Affiliate marketing, like so many features of e-commerce, is in a state of extreme flux. I think the field is beginning to move away from its early concept as offering merely a vehicle for free or very low cost advertising for merchants. In this model, the affiliate has been viewed as a creature of low degree, worthy of no respect to be paid only grudgingly, if at all. Many merchants still harbor this mindset.
There is, however, a growing cadre of affiliates actually making a decent, and, in some cases, a handsome living as affiliates. This can be attributed to the fact that there are emerging a significant number of merchants who have adopted a business model wherein the affiliate is seen as a true partner, to be well compensated and well supported. Affiliate marketing is an important and integral part of the merchant's business plan.
One of the tasks in operating as an affiliate is to identify these affiliate friendly merchants as well as product categories that convert well on the internet. Personally, I stay away from CPM, PPL, etc. in favor of selling products of various types for a commission. This has worked well for me.
As mentioned, focused selling works. Simply scattering banners around your site will not. Affiliates who operate as though they are value added resellers are much more likely to succeed. It takes a great deal of hard work, experimentation, patience and just plain luck. All of the SEO skills you can learn on this and some of the other boards need to be put into play.
