I only know what I have read about. There is a lot to it if you want to be responsible. If you search around on Google you can find the answers you're asking, I'll try to go from memory.
Ask yourself what you're looking to get out of it. Do you think you'll be bettering the breed, making money, or getting a future pup out of the litter?
Just because your stud has a great pedigree, what has he done? Is he tested to be free of "defects"? Will you make sure the dog he's going to be bred with will be tested for them?
If your just wanting money, I've seen the price for studding go from what one of the puppies would sell for, up to twice as much if the stud is of serious quality and background. Or you could ask for a pup from the upcoming litter.
These are only answers as I remember reading about it, no opinion on my part.