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There are various methods to generate revenue on your website.

1) Sell a product or service

2) Affiliate Advertising

Google Adsense

A simple form of affiliate advertising is to use Google Adsense. With Google Adsense, you sign up with Google and allow spots on your web pages for Google ASdsense. Then, when someone clicks an adword, Google records the click and pays you a percentage. Affiliate ads are more profitable when the keywords are pricey. Pricey keywords come with competetive Google Adword bids, unlike inexpensive adwords like ’15th Century Volcano Explosions’ or ‘Jonestown was a peaceful place’.

Other Affiliate Ads

Other Affilate ads can be done with companies who allow you to place their banner on your website and track the clicks coming from your website. Then, if the click resulted in a sale, you receive a percentage of that sale. 

The percentages can run low and as high as 30% or more. Basically, if your website can generate plenty of traffic,  you can be a salesman without having to do anything more than opening the door to the company. The company makes the sale and handles all of the tech support. 

An example of affiliate advertising would be having a travel website and using Expedia’s affilate program for flight booking.