Yes, that's pretty much it.... You can join and add your website plus your keywords and everytime someone clicks on your link, it costs you 1c or whatever the bid amount is.
As you stated you can join the affiliate program and add a search box to your website. Then you can earn either a set amount per search made, or a percentage $ amount of the search.
I find that PPC advertising is very targeted since you add your own keywords, but you must be sure to only add relavant keywords, otherwise you could waste a lot of money.
I hope this helps 
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