The right affiliate can certainly generate good revenue, I have one or two affiliate sites with feeds from Affiliate window, its not bad. Affiliate feed may as well be part of the new project I am looking to set up but the project itself is much larger than just an affiliate outlet, it will be basically a shopping site where merchants can add their product, because there will be many merchants with competing products the site will have a price comparison facility, I can then supplement product from the merchants with affiliate feeds, I am thinking of a similar site to this
http://www.shopzilla.com/
I am currently negotiating with a company in US with the technology.... we will be finalising the negotiation next week, they still have not come back to me with the cost (this is making me thing they will be very expensive) I will update this thread on how I get on with after our conference call next week.