Cloning a product makes a copy of it with every attribute except the name set to exactly the same as the original product. The name is the same as the original with " - CLONED" added to the end. This is an easy way to create multiple products that are mostly identical, by simply cloning the first product and making the small changes that are necessary.
To clone a product:
1 - Go to Products -> Manage Products in the admin site.
2 - Navigate to the entity containing the product you wish to clone, and click the '+' next to it in the tree control to expand the menu under it.
3 - Click on the 'Products' link under the entity you just expanded.
4 - All of the products contained within that entity will be displayed on the right, with a 'Clone' button for each. Simply click the 'Clone' button next to the desired product, and a copy of the product will be copied.