Text links are not as popular as banner ads with affiliates, according to data in the 2011 Affiliate Summit AffStat Report, where over fourteen-hundred affiliates were surveyed, we asked, “What are your preferred link types?”
A text link is simply a link made out of text on an affiliate site.
So, you would select a keyword or phrase of content on a site and make it into a link.
For instance, if you are writing about health insurance, and you have the phrase “affordable health insurance” within your content, you could turn that phrase into a link to eHealthInsurance:
Text links are really effective, because they are relevant to the content your visitors are reading, and since they've already indicated that they're interested in that subject, a link to more information is available to them at just the right time.
But this isn't just my opinion – this is based on my experience as an affiliate since 1997.
Basically, if you're running a content site, the text link will likely be the best performing type of affiliate link for you.
If you're not clear on how to create a text link in WordPress, I created a video with an example of how to do it: How to Insert an Affiliate Link in WordPress