I am pretty new to affiliate programs. After doing some research, I decided to try out the Amazon affiliates program and the Google affiliates program. From what I understand, you receive a percentage of commission per click turned purchase. It's very different from Adsense, which is a pay per click program, but affiliate programs do offer a more dynamic way to monetizing your site.
One advantage I have seen so far is that your reader will gain a better sense of who you through the companies and products you advertise. For instance, you are able to choose the size, product and appearance of each advertisement you post. On the Blogging Mommies site, I use an Amazon Associates banner that advertises their baby care products and a widget that lists some of my favorite books. On my personal blog, I use Amazon banners that advertise home decoration and gourmet grocery items because I discuss homemaking in my blog. 
Currently, I am in the process of becoming a member of the Google Affiliate Network, which will allow me to advertise a number of different stores and products. While Amazon only enables you to advertise their products, Google opens the door to advertising other stores you might frequent, like Target, Sears, and Williams-Sonoma. I have yet to see a check from either one, but it's definitely worth a shot and it really legitimizes the appearance of your blog.
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