After reading the offer page in the affiliate network, and the merchant's sales letter, you'll have a good idea of the main keywords to bid on. Let's take this research from an actual campaign (only the brand name was changed) so you can see how it's done.
The fictional product is Happy Sleep. The offer page said, "It's a 100% all natural insomnia treatment that helps you fall asleep faster and sleep better than other sleeping aids. Use it with confidence as it was developed by a doctor and clinically tested." It then went on to list several ingredients.
So that led me to research five keyword phrases, which would eventually become the ad groups. The keywords phrases shown underneath each Ad Group Name below, are the highest volume keywords for that phrase. They are also the keywords that I plan to bid on, so I'll need to have those keywords in my ad titles and ad copy.
Insomnia Treatment (Group 1)
insomnia, insomnia treatment, cure insomnia, natural cures insomnia, treatment insomnia, treatment for insomnia
Sleeping Aids (Group 2)
sleep aids, sleep aid, natural sleep aids, natural sleep aid, all natural sleep aid, natural sleeping aid, natural sleeping aids, natural sleep aids that work, sleeping aids
Fall Asleep (Group 3)
asleep, fall asleep, go sleep, fall asleep fast, falling asleep, ways fall asleep, fall asleep faster, fall asleep quickly
Sleep Better (Group 4)
sleep better, get better sleep, better sleep, tips sleep better, how to get better sleep, get better night sleep, ways get better sleep, sleep better naturally, sleeping better, better night sleep, getting better sleep
Happy Sleep (Group 5)
happy sleep, happysleep, happysleep.com, www.happysleep.com, www happy sleep com, www.happysleep com, www happysleep.com
How important is bidding on the domain name? Well, depending on the source you cite, over half of all search is typing a domain name into the search engine.
You would think people would type the domain name into the browser's address bar. Nope, they go to Google or Bing and type the domain name in there. Then click on the search result. Yes, I know it doesn't make sense to you and me, but it's what the average person does and you can't argue with the facts.
So, if the offer has no restrictions and the WADS doesn't mind, bid on the merchant's domain name in a variety of ways. Bid with and without the www. Put spaces in-between the .com and www including all sorts of variations.
But don't worry about creating ads and bidding on everything to start. You just want to try two ads in a single ad group - in this case the Insomnia Treatment (Group 1) - to start and see if the offer converts.
Later, if the offer shows signs of life, write at least two ads in each of the remaining ad groups. Rotate the ads equally to find a winning ad. Then start bidding on the ingredients in the sleep aid. Put each one in its own ad group inside the existing campaign.
I believe that the only courage anybody ever needs is the courage to follow your own dreams.