URL masking: Often, you’ll find that affiliate links are a real, million character eyesore. It’s likely that your links will look like Merchant.com/dlfjlfjlfjdskljdfgimmeallyourmoneyalajdlkaf2131032klfjfdjldsjf. And let’s be honest, few people are going to want to click on that. URL masking is therefore when you create a prettier, cleaner “vanity URL” that makes your links more clickable. Some people use bit.ly, which has tracking purposes, or the WordPress Plugin Pretty Link.
In electronic commerce, means of achieving greater market penetration through websites who target specific groups of internet users. For example, Amazon.com (which sells books, electronics, pharmaceuticals, toys, and many other items) has thousands of affiliated interest specific websites from where the visitors can reach products offered by Amazon. The entire sales transaction takes place at Amazon's website which is equipped to handle the complete online payment acceptance process. Amazon passes on a percentage of the sold item's price as commission to the affiliate website from where the sale originated.
Developing and monetizing microsites can also garner a serious amount of sales. These sites are advertised within a partner site or on the sponsored listings of a search engine. They are distinct and separate from the organization’s main site. By offering more focused, relevant content to a specific audience, microsites lead to increased conversions due to their simple and straightforward call to action.
But beyond these specific points, promoting affiliate products on Amazon really involves the same ground rules that apply to affiliate marketing in any form or on any other site or network. That is, know the products you’re promoting, be honest in how you represent those products, and give people enough information to make an informed decision about the product.
It’s also an incredibly low-risk marketing strategy with a high ROI. Most other promotional channels require some kind of payment upfront and there’s a chance that it may not work. In these cases, you’ve lost some precious marketing budget and not gained anything in return. However, with affiliate marketing, you’re only charged once a sale is confirmed. You can define the payment terms as 60 or 90 days to allow for refunds or processing issues. An affiliate agency will generally charge a nominal amount to cover overhead and then leverage their relationships to build your affiliate network.  This format protects both parties cash flow and ensures you’ve already received the money from the customer before you have to pay the affiliate. It’s a performance-based method that rewards top-performing affiliates who refer genuine customers.
So an effective affiliate marketing program requires some forethought. The terms and conditions have to be tight, especially if the contract agreement is to pay for traffic rather than sales. The potential for fraud in affiliate marketing is a possibility. Unscrupulous affiliates can squat on domain names with misspellings and get a commission for the redirect; they can populate online registration forms with fake or stolen information; they can purchase adwords on search terms the company already ranks high on, and so on. Even if the terms and conditions are clear, an affiliate marketing program requires that someone be monitoring affiliates and enforcing the rules. In exchange for that effort, however, a company can access motivated, creative people to help sell their product or services to the world.
Some commentators originally suggested that affiliate links work best in the context of the information contained within the website itself. For instance, if a website contains information pertaining to publishing a website, an affiliate link leading to a merchant's internet service provider (ISP) within that website's content would be appropriate. If a website contains information pertaining to sports, an affiliate link leading to a sporting goods website may work well within the context of the articles and information about sports. The goal, in this case, is to publish quality information on the website and provide context-oriented links to related merchant's websites.

If you’re primarily going to be promoting Amazon products it’s important to choose a set of products that has a relatively high price point. After all, it’s hard to make a solid income off of promoting $1-5 products, since the commission on Amazon is so low. Items that have a higher price point, like high end appliances, furniture, BBQs, blenders and juicers, or bikes can net you over $50 a sale at least.
Now most affiliate programs have strict terms and conditions on how the lead is to be generated. There are also certain methods that are outright banned, such as installing adware or spyware that redirect all search queries for a product to an affiliate's page. Some affiliate marketing programs go as far as to lay out how a product or service is to be discussed in the content before an affiliate link can be validated.
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