Can someone properly explain link cloaking?

I've been reading a bit about this but I'm still a bit unsure about a few things.

Firstly I understand that masking your affiliate link is a good idea because visitors dont like affiliate links/dont trust them/dont want you get commision.

So, for my affiliate sites I am simply using http://www.myurl.com/freetrial.php
then php page then redirects to the affiliate link.

As far as I'm aware thats all I need to do, but apparently there is more? Also what is peoples opinions on google not liking affiliate links and therefore penalizing your site because of it?

thanks

bump

You want to cloak your affiliate link & blank your referer because when you start making money things get interesting.

1. Some affiliate managers will take the info they have on you (landing page, keywords, etc.) and give it to other marketers.

2. Google can penalize you for too many affiliate links

3. The more anonymous you are and harder to track the better.

And this advice goes for people who are 100% white hat. Keep reading about cloaking and also make sure your sites are registered to someone else & that you blank your referer traffic.