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Working out means, while doing physical exercise using any fitness equipment featured in the merchant site. Thus, while you are into fitness or into working out, you can earn cash at the same time. I hope this makes things clear now
does the equipment have to be featured in the merchant site in order to make money while working out?
You mean in the affiliate site floodrod? It's actually up to you. You can feature this on your site or opt for other affiliate links provided to you. Once you're signed up, you affiliate account will give you access to all affiliate links.
If you have your own affiliate site or an e-newsletter, then that's one way of being proactive. But if you're not comfortable with that, you can still earn cash by referring customers to WorkoutWarehouse.com or to Gatelys.com.