CJ and other networks will ban you if they catch you cloaking, so it is always a cat and mouse game.
Im new too. Just saw in the warrior forum a software to do this with a couple of clicks and looking for some info too. I think it works more for affiliate marketing or sales than for SEO purposes.
@highsteam & @juanle455 - that's a different kind of cloaking than what most others in this thread are explaining. Since you brought it up though I'll give a brief example of what you're refering to.It's also when you are doing affiliate marketing and you want to make sure that you get paid for the sale.
Many times the affiliate link that the sellers provide has your ID in the URL, so anyone could remove it and buy the product without your affiliate ID, leaving you with no commission for a product that you sold.
@highsteam & @juanle455 - that's a different kind of cloaking than what most others in this thread are explaining. Since you brought it up though I'll give a brief example of what you're refering to.
You guys are talking about cloaking your ref links. Affiliate programs typically have really ugly urls when you use your ref code. In most cases it's really obvious where the target page is and a lot of people will just bypass the affiliate link and go straight to the product page. Some people do it because they're suspicious of the ?ref=xyz in the url, others might want to just sign up themselves so they'll get the commission instead of you. To combat that people like to cloak their affiliate links.
For example instead of making backlinks to a clickbank offer with your hoplink "affiliate.vendor.hop.clickbank.net" then on your site "yourdomain.com" create a redirect from "somegreatproduct" to your hoplink. You can make the redirect in your htaccess or do a metarefresh from a webpage, either way though you now have a url something like "yourdomain.com/somegreatproduct" which is much nicer looking url to give out or make backlinks to. (You can accomplish the same goal using a url shortening service like bit.ly but it won't be as appealing a url as using your own redirects.)
Now your prospects have to click on "yourdomain.com/somegreatproduct" to get to your affiliate offer sales page. Once they get there they'll still be able to sign up as a affiliate themselves, but for some reason not as many people will do that as would if you actually had them click on "affiliate.vendor.hop.clickbank.net". For whatever reason, doing this seems to have a positive effect on the click through ratio to a sales page.
So anyway, cloaking your affiliate links as I just explained is a completely different thing than the website cloaking examples given in this thread. The two concepts are unrelated and done for different reasons.
Hope that helps.