Can someone please explain this system to me?
I currently use Google Checkout and Google Base(a little).
I have read what is written on the site about it.

Does anyone use it?
Is it worth it?
What are the + and - of the whole system.

Thanks

Join Adwords from your googleaccount

Afterwards link your adwords account to your analytics account to get adword data for your site.

Adwords is a click traffic system , you get charged every time someone clicks an Adwords add

Google puts banners on search ,certain sites and links in blogs ect.

You have to setup a campaign with the search words or add words you want to use for example

"Adjustable Spanners"
"Left Handed Spanners"
"Discount Spanners"

and the add itself should include relevancy to your add words , the add may read like the following

Adjustable Spanners Discount
Discount Left Handed Spanners
Clearance Sale Premium Spanners

If the words are not very popular and keep them highly relevant to your add then the click price will be kept low.

You can cap your campaign for as little as a dollar a day

How well does it work? Not very well in terms of how many clicks get a sale , you need 50 to 200 people on average to buy one thing. So if you sell low grade and low volume goods you can lose out using ad words.

One strategy is to tailor your adwords to your best line of products with very specific to that item add campaign and drive highly relevant buyer directly to the item so he can click and buy.

+ you will get traffic boost to your site
- its only efffective as your site and products to generate sales
- it can be very un-cost effective for low grade product items with single sales