I think perhaps you might be confused. You hear a lot about building lists, but rather than being a "downline" in the MLM sense, this list is made up of people who have opted in to receive periodic information from you, the affiliate marketer. Then, when you find a great product, that list is one source that you use to promote the product. These may be information products that you have created or they could be something someone else has created. Or it could be an actual physical product.
Other ways affiliate marketers generate interest in a product are through web sites, blogs, articles, and advertisements such as a classified ad or a Pay Per Click ad.
As to the other questions, maybe someone else here can answer better than I can. I'm still trying to learn this affiliate marketing stuff, for the most part. I'm finding a lot of great information on this and other forums, though, as well as through the programs I am learning from.
Grady
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