Podcast Summary: The $100 MBA Show – Is Affiliate Marketing Still A Viable Business Model In 2025? (MBA2693)

Host: Omar Zenhom
Episode Date: October 22, 2025
Episode Theme: A candid look at the state of affiliate marketing in 2025: Is it still a viable way to make money online, or has the landscape shifted permanently?

Episode Overview

In this Q&A Wednesday session, host Omar Zenhom addresses whether affiliate marketing remains a practical business model in 2025. Drawing on his own entrepreneurial experience and the changing trends in online business, Omar dives deep into the realities of affiliate marketing. He examines its evolution from the “gold rush” days to the current intensely competitive environment, highlights systemic shifts such as reduced commissions and ad costs, and provides actionable advice for listeners considering affiliate marketing either as a principal or supplemental income stream.

Key Discussion Points & Insights

1. What Is Affiliate Marketing? [03:20]

• Definition Refresher:
  “Affiliate marketing is when you promote someone else’s product and earn a commission on the sale of that product… You just send people through a special link that you get and get paid when they buy. That simple.”
  — Omar Zenhom [03:20]

• Historic Context:
  Affiliate marketing was previously seen as a fast-track online income method, especially for those starting out, with examples like Pat Flynn of Smart Passive Income famously earning significant monthly commissions.

2. The Current State of Affiliate Marketing: 2025 [05:01]

• Is It Still Viable?
  "Yes, but it's not as profitable as it used to be." — Omar Zenhom [05:02]

• Why Has Viability Changed?

  • Saturation & Competition:
    “Competition has absolutely exploded... every niche...it's saturated with affiliates. That means it's harder to stand out, it's harder to rank for keywords, it's harder to win people's trust, really.” [05:53]

  • Lower Commissions:
    Companies are decreasing affiliate commission percentages as they realize they don't need to pay as much.
    “Amazon used to give 8 to 10%. Today in many categories is as low as 1 to 3%... it's not reoccurring.” [06:52]

  • Rising Ad Costs & Platform Restrictions:
    “Ad platforms are crowded and expensive now. And many do not allow for affiliate marketing because...it's making it too expensive for other legitimate competitors...” [07:32]

  • Declining Trust:
    Audiences are more savvy—quick to spot insincere recommendations.
    “Audiences today are smarter. They have like a spidey sense when they feel like they're being pushed to buy something for a commission.” [08:26]

3. Should You Rely on Affiliate Marketing? [07:15]

• As a Main Income Source?
  Omar is clear: “I don't believe that affiliate marketing should be your number one source of revenue in your business because it's so volatile and it's just not the same as it used to be.” [05:06]

• As Supplemental Income:

  • Affiliate marketing can still serve as a valuable side revenue stream.
  • Best suited for complementing your core offering, e.g. recommending tools in online courses.

4. Modern Strategies for Affiliate Marketing [10:30]

• Add Genuine Value:
  “Don't just drop a link. Create tutorials, create deep reviews, maybe even comparisons with other competitors… You're really helping people make a decision.” [10:35]

• Leverage High-Ticket Products:
  Focus on products with higher prices and better commission rates.
  “It's hard to make real money when you're pushing $20 gadgets... But if you're in a space where the product costs $1,000 and you earn 30%, that's $300.” [11:12]

• Build Community & Trust:
  Only recommend products you genuinely use and believe in.
  “You want to make sure you recommend products you trust and hopefully that you have used or use. Because that way you can actually talk about it in detail and say why you recommend it.” [11:58]

5. The Importance of Building Your Own Platform [13:00]

• Downsides of Affiliate-Centric Business:
  “You're always building on someone else's land, okay? You don't control the product, you don't control the price. You don't control the commissions or whether the program even exists.” [13:10]

• Long-Term Focus:

  • Use affiliate marketing as “training wheels” while you build proprietary products/services.
  • Echoes Pat Flynn’s statement:
    “If you can sell someone else's product for a 10% cut, you can sell your own product for 100% cut. By the way, the skills are the same.” [13:52]

• Equity & Asset Building: “When your product is yours, the creator, you keep the margins, you control the experience and you build real equity in your business—a business you can sell one day.” [14:14]

Notable Quotes & Memorable Moments

• “Is affiliate marketing still viable in 2025? Yes, but not as a standalone business model. The commissions are smaller, the competition is tougher, and the days of getting rich quick on affiliate links are gone.” — Omar Zenhom [15:10]

• “Use affiliate marketing strategically. Use it as a side income revenue stream, as a bridge while you develop your own offers. That's how you can build a business that lasts.” — Omar Zenhom [15:40]

• “What I'm interested in when I'm building a business is building a valuable asset. Building something that has value in itself, that I can control, that I can sell, that I can be able to leverage and scale and work without me.” — Omar Zenhom [16:30]

Actionable Takeaways

• Leverage affiliate marketing as a secondary income, not your core business model.
• Focus on adding value and building trust with your audience.
• Prioritize high-ticket affiliate products for meaningful commissions.
• Build your own products/services to create a business asset you control and can potentially sell.
• Use the skills you build with affiliate sales—content creation, trust, community building—to transition toward selling your own offerings.

Key Timestamps for Segments

• 03:20 – What is affiliate marketing?
• 05:02 – Is affiliate marketing still viable in 2025?
• 05:53 - 08:26 – Why affiliate marketing isn’t as strong as before: Competition, commissions, ad costs, trust
• 10:30 - 11:58 – Modern affiliate marketing strategies: value, high-ticket items, trust
• 13:00 - 14:14 – Limitations of affiliate marketing and building your own business
• 15:10 - 16:30 – Final word: build real business value and assets

Summary Tone:
Candid, practical, and realistic—Omar provides a “no-fluff” breakdown of affiliate marketing with a firm tilt toward sustainable entrepreneurship and long-term business asset building. He calls out both the pitfalls and persistent opportunities, ultimately emphasizing control, quality, and value creation above quick wins.

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