One way is to allow business owners to advertise in space you have allocated on your blog or you can use your blog to promote one or many affiliate programs. If you choose to exploit the full advertising potential of your blog you may want to concider having a google ad sense account. Let us take a look at the options in more detail.
AFFILIATE PROGRAMS: As an affiliate you are in a position to choose from hundreds upon hundreds of programs to promote. As an affiliate you will be promoting a specific offer or product from a company which you will receive a commission upon every sale made.
Let's say you found a good program to promote about Golf, not only will you set up your blog to promote your Golf affiliate program but you could then approach related Golfing companies with a view to selling real items. Join Amazon and Ebay and promote all the their best sellers via widgets in your side columns. This gives many various outlets for earning commissions.
Your fees are usually a fixed percentage on the price. Maximising your blog to it's full potential is very important, Having quality content available for the reader along with special discounts, free promotions, and news letters all go towards encouraging your readers to click through with a view to purchasing your affiliate products. Taking time out to really learn how to optimise your blog is imperative to turning it into a revenue generator
ADSENSE: Working with google is a good move and they have some great advice and tutorials for adding ad sense to your blog. You will have the decision on where you place them and you'll be paid each time an ad on your site is clicked on, irrespective whether that click turns into a sale. A word of advice here is try to incorporate the ads to blend in your site as though part of it. Use the colours and fonts similar to your site. Making them stand out too mush looks too much like oversell and will put your customers off, probably resulting in you losing them for good.
An absoloute NO NO is clicking on the adsense links yourself or getting family and friends to continually do so. Fraudulent clicks are not worth the penalty you will receive from google and they are very clever indeed at identifying them. Being dishonest with google will cost you dearly.