Great article in favour of Affiliate Marketing.

What I liked about it:

This increase has been achieved by focusing very tightly not on recruiting thousands of new affiliates, but by identifying a small handful of super-affiliates, or strategic partners.
One approach to take when searching for top affiliates is to look for good content-driven sites. Many top affiliates have websites that are content-centered, instead of ad-centered. These affiliates will attract traffic and qualify it through their website and content before sending it on to you.
The objective is to partner with happy affiliates. Someone who is satisfied with the program and your company is going to send you much more traffic, and put more thought into their own campaigns, than someone who feels they have been misled.

When launching an affiliate program, give yourself a 12-month breakeven horizon. It takes time to build a reputation for having a good program, and to recruit good affiliates.
Treat your top affiliates as valued strategic partners. Your top few affiliates may have the potential to provide you with a significant proportion of your total revenues.
Be generous with your commissions. Top affiliates make their living as affiliate marketers and invest their resources only in programs which offer generous terms and are well managed.
Provide affiliates with the marketing tools they need in order to effectively promote your products or services. These may include text links, banners, content pages, data feeds and even complete stores delivered by javascript.
Give affiliates access to detailed reporting on their performance and sales. Top affiliates will want to track the ROI of links from their pages...from exposures, to clicks and through to sales.
Listen carefully to top affiliates when they critique your landing pages. Many professional affiliates will have deep expertise in what works and what doesn’t.
Be available to top affiliates by email and phone. You should treat your top performers as important strategic marketing partners. Being available to them helps build that kind of relationship.