Adding an affiliate schem to a website - any recommendations?

[Steve-H]

Has anyone setup an affiliate scheme on their website? By this I mean actually offering a commission based scheme to websites wanting to send you traffic (i.e. Not being an affiliate but actually getting other sites to sell your products).

Any recommendations or comments from those of you with personal experience of doing this would be appreciated.

From what I understand I have two main options -
1) Join a network along the lines of trade doubler and pay them a cut of all commissions paid but benefit from the links to their existing client base and their assistance managing the back office.
2) Buy ready made software and install it on my site/server and manage and market the process myself.

I am leaning towards option 2. Anyone been down this route before?

Thanks.