They send a 1099 misc. income form that you use for your taxes. It list the income you earned and any the free product in a $$ amount. We go to an accountant so I supply him with the idemized deductions and the 1099 and he puts it all together. Saves me time and makes sure I have everything in the right places.
If you have any other questions and are not working with anyone feel free to e-mail me. I'll be glad to help with anything you have a question with.
Good luck with your venture. It is a step in a good direction. You have nothing to loose and everything to gain!