Google AdWords ( ) are small text ads which are shown next to Google's search results, as well as through Google's AdSense affiliate program.

You can advertise on Google AdWords, and the charges are based on the number of clicks that your ads receive, as well as your "bid" which is the amount that you are prepared to pay per click (higher bids usually result in more traffic).

Some (but not all) affiliate programs' rules will allow you to place your affiliate link (coded with your ID) directly in Google AdWords. Alternatively, you could simply pay to advertise your own site (containing affiliate links).

Important Note: Google has recently (2005) changed their rules making much harder to directly place affiliate links in Google AdWords. This may, or may not be a problem that affects you depending on which affiliate programs you use, and which keywords that you choose to advertise on. However, you should be able to completely bypass this problem by advertising your own web site (containing affiliate links), rather than placing the affiliate links directly into the ads.

Of course, paying to advertise in Google AdWords is only worth it, if you can do so at a net profit. This may be possible for those pay per sale affiliate programs with relatively high commissions and good conversion of visitors into buyers. Here are some (fictional) examples which illustrate the point:
(Of course your actual numbers for the may be completely different)

Imagine that you were paying $0.25 per click, for each visitor from the search engine:

If 0.1% of the people clicking on your ad, were to buy the product and generate you an affiliate commission. Then, provided that you make an affiliate commission of at least $250 per sale ( $0.25 X 100 / 0.1 ) - then you'd make an overall net profit.

If 0.5% of the people clicking on your ad, were to buy the product and generate you an affiliate commission. Then, provided that you make an affiliate commission of at least $50 per sale ( $0.25 X 100 / 0.5 ) - then you'd make an overall net profit.

If 1% of the people clicking on your ad, were to buy the product and generate you an affiliate commission. Then, provided that you make an affiliate commission of at least $25 per sale ( $0.25 X 100 / 1 ) - then you'd make an overall net profit.

If 2% of the people clicking on your ad, were to buy the product and generate you an affiliate commission. Then, provided that you make an affiliate commission of at least $12.50 per sale ( $0.25 X 100 / 2 ) - then you'd make an overall net profit.

Here are some additional resources to help you with Google AdWords:

Ad Word Equalizer
Become A Super Affiliate Overnight! Software Finds Most Profitable Search Terms And Products For You.
Ad Word Generator
Software that Instantly Creates Profitable Google Adwords.
Mastering Google AdWords
Optimization of Google AdWords Campaigns.
Google Adwords Secrets Revealed
The Secret Fundamentals Of Google Adwords. Shoot Your Ad To The Top Of The List, Reduce Cost, And Earn.
Google Adwords Insiders Guide
Amazing Secrets of Google Adwords Revealed.
Google Cash
Google AdWords 123

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