If you want to earn an ongoing internet based income with affiliate marketing, you'll need to automate both the front end and the back end processes.
Here are a few tried and true secrets to ensure that you'll be effortlessly making affiliate commissions while visions of sugar plums dance in your head...
1. Research and choose the best affiliate products and related affiliate programs which best fit your targetted market and that will enable you to generate the most amount of money for the least amount of effort in the shortest amount of time.
You want to ensure that the "affiliate vendor" (if they offer their own program) or the affiliate network (who manages a variety of affiliate vendor products/services) has a track record for paying affiliates on time with a simple method for affiliates to register (get their affiliate ID/link), track their progress (clicks, sales, etc), and get paid (ie: direct deposit into a paypal account versus receiving a check).
Find products or services that provide high commissions and that have a top notch sales page to ensure high conversion rates (turns lookers into buyers).
Be sure to review the sales page to determine if it entices youto buy the product. If not, it probably won't interest others either. Keep in mind that downloadable products or services offer a much higher commission percentage than a physical product simply because they cost less for the vendor to create, advertise, inventory, and deliver. If you do decide on a physical product, try combining it with a related downloadable product to boost your overall commissions. An example would be selling a gardening implement with a related "how to grow the fattest, juiciest tomatoes" downloadable ebook.
And don't forget that an affiliate product or service with a monthly recurring fee (ie: a gardening club membership site)
provides an ongoing steam of income for efforts you made once. For maximum income possibilities, you should have a combination of "one time cost" and "monthly recurring fee" products that relate to your desired market.
You should also plan to sell additional products to those that have bought from you, be sure that the affiliate network you selected has a variety of "complimentary" products you can introduce. Since people usually get more than one product on a topic they are excited about, this will lock in a continuing stream of money from your initial marketing workd. Although you can transparently offer products to your market from a variety of affiliate networks simulatneously, it will be much easier on you and your ability to stay on top of your affiliate tasks if you have as few affiliate vendors and/or affiliate networks to deal with as possible.

2. Concentrate on ONE product or service at a time to avoid "activity overload".
You must know if your marketing efforts for a specific product or service are making you money or if you are just wasting your time. You need to monitor and modify until you have a steady stream of money from your selected product or service. If it doesn't happen, drop it and move on to another one.
Get all marketing and upsell tasks (ie: squeeze page, pre-sell page, free reports, autoresponder series, etc.) determined and ready to function automatically before moving on to marketing a 2nd, 3rd, 4th, etc.
Automation of each affiliate product or service's procedures allows you to turn your focus to creating additional streams of income without sacraficing your previous affiliate income stream.

3. In the know affiliates ALWAYS capture prospects name/emails for maximuming profit potential
Since the affiliate vendor or affiliate program doesn't provide you with a prospect or buyer's name and/or email address, if you send your prospects right to the affiliate product owner's webpage, you have lost them forever (even if they purchase, you won't know who they are only that you made a sale). Therefore, you won't be able to capitalize on your initial marketing efforts by selling other products or services to those who either expressed an interest or actually made a purchase.
Therefore, prior to sending your visitor to the affiliate product owner's webpage, you first want to send them to a webpage that you have generated to capture their name and email address. This page is called a "squeeze page" or "opt-in" page. On that page you'll need to offer something for FREE (ie: a report, mini-ebook, software tool, newsletter subscription, etc.). Something with VALUE that will entice them to give up the information you want.
Since it is a common fact that a majority of people won't purchase on their first introduction to an individual or product or service, you also need to follow up with the people that have downloaded your FREE item (your list). Since statistics have proven that it usually takes 7 exposures before a prospect is comfortable enough to buy, you must have a process set up to make sure that you follow up in a timely manner.
Setting up an autoresponder with a series of emails that are automatically sent at set intervals, is the best way to make it happen. This email series should be structured so that it helps you to start a relationship as well as establish you as a trusted consultant in your targeted market. This will make it easier for your visitors to buy from you.
By continuing to provide FREE, valuable information to your readers along with additional promotions built into your email series, it will ensure that your readers will continue to stay "subscribed". That they will continue to open your emails and eventually buy one or more of your affiliate promotions.
4. Get the most exposure to your affiliate promotion
There are a number of ways to get exposure for your affiliate offer (both free and paid). In other words, traffic to your promotional offer. The major marketing effort is made upfront. After that, if done correctly, a "viral" effect happens and your marketing efforts will take on a life of their own.
Free ways:
Article writing - Write associated articles and send to article directories. Articles are then picked up by a number of website webmasters, ezine publishers, and others looking for online content. Your article's "resource box" should have a direct link to your promotional "squeeze or "opt-in" page (which can't be removed by the publisher). So, each time someone publishes your article, you'll get free traffic.
Forum participation - Locate related forums and particiapte in the discussions. Ask questions, offer feedback from your experience/educaton (not a sales pitch). Just configure your "signature" to route to your promotional "squeeze page" and Let your "signature" do your marketing for you. Just make sure that the forum offers this type of signature (most do).
Blogging - locate related blogs and make comments, again with a link to your promotional "squeeze page" or "opt-in" page.
Joint Ventures - seek out like minded people in your target marketplace that have "lists" that you can promote to and vice versa. If they present your promotional link to their list, you'll promote their product in your autoresponder messages to your list.
Paid ways:
Google Adwords PPC (or other PPC Services) - Write & publish PPC (pay per click) ads. Each time someone clicks your ad, you are charged a certain fee. Keep in mind that you are charged this fee when they "click" your link, not if they "buy" the product. So, if you aren't managing your PPC allowance closely, you may spend way more money on "clicks" than you'll ever earn on affiliate commissions. Don't forget to read and understand the terms and conditions of any PPC service before you start to use this advertising resource.
If you are too busy or simply don't want to do these activities yourself, you can always/could easily outsource them to be done by others. But, make no mistake, they must be done. As always, its a trade off of your time or your money.

5. Make more money than most affiliates promoting the same product or service
Once you have established a solid reputation as an affiliate who can close the sales, you can ask for a higher than normal commission from the merchant. Just contact the affiliate merchant and negotiate a larger percentage of the pie.
Since the merchant doesn't pay you anything unless you've made a sale, they have a zero risk investment in you. If you have been a producer with them or can demonstrate your success with other affiliate promotions, many will work with you. Since less than 5% of their affiliates ever produce money for them, they surely don't want to lose one that does. Just be reasonable in your request.
Use these tips and you'll soon experience a HUGE increase in your affiliate commissioins in no time flat.