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Adwords is a very powerful marketing tool. As you saw, you can get instant results and start building your lists and also generate an income BOTH through the commissions you can get through Adsense and also through the sales/commissions you can get when selling/promoting products.
What you really need to pay attention is to WORK with your ads and thus try to establish a good sales conversion ratio, and create as many sites as you can THE RIGHT WAY. Study Figure 3 again.
There are many testing tools on the Net and also many solutions tailored to Adwords. You can find more information in the Resources below.
You will also find the free tool I use for keep track of the visitors sent to all sites. Remember to create a tracker for EACH of the pages you use through Adwords.
Adwords guides you throughout the process and offers all the help you need. You can start with the suggested keywords - when creating your campaign and see how those keywords are converted to leads/customers.
Work with your optin pages, with your autoresponders and also with the keywords again and again until you reach the perfect balance between the money you invest/spend and the money you get through sales & commissions.
Do not make the mistake to just place the keywords, define the price per keyword and then forget your Adwords campaign. For example, you may see that while you placed a minimum bid of $0.50 for 1 keyword, you can lower it to $0.36.
Test your conversions and inspect how the keywords are going inside your Adwords’ account.
And do not stop. As said, there are 100s and 1000s of subjects for which people are looking for through the search engines every single second. Numbers are there and everything is a matter of Numbers!