Affiliate Marketing vs Drop Shipping

Let me start with some definitions and links to good articles I read. 
Affiliate marketing is the process of earning a commission by promoting other people's (or company's) products. You find a product you like, promote it to others, and earn a piece of the profit for each sale that you make. (smartpassiveincome.com) 

Amazon is a good example of an affiliate marketing. Blogging is another one.
Check out blogging topics that can bring you money. 

If you want to earn money by doing an affiliate marketing, check out 7 steps to Setting-up an Affiliate Site 
Make Money Online with Affiliate Programs 
1. Decide on 2–3 topics you are about so you have staying power.
2. Domain name: buy a domain name that reflects what you are doing. 
3. Hosting: Choose a host that will handle your requirements.
4. Email service: e.g. AWeber.
5. Patience—don’t monetize right away, build content, choose relevant products, and test.
6. Find your voice—be yourself, have an editorial calendar, use freedback.com
to set up a forum, reprint some e-zine articles.
7. Where to find affiliate programs—search on Google.

Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock but instead transfers customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. (wiki)

After reading and studying all of the materials and googling some additional information I created a list of pros and cons for both alternatives. 

Affiliate Marketing vs Drop Shipping

Drop shipping

Pros

1. You don’t have to manage inventory or product fulfillment. 

2. Gives you great flexibility in terms of product range - promote a dozen or promote a thousand. 

Cons

1. The amount of work required to start a dropshipped online store is definitely more than the effort required to be an affiliate marketer.

2. You are responsible for customer support. You'll have to deal with customers not getting their shipment on time, or getting a product that is defective or broken.

3. Fees to sign up or every time you drop ship a product

Affiliate Marketing

Pros

1. The entire sales process is completely hands off. There is no product fulfillment or customer support to worry about. 

Cons

1. You don’t directly collect any money. You get your monthly commission from the affiliate business based on your sales made from your referrals.

2. The amount of profit is limited by the commission you get. You can't set up your own price.