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Is this a good business? I would like to hear the good as well as the bad
Focus your niche on things people want, not what they need because not many people buy what they need, they buy what they desire! Go to ebay and check the ebay pulse section and find out what people are searching for and buying the most,and then drill down into that niche so that you are not competing in a general niche where thousands of other people are promoting their stuff.The Lycos top 50 is also another good source to find out what is being searched for the most. When you find a hot niche you will need to milk it for all it's worth! which means setting up a website with articles on the niche you have chosen, plus the affiliate products you want to promote on there as well.you could also set up an autoresponder so that you can catch peoples email address so that you can carry on selling to them even when they have left your site.
You will also need to write some unique articles based on highly searched for keywords that have low competition. Anything under 100,000 competing pages should be fine. Submit them to ezine articles and include your link to your website in the authors' resource box. Try to write at least one article per day and if you do not want to pay for a website then you can easily set up a free blog with either blogger or wordpress - remember to update it daily.
Another way to get traffic to your site or blog is to set up a squidoo page on a specific subject in your niche and link it back to your site or blog. There is a lot more than this to it but if you take it step by step and continue to build around your niche then over time you will start to see the money coming in.