Affiliate Marketing vs. Real Estate Investing – Which Investment Offers The Best Cash Flow?


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You can start affiliate marketing or investing in real estate with no money down, but which investment is best?

After making my first money online affiliate marketing with MySpace in 03…

And having the income completely dry up (because I built it on social traffic and not on search traffic)…

I went all in on real estate investing.

More info on affiliate marketing:

More info on how to invest in real estate:

In fact I packed up from Santa Monica where I was living and moved to Albuquerque New Mexico to finish my degree and start flipping houses.

This was in 2005 during the big run up in the Real Estate market before the global financial crisis.

With zero dollars of my own money and a crazy amount of hard work and stress I flipped four houses.

I also got my bachelors degree at the same time… All starting from my “home office” in the dorms at UNM.

I’ve always considered myself an investor even when I had no money and was living in the dorms.

I knew that every ounce of energy and every hour I put into something is potentially an investment.

Digging through County courthouse records to find who was about to enter foreclosure was how I sourced the deals for my investors.

Physically demoing bathrooms and gutting disgusting houses was the investment I was able to put in…

Today, now that my cash flow situation is 10x what I ever thought it might be…

I’m still an investor…

And I’ve spent months recently analyzing different investment opportunities for me to get my money’s working harder for me.

Deep down, I’m a cash flow investor… I first learned this idea from Robert Kiyosaki’s book Rich Dad Poor Dad and his Cashflow game.

When I invest my hard earned monies I want them to generate cash flow!

I don’t kid myself thinking this is passive, but it is residual and recurring income which can pay off mortgages, tropical beach condos, or more investments!

Just last week I did a deep dive into the numbers with my calculator and my notepad really comparing affiliate marketing with real estate investing.

I’ve got enough for a down payment on a house sitting there waiting to get put to use…

But is that the best use?

Well, I could buy a 225,000 house with about $45,000 down…

My payments would end up being about 900 month.

Rent in this area would generate approximately $1500 per month and I would have a property manager who takes 10%.

This leaves me with about 450 per month cash flow and I’d put half of that into a “Cap-X” account…

And I don’t want to go out-of-pocket for those expenses

Because the roof is eventually going to need repair… The water heater will eventually need to get replaced…

You know, the not-so-passive side of real estate investing. 😉

$45,000 in for about two or $225 month cash flow.

That is a rubbish return.

So here’s what I’m doing with the help of my team…

I’m buying and building a new affiliate website because I’m convinced I’ll be able to get significantly better returns.

My target is to have $3000 per month positive cash flow by the time I invest $50,000.

That is more than a 10x better return on investment…

And the best part, even if you don’t have money to put into a site like this, you could build it out completely for about $1000 invested over the course of three years.

Plus a whole lot of hard work, like when I used to have to dig around at the courthouse filings…

Or when I had to remove moldy drywall from nasty old bathrooms in fixer uppers…

Hey, online… All we have to do is research and publish… Research and publish.

Here’s the exact ‘how to make money affiliate marketing’ video

It teaches you everything you need to know to get started.

That’s not too bad.

So for me, the decision has been made…

Affiliate marketing is a far better investment opportunity for me in my life right now.

So I’m all in!

We are almost done with our first month build out on the new website and all detail all of the specifics for you, soon.

Since were coming off the heels of freedom day…

I wanted to give you my plan that I’m executing to create even more freedom in my life.




  1. If you want to start with zero investment, affiliate marketing is the good start. You can also do that on real estate, but it will take time. If you want to start RE, rental would be a good start. Money in, then add new ones to leverage. Ask Pro for advice my statement is not an investment advice.

  2. Affiliate marketing is great, but nothing is without a cost. Everything must be managed with the focus and mindset of a professional. All consistent wealth creation, takes substantial sustained effort over time. And you must learn to acquire an audience. Which is becoming harder as these channels become more and more saturated. Feels like podcasting is still in relatively earlier days. I have also had a lot of luck leveraging reddit to drive traffic back to youtube. However, the title of this video is a little off (but good for clicks). Real estate is not a v.s… it is more of a long-term wealth storage mechanism… And given the tax advantages, there is not much that can beat it. Good luck my friend – you continue to inspire me.

  3. Thanks for the video. I believe there is so much more to real estate investing in addition to positive cash flow : 1) leverage 2) control 3) tax incentives 4) appreciation 5) depreciation. In my mind, Ideally, some portion of cash flow from affiliate marketing should be invested in the historically proven Tangible asset – real estate.

  4. Most major real estate markets are starting to decline after an 11 year bull market and rebound from the 2nd Great Depression in the U.S.

    Wholesaling and flipping can be done in a downturn but you really have to watch your numbers and be sure to buy it at the right price. It requires smarts and skill overriding desires and dreams.

    Whenever looking at real estate for asset appreciation it’s recommended to get a 30 to 50 year median price chart for that area. The chart will tell you where the market is and where its going. Real estate moves in trends that last for years, smooth price lines that are easy to see and predict. Right now most of those charts would be telling you to avoid real estate for a few years. Once it’s declined for a few years the timing will soon be close to buy and ride the coming upswing. Most profits will come from the most volatile markets, usually on the coasts. Big price swings bring big losses to those who buy now but also big gains to those who buy when the market’s been down for a few years.

    The digital age and the endless opportunities it brings has replaced real estate as the most attractive and monetarily rewarding investment venture.

    But I’m a real estate buyer in a few years when we’re in a normal down cycle and it’s all ugly to everyone else.


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