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The revenue stream you're probably ignoring (but shouldn't)


Issue #164 | October 14th, 2025

Presented by Lettuce

Hey there!

Last week, while reviewing my business financials, I stumbled across a number that shocked me.

Over the first 10 years of my business, more than 50% of my total revenue came from affiliate marketing.

Not from my own courses.

Not from my coaching programs

Not from speaking fees.

But from affiliate commissions simply by recommending other people's products and services.

And here's the crazy part: I wasn't even trying to focus on affiliate marketing. It just happened naturally as I recommended tools and resources that I knew would genuinely help my audience.

This got me thinking: If affiliate marketing can generate that much revenue almost by accident, what could happen if you approached it with a clear, strategic plan?

Let's get unstuck.

Story of the Week

The Affiliate Marketing Reality Check

Here's what most people get wrong about affiliate marketing: They think you need a massive following before you can start earning commissions.

The truth? You can start generating affiliate revenue while you're building your audience, not after. With today's algorithms pushing content to targeted audiences, you can serve people and earn money right away.

Think of it this way: If you see someone drowning and you have a life ring, you don't say, "Sorry, there aren't enough people watching for me to throw this to you." You throw it immediately.

The same principle applies to affiliate marketing. If you know about a tool or resource that solves someone's problem, share it — whether you have 10 followers or 10,000.

Why YouTube is the Golden Platform

After testing affiliate marketing across every platform, YouTube consistently delivers the best results. Here's why:

Search-based discovery: People actively looking for solutions find your content, meaning they're already in buying mode.

Long-form trust building: You can demonstrate products in action, not just mention them in passing.

Evergreen income: A single video can generate commissions for years as new viewers continue to discover it.

I've created individual videos that have generated six figures in affiliate commissions — not from ad revenue, but from people clicking my affiliate links after seeing the tools in action.

The Content Strategy That Actually Converts

Forget the old approach of just dropping affiliate links and hoping for the best. Here's the three-part framework that's working right now:

1. Problem (30% of content): Start by highlighting a specific, painful problem your audience is facing. Make it emotional and relatable.

2. Solution (70% of content): Present one product as the solution, not just one option among many. Show the transformation, not just the tool.

3. Proof (throughout): Share your personal experience, specific results, and address common objections.

The "Free Way vs. Headache-Free Way" Strategy

This is my favorite approach to ethical affiliate marketing:

First, show people how to solve their problem for free. Then, introduce the tool that eliminates the headache.

For example, I once taught my audience how to do keyword research manually using free Google tools — a 30-minute process. Then I demonstrated how a paid tool could do the same research in 10 seconds.

People could see exactly why the tool was worth paying for because they'd experienced the pain of doing it manually.

Your Affiliate Marketing Quick Start

Ready to test this approach? Here's your simple action plan:

1. Identify one tool or resource you genuinely use and love that solves a real problem for your audience.

2. Create content showing the problem this tool solves and demonstrate it in action.

3. Be transparent about your affiliate relationship — trust builds when you're honest about earning commissions.

4. Focus on their outcome, not your income. When you genuinely help people solve problems, commissions follow naturally.

5. Start with one platform (I recommend YouTube) and create 2-3 pieces of content around the same tool to test what resonates.

Remember: affiliate marketing isn't about selling — it's about serving. When you recommend something that genuinely helps your audience, earning a commission becomes the natural result of providing value.

The best part? You can start this approach today, regardless of your audience size. Focus on serving one person at a time, and watch how those individual recommendations compound into meaningful revenue over time.

Here's to serving first and earning second!

Quote of the Week

"The best way to find out if you can trust somebody is to trust them."

—Ernest Hemingway

SPI News and Notes

YouTube is the #1 platform to grow your audience, business, and income — but how do you get started? Join Caleb Wojcik and me for a LIVE webinar on Tuesday, October 28th, where we’ll share exactly what we’d do if we were starting a channel today. We’ll cover how to launch the right way, understand YouTube’s algorithm, create content that connects, and monetize for long-term growth. This is my most popular presentation, and I’ve leveled it up with fresh insights and proven strategies straight from my own recent YouTube wins. Click here to learn more and secure your spot!

Do you own your business, or does your business own you? In this episode of The Smart Passive Income Podcast, my guest Justin Donald and I break down what it truly means to be a lifestyle investor and share the top strategies used to build wealth by focusing on niche assets. We discuss how to identify and capitalize on emerging trends, which opportunities beginners should prioritize, why it’s crucial to say no to most deals, and more. Tune in here!


Want to get an email from me every time I release a new podcast episode? Click here and I’ll make sure you never miss out!

In this newsletter, I talked about how to effectively incorporate affiliate marketing into your business strategy as a significant source of revenue. To make it even simpler, I’ve created the Affiliate Marketing Cheat Sheet. This practical resource walks you through three focused exercises to help you determine the best products and services to promote to your audience. You can access it for free inside the Explore tier of the SPI Community. Click here to grab the cheat sheet and unlock more free resources! If you don’t have an account yet, you’ll be prompted to create one for free and get instant access.

Cheers,

Pat Flynn

Founder, SPI

Dad Joke of the Week

I told my son I was named after Thomas Jefferson…

He said, “But Dad, your name is Pat.”

I said, “Yeah, but I was named after him…not before.”

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