I need a "for dummies" explanation on cloaking

ok, we've gathered some great info on cloaking for seo purposes... and thanks everyone who chimed in.
my next part of this puzzle though is how this works with affiliate links. whats the real difference between cloaking an affiliate link and just using a 301???
 
I have been looking for many thread about cloaking. But I want to know why cloaking site rank actually? What is the logic behind it? If you show different version to Google, then why Google rank that website?

Can anyone please explain it?
 
Site A = BH site
Site B = WH moneysite

301 Redirect
traffic lands on Site A and is redirected to Site B
search engine bots land on Site A and are redirected to Site B and spider the content of Site B

Cloaking
traffic lands on Site A and is redirected to Site B
search engine bots land on Site A and spider the content of Site A

In a nutshell:
Site A is keyword-optimized and it ranks high for certain keywords. The content may not be readable or usable to get sales.
When a visitor clicks on the results in the search engines it never sees Site A but lands directly on your optimized sales-page on Site B.

Excelent explanation!! :)
 
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