Using Adwords for affiliate links, am I missing something obvious here?

I've been making a small amount using affiliate programs on my blogs for about fifteen years. I also manage Adwords campaigns for a few clients. I've often wondered if it's possible to combine the two worlds to make money? If I can find a good paying affiliate program and use my Adwords skills to get people clicking the link (and converting) then as long as I'm paying significantly less for acquisition than I'm earning in affiliate payouts surely it's win win?

Most of the specific affiliate program's I am in have strict rules about how I can use PPC but very few say 'don't use PPC'. So am I missing something here? Why isn't everyone following this path?

Look for high paying affiliate niches that have not been exploited
Look for high search volumes with low competition niche that fits the affiliate program
Look carefully at cost per acquisition compared to reward
Count money

Am I missing some obvious obstacle here?

Yeah AdWords doesn't accept direct links. You need to make a content based landing page if you plan on using them. As for the rest of your questions I suggest you use the search bar. Keyword research has been discussed at least 1,000 times here.

The only way you can advertise direct links is with media buys/CPM type ads. Look up advertising methods here to learn more.

To analyze your traffic you need prosper202 and a domain.

Most people aren't willing to spend $200 to just test to see if something works. For the amount of work and testing for $10 - $20 commission isn't worth it. Why spend all that time and money making someone else money anyway?

Thank you, you have answered my biggest question which was relating to direct links (even if I didn't state that very clearly!).

I can create a bounce-through site easily enough, now I just need to find a good niche

Thank you!

gone are the days when you could simply forward the domain to the aff page, i've done that personally and earned some $$ but they shut it off almost permanently..for aff promotion sites they'll increase the cpc prices through the roof and keep you away...if you've some left over money you can check it out but please report back

Ha, wise words! I'll report back, and possibly ask for a dime for some coffee