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About 50% of my online income comes from blogging (high x,xxx). My best advice is to choose a niche you enjoy to write about. This is because, sometimes, it takes a long time to get going.
Be very generous when linking to other bloggers. Doing this, and helping others, often comes back to reward you. Make contacts and friends with the blogging community in your niche, and beyond.
As far as monetization, there are many options. Adsense is probably the primary source for most bloggers. However, check out affiliates, and others like BlogAds, chitika, and Link networks. Once you are established with traffic and PR, sell links/adverts privately on webmaster forums. On a good day, there have been $200 days just selling links on a per post basis.
Expect blogging to take lots of time and effort to make decent money. Many blogs never do.
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