Get My Free Cheat Sheet on 3 Steps to Earning Passive Income Online –
Course where I learned affiliate marketing with Adwords, also teaches other traffic methods:

Now lets get to Adwords keywords.

Don’t put in the main keyword for your product. For example, if you’re promoting clickfunnels, dont’ just type in clickfunnels as a keyword. you don’t know what people searching for clickfunnels are actually looking for. They could be looking for clickfunnels login, or another clickfunnels product. So to make sure that your ad only shows up for people that are specifically searching for what you have to offer, choose longer and more specific keywords such as ClickFunnels free trial.

There are different kinds of keyword matches you can do in affiliate marketing with adwords (pay per click).
There are exact matches, so your ads only shows up when someone searches for the exact phrase, formal shoes. If you only want your ads to show up for exact phrase you should indicate square brackets around the phrase.
Phrase matches broadens which search keywords your ad will show up on. These are indicated by speech marks. If someone searches for a phrase that has a slight variation to your phrase, your ad would show up. For example your ad will also show up if someone searches for black formal shoes or forumal shoes for men.

Modified broad matches are indicated by the plus sign. So if you indicate +formal and +shoes, your ads will only show up for search phrases that have both the words formal and shoes. If you only indicate +shoes, your ads will only show up for search phrases that have the words shoes, but they do not have to have the word “formal”.

Broad matches are extremely broad, and your ads can show up for a wide variety of search phrases. So I recommend that you go with the other match types and try not to use broad matches because your ads might not be showing to your target audience.

I personally use a lot of modified broad matches. These are great if your affiliate product name is quite unique, for example ClickFunnels or Builderall. but If you’re promoting a book like expert secrets, putting in a mtch for +expert and +secrets is quite vague as it could be a match for searchers that aren’t looking for the Expert Secrets book. One way to get around this is to put +clickfunnels +expert +secrets, or you could do a phrase match.

Lastly, you can create the ads in Adwords. You need to put in 3 headlines, and 2 descriptions. Google generally recommends that you create 3 different ads, and they will optimize based on the ad that does best. So create 3 different ads testing different headlines or descriptions. You can search google for your keyword and see what ads come up, so you get some ideas on what ad copy is working.
Another thing you could do with the ad copy is to pre-qualify. For example, a lot of people might be searching for your affiliate product, but if the price of your product is quite high say $497, you might get a lot of people clicking on your ad but no sales because the price is quite high. So you could add something in your ad copy like, starting from $497, so people who aren’t serious about buying won’t click on the ad. Only people who are really interested will click on your ad and these are the target audience you want. Remember, you pay Google for each click to get, so you also don’t want to be paying Google for low quality clicks that don’t generate sales.
So when you’re done, click save and continue.

Remember I said to save 1 keyword for 1 Adwords ad group? You should end up with lots of ad groups. As your campaign continues to run, you’ll see which keywords and ad groups generate sales and which don’t. Then you can increase the budget on the keywords and ad groups that generated sales, and turn off the ones that aren’t making sales. This means you focus your budget on the ad groups that are making sales.

You can also look at the demographics that your ad is being served to. One useful tab is the geographic report which shows you who Google is serving your ads to.

So that’s about it for Adwords. Adwords is about testing and optimising your ads for the keywords that are generating sales for affiliate marketing. Don’t be too quick to cut an ad if it’s losing money at first. Look at it as you’re investing in data and give your ads some time to gather enough data for you to make a meaningful conclusion about its conversion rates for sales. That’s affiliate marketing with adwords.