Before I talk about the various ways you can make money with your blog (or website), I thought I should touch on exactly what it means to be an affiliate. A lot of the money making schemes online involve being an affiliate, and what that really means is that you're selling someone else's products for them. With Adsense you're being paid just to drive traffic, but as an affiliate you don't get paid unless the traffic that you are driving actually makes a purchase.
To be a good affiliate marketer, all you really have to do is design a nice-looking website that follows your merchant's guidelines for how to promote their product. You can use the ad copy that is provided by your affiliate, weave whatever the product is into the content of your blog posts, drive traffic to your blog, and wait for the sales to start!
Sure, you could just put affiliate links off to the side, or at the bottom of your page, but if you actually want to make sales you need to be actively talking about and promoting the products you intend to offer. There are lots of different affiliate programs available, so do a little shopping around to find the best products you can offer for the best affiliate percentages.
Just make sure that the products you are promoting actually have value to your readers, since otherwise all you will accomplish is ostracizing your followers and cutting into your otherwise free to reader revenue stream of Adsense.