People on social media have revealed how they made tens of thousands of dollars through drop-shipping and affiliate marketing. (Source: TikTok)
A young Aussie has revealed how he’s pulling in $120,000 per year just from selling stuff online from his phone. The Sydney bloke said it’s a super easy way to make money and virtually anyone can jump on it.
But it’s actually a lot harder to break into the affiliate marketing and drop shipping game than it might seem. Mark Slack, career expert with SideHustles.com, told Yahoo Finance that people need to be wary about what they see and hear online.
“One of the most common misleading aspects of TikTok videos on affiliate marketing and drop shipping is the portrayal of these side hustles as ‘easy money’ ventures that require minimal effort,” he said.
“Many creators emphasise high earnings potential, often showing off screenshots of five-figure monthly incomes, but they tend to gloss over the challenges involved.”
Affiliate marketing and drop-shipping are two of the most popular ways to make money that are being promoted on the internet at the moment, according to SideHustles.com.
But they are two very different things.
Affiliate marketing is when you get a specialised link from an online marketplace like Amazon and every time someone buys a product through your link, you get paid from the retailer.
Drop-shipping is when you have an e-commerce brand that doesn’t do a lot of the heavy lifting and shifts that to a third party.
You might have an Etsy store that will accept customer orders, like a quirky t-shirt for example. That order gets sent to a company that will actually make the product and send it to the customer.
A Sydney bloke was stopped on the street by jobs app GetAhead and he revealed he was earning a very comfortable salary from his online empire.
He claimed to do both affiliate marking and drop-shipping and had made $120,000 in one year.
The man said he got into the online side hustle after seeing a TikTok about it and hasn’t looked back since. He told GetAhead it was far easier than he thought it would be and earned $30,000 selling just one product.
“I usually, sometimes just buy the product and show it, yeah. And then, like, yeah, hype it up a bit,” he explained on the TikTok video.
But it’s not just him saying how easy it is to make money this way. Social media is littered with people making huge claims about their earnings from drop-shipping and affiliate marketing.
One man on TikTok said he made $10,000 in his first month alone. Another bloke said you can earn upwards of $20,000 every month doing this side hustle and the results come in “pretty fast”.
Entrepreneur and Yahoo Finance contributor Taylor Reilly launched his drop-shipping business back in 2020 and pulled in $70,000 in the first 28 days.
But warned against the “easy money” mindset.
Because there is seemingly very little effort involved in affiliate marketing and drop-shipping, it appears to be a no-brainer to jump on the bandwagon and start making some much-needed cash.
Reilly thought he was on track to be a get-rich-quick success story after making tens of thousands of dollars in such a short space of time.
But he quickly realised how tough it is to be consistently successful in this arena.
“You’re at the mercy of third-party suppliers. A delay on their end is a direct hit to your reputation, one I had to learn the hard way,” he wrote for Yahoo Finance.
Taylor Reilly’s earnings in just one month, but he wasn’t able to keep the good times going. (Source: Supplied)·Taylor Reilly
“On top of that, with the market as crowded as a lifeboat, making your brand unique becomes nearly impossible. You’re not just competing with other drop shippers, you’re up against retail giants who are wholesaling and can afford to slash prices until your margins vanish.”
Slack said their study found that 15 per cent of TikTok videos promoting side hustles “contained misleading or exaggerated claims” and affiliate marketing and drop-shipping were found to be the top offenders.
“Unrealistic promises of high earnings and quick success are frequently emphasised, while the significant time commitment, learning curve, and potential risks are downplayed,” he explained to Yahoo Finance.
“The more people that jump into these fields, the harder it becomes to stand out and generate significant income.
“The study’s findings suggest that although these side hustles can be lucrative, they are not as effortless as often portrayed.
“Success in these fields now requires more innovation, effort, and time than in the past due to saturation.”
Aussie drop-shipper Zali Gillings said you can still definitely make money, but you can’t be doing what everyone else is doing.
“There are still a lot of people that think the market is saturated,” she said on TikTok.
“I have a very simple solution for this. Just do your market research, find out what specific products are saturated and don’t sell those.”
Slack added that there are a few factors that come into play for the ones who hit the big time with these side hustles:
Time Commitment: If you only have a few hours before or after your day job then affiliate marketing and drop-shipping might not be the side hustle for you. Slack said successful individuals are often investing 10 to 40+ hours per week on the side hustle and “this level of dedication is essential for scaling their operations”.
Skill Development: High earners aren’t just “relying on TikTok advice” and what’s trending on other social media sites, but are actively seeking out reliable resources and mentorship to stay one step ahead of the competition.
Creativity and Differentiation: You can’t just do what everyone else is doing. Standing out in a saturated market requires innovation and the ones earning the big bucks “often find unique niches, offer better customer experiences, or use creative marketing tactics to distinguish themselves from the competition”.
Persistence and Adaptability: The money isn’t likely going to be piling up from day one. You have to keep at it and might even need to fail at a few ventures before you find one that sticks.
Aussies shouldn’t be completely put off from jumping on affiliate marketing or drop-shipping, but they’ve been warned to approach it with a “realistic mindset”.
“While it’s possible to earn a substantial income, be prepared to put in the time, effort, and research required to succeed,” Slack said.
“Start small, learn as much as you can from reliable sources, and test different strategies to find what works for you.
“Remember, if a TikTok video makes it sound too good to be true, it probably is. Stay informed, be cautious, and be ready for a long-term commitment rather than expecting quick, easy money.”
Get the latest Yahoo Finance news – follow us on Facebook, LinkedIn and Instagram.
