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

Hey! Miles here, this video is
real estate investing versus affiliate marketing. Specifically, I want to help you understand
what is the best investment of your time and or money and what’s going to give you the
best return on said investment. You See, I started both affiliate marketing
and also real estate investing, which I’ve flipped four houses when I had absolutely
no money. So I know personally from experience that
you can do both or either of these with zero money down, but at this point in my business,
I’m generating a lot of surplus cashflow and I’m seeking to reinvest that cash into another
asset that’s going to generate more cashflow. You see, I’m a cash flow investor. I like putting my money’s away to get longterm
cash flows back. So I’ve been running the numbers and the numbers
make a very, very clear picture on which is the best option for me. What’s best for you is up to you, but you’re
going to get to analyze that a little bit based on my kind of understanding and my realization. So first and foremost, I do want to reiterate
that you can start both options with no money out of pocket and you can really use nothing
but effort to get things going forward. Um, I started in the dorms during college
flipping houses. I would go down to the county courthouse,
I would research the list pendants filings I would find who’s late on their mortgage. I would sit down, I would get in contact with
them, I would negotiate a deal and a contract with them. And then I would take that contract around
and market it to the local investors, attempting to partner with those investors on those deals. It’s called wholesaling and I again was able
to do it with just pure effort. I learned how to do it by reading the books
I got from the library and watching the videos and reading the forums. So that’s a possibility. And then affiliate marketing. So I started making money online in 2003 doing
affiliate marketing. Essentially social media marketing mixed with
an affiliate program was enough to generate three, $4,000 a month for over a year. Now that came crashing down because I was
doing it wrong. And today I have some videos. I have a free video series that teaches affiliate
marketing the right way to do it because since we’ve kind of got our feet back under us and
got it going the right way, my wife and I have made millions of dollars online. So those are my two options, right? I’ve got, I’ve got some funds aside allocated
for investing and it’s like, which ones are going to be a better use of the money? So I ran the numbers and I started in real
estate. Now I’m familiar, I’m very familiar with this
specific real estate market and in that market I know that I could get a great single family
home for about $225,000 now if I’m going to do a 20% down mortgage on that, it’s going
to cost me about $45,000 down. And I obviously expect there’s going to be
some paint, some carpet, some work. So I’m minimum looking at about $50,000 down. Now. The rents in this area, the rents in this
neighborhood, and let’s go real quick. The mortgage on the note that’s leftover is
about $900 per month on that. So, so at one 85 borrowed, and it’s about
$900 a month on the mortgage on that note. So the rents in this neighborhood could hold
up to about 1500 per month. So that’s a $600 per month, potential cash
flow. But I am not physically in that location. I travel all the time. I already have two places in very different
locations and I’m looking at a tropical place next. So I’m, I’m a nomad in some senses, so I’m
not going to be managing this. So there’s 10% right off the top for property
management, which brings my actual cash flow down potential by $150 per month. And then you need to have what’s called a
cap ex account. That’s a capital expenditure account. And essentially on a house, you’re going to
have a roof that goes bad at some point that needs repair. Uh, the water heater is going to go out, the
furnace is going to go out, all kinds of things happen to houses and you need to be ready
to have essentially the house account pay for those kinds of upgrades, right? You don’t want to go out of pocket deeper
for those kinds of upgrades. This is a capital expenditures account and
what I would do is 50% of the income of the profits that comes in from that, it would
go into a separate capital expenditures account until I had six months of rent sitting there
because once your lease is up, you never know. You might have two or three months of vacancy
in there, which means ultimately I would expect something to the tune of about 225 to $250
a month. Positive cash flow today in my pocket. Okay, so that’s about $50,000 in and sure
it’d be building its cap ex account. I get that, but that’s not my money. That’s the house’s money, right? To keep the house going. And I would get out of $50,000 in approximately
$250 per month, maybe $300 a month. There’s probably some markets in the country
where I could get 400 or so dollars per month. Now let’s go ahead and run the numbers based
on a affiliate marketing site. One of the things I love about affiliate marketing
is you really can hustle it up from ground zero. When you’re doing the world of real estate
investing, you definitely need some other people involved. You need to find a seller. You then need to go find some investors to
buy that deal from. As a wholesaler, you’re playing the middle
band game, but when you do affiliate marketing, it can literally be you, your laptop at night,
just grinding it out in the evenings after the kids and the wife or husband goes to bed
and I love that it’s that you can be that resourceful with it. Now. With that said, I don’t have much time to
dedicate to this, so I’m taking a pay someone, a essentially a content team and a project
manager to do the actual work for me and I’ve been running the numbers on this and my expectation
is to spend again, $50,000 to put into this website and based on that Niche I’ve chosen
based on the site based on kind of some longterm averages that I’ve seen from my business over
a very long period of time. And also talking with some of my friends who
do this professionally as well. I’m quite confident that I should be able
to get upwards of $3,000 per month positive cash flow from a $50,000 investment. Now, if you think about those two numbers,
it’s a distinctly different result. On the other side, neither of these are passive
passive income as a complete line. Both of these are very active income. Even me as the one who’s Gip just putting
money in the direction, right? I’m essentially giving money to a project
manager. I’m giving money to a team of writers. I still have to choose them. I have to choose. There’s a lot of choices. There’s a lot of involvement from me. I’ve just made it as hands off as possible
so it’s, it’s very residual and it’s recurring income, but it’s absolutely not passive because
I do still need to be involved. I still need to guide the ship and steer the
ship, if you will, but even if I’m 50% wrong, right? Let’s say I don’t get 3000 but I only get
$1,500 a month positive cash flow off of this site, that actually means that I’m still doing
upwards of five times as good if not more compared to the real estate investment. There’s no gigantic bank involved. My credits not on the line. There’s no real kind of liability behind the
Internet based route and then you might be thinking, well miles, but I could eventually
sell that asset. I can sell that rental property. You can and you will absolutely pay capital
gains on that unless you 10 31 exchange it and there is a huge second hand market for
profitable affiliate websites. You can sell them for 2030 even sometimes
upwards of 40 x your profit multiples, which is kind of a crazy number. So you can easily sell these things for a
hundred to $150,000 or more for these website. There’s a really big market place for those,
so it is also a saleable asset, but again, I’m not in it for the big hits. I want to get that longterm consistent cashflow
that can pay off beach houses in the tropic, right? That can be reinvested in essentially a portfolio
of websites, let website a pay for B c, D and build a portfolio of seven or eight sites
that together generate 20 $30,000 additional cashflow for me, my family, my business, et
cetera. That’s my ultimate plan. So to me, the numbers clearly point to affiliate
marketing. Now, I also have an affinity for the world
because I’ve been working online, I’ve been making money online since 2003 the good news
is that affiliate marketing today is probably a better opportunity than it was back in 2003
when I first got started. There’s billions of people connected on social
media now. That was not the reality in 2003 youtube is
a thing that was not a reality. So number one, to train yourself on how to
build an affiliate marketing website, the youtube tutorials are there to help you to
learn how to do content research, to learn how to write SEO content that ranks fast. I teach that for free right here in Youtube. That was not an available resource, but on
the other side, you could even leverage video marketing for your affiliate marketing game,
which obviously was not an opportunity back then. Also, one of the big changes that’s happened,
excuse me, since 2003 when I first got started, everyone now has super computers in their
pocket that are always connected to the Internet and we are now realizing that the world of
the Internet offers us these extremely specific answers to all of our extremely specific questions. If you look behind me, you might notice that
this Green Hill side back there, that’s about a quarter acre on this side, and I’ve got
about 21 acres behind you. Uh, there’s a lot of mowing to be done here. So I go on a research, what’s the best mower,
what’s the best riding mower? And sure enough there are specific websites,
review based websites dedicated to helping me choose what the best writing mower is,
which is upwards of a 2,500 to $3,500 purchase. And that affiliate who actually connects me
with the mower that I want, that’s going to be best for my land and my current situation
where I’m at, that person could earn a five to 10% commission and that’s a pretty big
commission on that sale. So what I’m getting at is the world of these
micro niches is absolutely exploding from racing drones to horseback riding saddles
to English, horseback riding boots. There’s all kinds of interesting ways that
one could build an affiliate site in something they enjoy or something they have to deal
with anyways. Right. I have to deal with mowing this multiple times
a year anyways, so I could, if I wanted to build a brand around that now potentially. And you need to have a good accountant on
your side potentially. There’s an opportunity for me to buy lots
of riding mowers, lots of weed, whackers, lots of lawn care equipment, do reviews on
the different lawn care equipment by being out here doing something I’m already going
to be doing anyways and I may very well be able to write off all of those expenses because
I’m creating review based content on each and every one of those pieces that is not
required. That is a potential perk. And again, you need to have an accountant
on your team who understands how this game works and how the whole kind of research and
development side of being an affiliate works because theoretically that very well can be
a deduction. So the world of Internet marketing, affiliate
marketing can open you up to a lot more, uh, business deductions as well, which is kind
of just a nice little icing on the cake for the right type of person. I hope you found this video to be helpful
and interesting. I think that both are great ways to grow wealth. I know for a fact that real estate investing
is one of the long strategies that has been absolutely proven to create wealth in our
world and if you’re good at it, if you have trades based skills, if you’re handy, if you
know your market in your area and you’ve got a surplus of cash that is still very well
may be a great opportunity for you to reinvest your cash along with a team who’s going to
manage that and run that for you or you might want to keep that extra 10% and play landlord
yourself. It is a business, so treat it like a business. Don’t think it’s passive because it’s not. You need to be actively involved to manage,
maintain, improve your asset to find those right kinds of tenants who are going to be
around for years and years and they are going to improve your property for you. Then on the other side, the affiliate marketing
game, you can start from nothing but if you’re in a position where you want to just throw
money at it to really grow the asset. There are teams, there are places you can
go purchase entire websites that are already built. You can hire entire teams to do all of the
work for you. Ultimately creating a pretty good residual
cashflow stream and in my numbers and running the numbers for myself, I see massive potential
in the affiliate marketing side compared to the real estate side, which is exactly why
I’m starting an affiliate marketing division within my business that’s going to go create
and market these new types of sites. They’re basic review sites. I’ll be explaining more about what I’m doing,
the exact costs involved, where I’m going to purchase these websites, where I just purchased
the one that I’m running with, where I’m getting all my content written from. I will be sharing that in the future and if
you want to be sure to get those updates, hit the subscribe button and more specifically
once you do that, hit the bell so you get notified. When my new videos come out, my team and I
are finishing up our writeup of month one from this project where I’m going to detail
out all of the different numbers and where we went to get all of the bits and pieces,
so this was the framework. This was the big idea of which option do I
choose and now we’re going to start the process of documenting growing the site. I’m going to track it each and every month,
how much I’m investing. Well, my total investment is and how much
money it starting to kick out on the other side, and we’re really gonna track this to
see, can I get to that three grand a month positive cash flow mark for under $50,000
even if I get to $2,000 a month or $1,500 a month for around that 50 grand number, that
is going to be a wildly successful investment for me in my brand. Is that right for you? I don’t know. You need your own investment strategy. I’m not an investment professional. I’m just telling you what I do and I’m telling
you the numbers that work for me. I appreciate you. I thank you for your time. Give a thumbs up, share like do what you do,
engage. I appreciate you and be sure to subscribe. Hit that bell. I’ll catch you on the next video till we meet
again. Be well. Cheers.

Add a Comment

Your email address will not be published. Required fields are marked *