Is it a good idea to add PPC ads on a website that sells affiliate products or would this send away potential customers who might click on your affiliate links and buy from there?
Commissions you earned from affiliate products are usually way higher than what you get from PPC ads, but it is harder to get people to buy the affiliate products so you can make some money.
What do you guys think?

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There is nothing wrong in having the ppc ads on sales pages until and unless you dont put up those ppc ads on top of the page or prominenty displayed in the middle page. Instead you can put those ads on the bottom of the page and hence you will at least earn from it when users scroll to the bottom and finds something interesting to click and not intersted in ur sales!

Put your PPC ads on content pages only. And yes, there is always the possibility that you will lose a conversion due to a PPC click, but it helps recoup a lot of the advertising costs.

So, don't put it on your main landing page - but content pages are perfectly okay.