service and returns.
This system allowed me to scale without having to hire staff or rent warehouse space.
You Control the Product and Brand
Unlike affiliate marketing, Amazon FBA gives you control over your branding, pricing, and product features.
You’re not promoting someone else’s offer; you’re building your own business asset.
This was a huge appeal for me. It gave me a sense of ownership and the potential to grow something long-term.
Higher Profit Margins
Selling your own product typically means higher margins. While you do pay fees to Amazon, you keep a larger chunk of the revenue compared to affiliate commissions.
That said, this only works if you manage your costs well, which brings us to the challenges.
Upfront Investment Required
To launch a product on Amazon, you need money. You’ll need to source products (usually from manufacturers overseas), pay for shipping, order in bulk, and run ads.
For my first product, I had to invest in inventory, branding, packaging, and advertising, and that quickly added up to thousands.
Complex Logistics and Inventory Management
Even though Amazon handles fulfillment, you still have to manage inventory, plan restocks, and deal with logistics. If you run out of stock, your product ranking drops and your sales dry up.
It took me a while to learn how to balance inventory without overspending.
Time-Intensive
Unlike affiliate marketing, which can be semi-passive, Amazon FBA is a full-time business.
There are always moving parts, suppliers, logistics, customer reviews, and PPC campaigns. It’s rewarding, but it requires commitment.
So, Which is Better? Affiliate Marketing or Amazon FBA?
If you’re just getting started and you don’t have a lot of money or time, go with affiliate marketing.
It’s a low-risk way to learn online marketing, build traffic, and earn your first dollars online.
If you have capital to invest, some business experience, and the patience to build a product brand, then Amazon FBA can be incredibly rewarding.
That’s the exact approach I took.
I started with affiliate marketing and learned how to drive traffic, understand buyer psychology, and build funnels.
Then, once I had a bit of money saved and some confidence in my skills, I transitioned into Amazon FBA.
FAQs: Affiliate Marketing vs Amazon FBA
Can I do both affiliate marketing and Amazon FBA at the same time?
Yes, and many people do. Affiliate marketing can be a great way to build capital and learn online marketing before diving into Amazon FBA.
Which one is more passive?
Affiliate marketing is generally more passive. Once your content is ranking or your email sequence is live, you can keep earning. Amazon FBA requires more active management.
Which one makes more money?
It depends on execution. Amazon FBA has higher income potential per product, but affiliate marketing is easier to scale with multiple offers. Both can generate six or even seven figures.
What’s the learning curve like?
Affiliate marketing is easier to learn and faster to implement. Amazon FBA involves sourcing, logistics, and customer service; it’s more complex and time-consuming.
How much money do I need to start each model?
- Affiliate marketing: $100–$300 for tools like a website, email autoresponder, and paid ads (optional).
- Amazon FBA: $2,000–$5,000 for inventory, shipping, branding, and marketing.
Conclusion: My Honest Recommendation
After over a decade of testing and learning, I can confidently say this:
- Start with affiliate marketing if you want a low-cost, low-risk entry into online business.
- Move to Amazon FBA once you’re ready to build a long-term, brand-focused business with real assets.
Both models work. I’ve made money with both. But your success depends on understanding where you are right now and picking the model that fits.
No matter which path you choose, stay consistent. The internet is full of opportunity, but only those who stay the course will succeed.