Think very carefully before making a squidoo lens.
For best results carefully choose a RELEVANT KEYWORD for your subject you wnt to write about.
This keyword should have under 100 thousand results on a Google Search. Type it into Google's search box to figure this out.

The Title of your Squidoo lens MUST have the keyword in it (preferably as the first word).
THIS IS REALLY REALLY IMPORTANT !

Search engines pick up keywords primarily from the titles and first three keywords (tags) that you use. Then these are compared to the introduction paragraph and if the keywords are in there then the site gets rated higher. (What you are trying to do is get to page 1 of google for your keyword but that is discussed in another of my Squidoo lenses.)

Then take a piece of paper and write out all the midules you want to use and the order in which they should fall on the page.
Are you going to use Photos ?
Videos from Youtube ?
an RSS FEED ?
Will you use prewritten articles or write your own ?
All these are things to take into account before you even start your lens.

Squidoo likes Charities.
If you are a Charity collecting lens or donate to any of the charities in the PAYMENT Options section (grey part of page) then your lens could be more highly rated.
RATINGS are what makes a successful lens.Lenses that are highly rated get more direct traffic(visitors) from Squidoo. Google also likes charity lenses. (But I don't think it know when a lens donates all or part of its income to charity)

Lenses make money like this :
1 PPC (like Adsense) from the small ads placed throughout youe lens (don't try to fool Google with really high paying and irelevant keywords - you'll just get ignored !)

2 - Payment from Amazon and Superstore and other money making modules these are split with Squidoo on a mystical basis known only to the Squid Mighties (actually it depends on your rating)- small amounts but they do add up.

3 Ebay - if you add ebay modules and a sale is made from one of those modules then ebay splits their commission with you and squidoo - this can be a LOT of money.

4 Affiliate Sales ... a tricky one this - Squidoo doesn't seem to mind you making affiliate sales as long as -
The lens is not specifically made for affiliate sales. - So it must have REAL and unique content that stands on its own. If you try to make affiliate only lenses then this really is SPAM and you'll get junked. Yah Boo So There !

Altogether the Squidoo system is really good and there are good guidebooks from people like Squiddo Queen and Tiffany Dow - who show you exactly the best methods of monetising your website (lens).
BEWARE of paying lots of money for ebooks on squidoo (the ones I mention are good)
There are HUGE resources on Squidoo itself - either in the FAQ section or at SquidU.

SquidU is a Forum basically where squidoo lensmasters meet and discuss each others lenses and methods of making their lenses better.
And how to not fall foul of the rules.
You really MUST visit SquidU if you want your squidoo lens to succeed.
There is a BIG SECRET to making a Squidoo lens - and that is to try lots of fine tuning on everything inside that lens and then promote the heck out of it on social websites like Facebook and Myspace.
But really you must have good original content and a truly INTERESTING lens.

Do NOT expect immediate results.

Lenses sometimes take several weeks for search enginges to spider and promote. Do not be discouraged by this. Just keep tweaking the lens and especially the TAGS for the lens and you will eventually get there.
Try going to Google or Yahoo and look at their keyword suggestions for ideas on your particular lens.
Please don't ask me for keyword suggestions for your lenses !

For some really helpful lenses on Squidoo lensbuilding look at lenses by
Captain Squid
Fluffanutter

and one or two by me ... fotos4web

(Please read the rules before you begin )