Passive income idea - Affiliate Marketing,How it works?

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Many have came across the word affiliate marketing at least once in social networking sites.Do you ever thought of starting an affiliate marketing ?Many thinks to start,but they don't have enough knowledge and only few can ready to teach about affiliate marketing. I am showing you how it really works. Consider a scenario that a product is launched new to an e-commerce site.It needs promotion first and fore most of all.So for the promotion idea affiliate marketing was introduced. Most of the e-commerce site have affiliate marketing facility.There will be a separate affiliate marketing link for several products.Your account will have unique and the only task it to post the link anywhere in internet,where you feel more traffic is possible.You can make a blog and monetize and even you can fix affiliate links there.Probably visitor to your blog click the link if you were lucky enough. In that you can earn by two ways. First method is,you will get money according to number of clicks. second method is,you will get some commission for each and every sales.Mostly the commission would be 2% for most of the products. For example a brand 'A' phone costs 100$ means you will get commission of $2.It's for only one sale. For 1000 sales imagine the profit . And its for only one phone.If you share many products like laptops,LED tv's,Play station then just imagine the earning. Its one of the best passive income from online.You were actually earning money without doing anything (except sharing). I tried to explain in easy term for better understanding,anything else just comment below. What is your opinion on this?