Each month Squidoo pays out it's monthly co-op profit shares.

The profit share is based on the income revenue from the advertisers on the site. Currently the biggest ad revenue is the use of Google Adsense.

Every Lens site has a squidoo rank. Based upon your rank, determines how much percentage of the profit share you will make. The lower your lens rank, the higher your profit share.

In order to make more money from the squidoo profit share you need to get higher ranking sites.

You can accomplish this many was, but the key ingredients are Freshly Published lens and many links from inside and outside of squidoo pointing to your lens.

Links pointing to your lens, whether from social bookmarks, web 2.0 properties, blogs, forums, websites, or other squidoo lens will determine your Lens rank. Fresh Published date and many links will rank your lens into the higher profit share payouts.

If you site sold any affiliate products those commissions will be included but separate from the main profit share.

Squidoo makes it easy for you to use cafe press, amazon, ebay as well as many other store opportunities to display products based upon the Theme or Keywords of your lens topic.

Pick a few "money making" Official affiliate programs and you get a percentage of any sales generated from a click through on your lens.

One of the best ways to make money on Squidoo is to build a lens around a niche topic or theme. Then offer via a textual link, plex Links, or Banners, of an affiliate product that match the theme or Keyword.

If you build a lens about Computers, then add some of your own computer product affiliate links.

Here is a Great Example of this in action:
Hp Laptops

Since the higher ranking lens receive the most payout percentage of the profit share, your goal should be to have high ranking sites.

Keys to High ranking sites:
1) Fresh content and recent published date
2) Links from within Squidoo, ie Lensrolls, Favorites, comments, groups
3) Squidoo system tools such as others Ratings, Lens emailed, added to favorites
4) Links from outside of Squidoo pointing to your lens. Example: social bookmarks, web 2.0 properties, blogs, forums, websites. etc as well as the Linking Digg, Stumbleupon and Delicious. Check out How to Digg

5) Subscribe to your Lens, using the subscribe button. Use Blogines, Yahoo, MSN or Googgle and subscribe to your Lens.

6) Ping your Lens RSS when ever you update it. Go to Pingomatic.com Add your RSS feed.

The Squidoo RSS feed will look like this:
http://www.squidoo.com/xml/syndicate_lens/YOUR LENS URL

Example Rss for this lens:
http://www.squidoo.com/xml/syndicate_lens/How-to-make-Money-on-Squidoo

So get your links pointing to your lens, and keep it updated with fresh content or at least a new published date to get the higher Lens Ranks possible.