I have read through this forum and it gives some really good tips. Thanks Danny!
I have been doing Adsense (using bigger authority sites) for quite some time now, however since Adsense doesn't seem to have a problem with banning anyone, I want to start doing some Amazon stuff in order hedge myself in case Adsense goes down.
I have one site that I launched in July in the electronics niche that seems to be doing pretty well. July ended with about $120 in income, and August is looking to be around $400-$450. The idea was to create really good quality reviews that really outline the pros and cons of a product. I now have about 20 reviews (with a couple of buyer's guide articles to help out). Each review is between 1000 and 1500 words, which allows the pages to rank really well on the long tail terms. I'm on the 2nd page for my major homepage keyword, but my major focus has been driving links and traffic to each of the product review pages.
To launch, I wrote a couple of reviews myself, but since then have turned to outsourcing and pay about $10 per review. For link building, I've been doing everything out there...from blog, web 2.0, articles, pyramids etc. I've found that the more links from your review into Amazon, the better, but in natural places (not stuffed).
Another thing I also found useful was to use Event tracking on all of my Amazon links. That way, with Google Analytics, I can track at which point of entry people are using to get to Amazon, and on which products. If they used the link on the image, buy it now button, reviews link, or other text links, it makes things really useful in helping me decide how to reorganize product pages. I also use this tracking (and look at products sold) to determine which products need to be pushed with more links. Some products have higher conversions than others, and being able to target these individually has worked out very well.
It is still early, but i'd like to get to the point where I've got around 5 authority sites each pulling in around $1000+ per month with about 100 reviews each. Currently I'm only getting about 100 UV daily traffic. If I could just double this, I'd be at my goal for just this one site.