1. Find an affiliate product to promote
2. Research a low competition keyword that you feel will bring some sales (test with PPC if you like)
3. Register a domain including main keyword you are targetting and install wordpress.
4. Write a article that leads the reader to vist the affiliate offer. Set this as the static front page of wordpress.
5. Modify your template so that the affiliate offer can be seen on each page. A simple way to do this is to use the text widget.
6. Install the following plugins:
Global Translator (This is soooo good for getting extra traffic)
All in one SEO - after installing this enable permalinks
Statpress Reloaded - this will show you your traffic
7. Create a few different categories that are related to the product you are promoting, or that the target market would be interested in. Then use UAW and AMA free service to drip feed articles. I also use caffeinated content (this is not free) which is great as it lets me insert more affiliate links through all the generated posts, but the author appears to have stopped supporting it so maybe look at alternative plugins if you want to pay for something.
8. Build some links to your index page with the keyword you chose earlier as the anchor text.
Like I said, I have just started doing this but I am surprised how quick I have got traffic. The global translator turns 1 page of content into 41 pages in different languages which gets you all sorts of extra keywords and google seems to love it.
The great thing is that the whole process only take a few hours. I am making lots of these, putting them on seperate IP addresses then interlinking them. So far so good.