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DXL - 5:40 pm on Apr 25, 2007 (gmt 0)
So even knowing your target audience isn't enough, because most targeted affiliate ads may still not generate revenue. I'd say the 1% is an accurate assessment, its about testing the waters until you find a solid program, and then experimenting with how you promote it (i.e. written product reviews on your site, recommendations with a link).
In the last five years, I've come across only two affiliate programs that produced results: one for web hosting that I have to push myself, and one for products of interest to visitors of a hobby site of mine. I've experimented with countless programs that appear to have sweet payouts, but with absolutely no conversions.