How do I find an ethical, FTC/FDA compliant affiliate network to promote my dietary supplement?

I would start up my own network. You can list the program with some directories that will require affiliates to get approved before joining. This way, you can put in place some things like requiring them to have a website that you can go approve first - and still get bigger exposure then trying to scamble around for affiliates yourself.

As you know, no matter what network you go with, you will always be at risk for any actions of your affiliates. The best you can do is provide marketing tools, and not permit affiliates to change or add anything without your approval. Focus on FTC/FDA risk management, and the ethics portion will take care of itself. Some affiliate networks, for example Commission Junction, have similar companies as yours which permit only banners or links on affiliate websites, along with very strict and legally binding promotional constraints.

i thought you were right, but i just saw this guy (slappytheking) make a thanks in another thread, and he only has 5 posts.

the thanks button should be located in the bottom right corner of someone's post.

Really all your going to be able to provide is EPC (earnings per click). But if you can get feedback from those that promote and they can say this banner had X views and X clicks and if the site was targeted or not then that at least gives a little more insight. Also if you can get a mailer to tell you their open rate and if the list was targeted or general and the amount sent, then that would also provide more insight. By having all the above info, then it's much easier to have an idea what the project might make.

You also need to test creatives (ads), not just landing pages. One creative could generate far more clicks than others, just like one landing page could convert much higher than others.

As far as CPM costs. This is going to vary by the affiliate. For example lets say that my smallest test makes on average around $500 if it's a good project. Then I'm going to want around $500 to do a CPM test.

I would seriously think about testing a free trail if you can afford to do it. I've seen free trials blow away other offers that require full payment regardless what the return policy was. It's typically easier to make a sale when your just charging S&H and then bill the purchase price 30 days later unless they return, then the purchase price + S&H upfront. Also if the conversion is higher you can pay the affiliate less.

This is how affiliates look at things...

Your products makes an affiliate an average of $250 each time they promote. A competitors product makes $500 on average. Well, I'm not going to run your project unless you double the payout.

Lets say you tweak everything and now your product makes $750. You could easily drop what you pay per sale so that it works out to $550 and I would still choose your product to promote over your competitors, even though you lowered the payout because it still make more money. Now if I test another product and it does $600, then I'm going to run it unless you raise your payout.