The interesting thing is that many people do believe that affiliate marketing is too saturated and incapable of making the kind of money it did five or six years ago. Yes, it was a lot easier back then, but using today's tools and guidance you can still make a very nice income from affiliate sites and products.
If you consider that Adwords type advertising, and Internet companies such as Clickbank did not exist seven or eight years ago you will understand that the affiliate market is easier to penetrate than it was years ago. With Adwords, and Yahoo Marketing, for example, you have the ability to reach a worldwide market within hours. You can literally sign up for an affiliate product and advertise it worldwide within hours. Of course you need to have the capital to advertise it but it is easily accomplished.
Since it will cost more to advertise you really need to lay out a plan and budget before you get started. One easy way is to determine how much you can afford actually lose. I know it seems counter intuitive but it's the best way to plan a pay per click program. Research your product thoroughly by using keyword tools from Google, Yahoo. MSN and Wordtracker and independent keyword research service. Remember if you break-even the first time around you may only need a slight tweaking of your campaign to turn a profit.
Be very careful though. Sales are not final until the guarantee period has ended. Let's say that you find the perfect product to sell on ClickBank. ClickBank mandates that the seller provide a refund for any reason for 56 days or eight weeks. This means that there will be some "buyer's remorse," so that nice 50 or 60 % commission comes out of your account.
So in answer to the question "is affiliate marketing Dead?" I would answer with a very strong no. Affiliate marketing is alive and well and you can make a good income from it you just need to know how and what tools to use.
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