This article geared towards advertisers content publishers see

India (SANEPR.com) July 21, 2008 -- AdWords is a pay per click program in which ads are targeted to search results and website content with advertisers paying for each click received. Where your ad appears depends on how much you bid on certain keywords and how relevant the ad is to the search. In contrast to other types of affiliate programs, you do not pay a percentage of the sale you make, but pay a few cents (the minimum is five) for every visitor sent to your site. One, The more you give Google to work with, the better targeted your ads will be, and therefore the more successful.
The other benefit is that general keywords (for example, hosting) receive more bids and therefore cost more than more detailed phrases (Linux web hosting 30GB bandwidth / mo). Use this to set up a small budget to test the program and learn what works for your specific site. Be sure to take advantage of the free statistics Google offers to perfect your campaign.

This approach has several advantages. First, using the same technology that drives Google’s search results to deliver your ad results in your message appearing to only the most interested potential customers. Also, instead of having to recruit affiliates, your ads begin appearing immediately across Google search results and its network of AdSense publishers.
The key to success with this program is to be as specific as possible. Once you are logged in to your AdWords account, you can see estimates of the number of clicks that certain keyword combinations will bring. There are two benefits to being specific. One common technique is to sign up as an Amazon Associate (their free affiliate program) and make ads on AdWords using their links as the destination. Essentially, you are paying a few cents for every click you send to Amazon, but are receiving a percentage of every purchase made on the site.
Moreover, you can use Amazon’s ad copy and product titles to make your ad. If done correctly, this alone can be a successful business. One, The more you give Google to work with, the better targeted your ads will be, and therefore the more successful. The other benefit is that general keywords (for example, hosting) receive more bids and therefore cost more than more detailed phrases (Linux web hosting 30GB bandwidth / mo). Use this to set up a small budget to test the program and learn what works for your specific site. Be sure to take advantage of the free statistics Google offers to perfect your campaign.
Of course, even if you don’t have a site you can still take advantage of this program to make money. One common technique is to sign up as an Amazon Associate (their free affiliate program) and make ads on AdWords using their links as the destination. Essentially, you are paying a few cents for every click you send to Amazon, but are receiving a percentage of every purchase made on the site. Moreover, you can use Amazon’s ad copy and product titles to make your ad. If done correctly, this alone can be a successful business.
There is a lot more to explore and experiment with, remember: advertising is an art, not a science , but by now you should have a general idea of how AdWords works. Good luck!