Have I got the steps right?

I've been doing what most people might have done when they were noobs, and that is reading too much and taking NO action.
I've been looking around a lot and as a result I seem to be a bit confused now. I have decided to stop lazying around at start doing whatever I understand, take action and learn from the experience I get to understand how things are supposed to be done the right way.

Okay, now I have planned to make a blog and try to sell a product through it. What I want to be clear about is, what steps I am supposed to follow in creating a blog.

1) Find a niche and product that I want to sell.
2) Search for keywords and buy a domain.
3) Setup up hosting and Wordpress.
4) Post articles using keywords.
5) Submit website to directories.
6) Social bookmarking
7) Link building/Web 2.0/ Link wheel
8) Keep repeating steps 4-7

I hope I'm not missing out on anything?

How many keywords should I be looking to compete?
As for the social bookmarking and link building, I was thinking of using a couple of tools from the download section. I hope it works good enough to get me started.

Any tips that could help me?

Those are the basic concepts. You'll find many of your own personal tweeks along the way that work best for you.

I was just listing the basic things that I need to do. I was just putting down the steps to make it appear easier. I'm still looking for a decent/easy niche to start with.

No I won't be selling anything directly. I'm trying to earn from commissions.

That strategy is pretty solid. When I started affiliate marketing that's basically where I was at and from there you pick up things, drop inefficient things and basically learn what works for you over time.

BTW I started with clickbank products and I think that's a great place to start affiliate marketing as they make it pretty easy.