As a little experiment I launched a site to see if it was possible to , not only as an affiliate make money from affiliate marketing, but also as a merchant run a site that is 100% marketed via affiliate marketing.
Initial month hooked in about $250 in sales, by month 3 it hit $4000, month 5 $10,000 and since then hovers between $10 and $12k in sales everymonth.
Each month 60% to 70% of sales come from affilate partners. So in a nut shell yes they can make money, and a merchant can too.
Cheers
Chris
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