As multiple people have said above, sidebar affiliate links almost never work for anybody. You've got to pre-sale the offer if you want them to click and then follow through. If somebody is researching life insurance, chances are they'd find it useful to be able to get a few free quotes from various companies, even if it's just to see how much the premiums might be. That's an easy sell. Just don't pitch products that suck. Readers will see through this eventually.

Also, it helps if you can get in the top of the search results for reviews for a certain product or site.   If you can get on page one you can probably expect to see some conversions.

I also use a plugin called Ninja Affiliate (affiliate link!) in order to keep track of all my affiliate links – as well as get some reporting data on clicks/etc.  It's a pay for plugin, but there are free ones out there like Jeff mentioned that will work as well.

Also, using a tip from Pat Flynn I installed the Pretty Link plugin that allows you to "mask" your affiliate links.   There's a free version that you can use.  It's super easy.  :) 

I do okay with affiliate links; I usually make a couple hundred a month or so from them.  Links in the sidebar generally don't produce any commissions. Frugal blogs aren't the best for making affiliate commissions but I've had decent luck promoting Mr. Rebates and Swagbucks. Those are referral programs rather than affiliate programs but they do make me a little money.

Most of my affiliate commissions come from writing posts about the product. It also helps that I have several blogs and can place affiliate links on the most appropriate blog.

Very similar here.  Write about and have links to what you support and use.  That is your best bet.

Most of my affiliate commissions come from writing posts about the product. It also helps that I have several blogs and can place affiliate links on the most appropriate blog.

Find an item that you already love and talk about how you use it (that has an affiliate).  When you know a product first-hand your readers will know.

Funny thing is, I think we know it as well.

I do agree too that those types of ads generally do better than offering financial products, just from what I know with a few friends that own websites.

The payday loans and debt consolidation also are desperate and can generate some good affiliate cash flow.

Have you had any luck with affiliate links?  If it works, what do you do to generate sales? What has been your experience either way?  

I've found for the most part affiliate links have been "free advertising" on my blog with a few click thrus and no real sales.  The commissions are great (when they happen) but I haven't been actively promoting the merchants besides the ads in my sidebar...thoughts or experience with this?