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I have an affiliate site and I am pretty satisfied with the way it's going. I am considering developing about 25 more sites. My question is, what is the best method to host these sites without having to get a dedicated server?
Welcome to Webmasterworld :)
Take a look at reseller accounts - one host, one account, one server, one payment - many domains.
Should be what you are looking for.
What is the advantage of spreading them around?
If you'll use different hosts, then it will be impossible for one host to foul up everything.
Some people even go so far as to be sure that their hosts are geographically separated, for the same reason. Disaster avoidance.
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