Sign up for your Google Adwords account.
Google adwords will charge you a small activation fee (Rs.300 PKR) and i guess its 5USD.
In Campaign Management, click + New online campaign- > Start with keywords.
Name your campaign and ad group, target customers by selecting the language and country
Create an ad, add the heading, description and URL of the ad and click continue
Choose keywords, keywords must be directly related to your ad.
Set Pricing, Enter Max CPC bid, CPC is the highest price you’re willing to pay each time a user clicks on your …

Google Adsense:
Google AdSense is a free program that enables website publishers of all sizes to display relevant Google ads and earn. Google adsense helps putting up content related ads on the website and you are paid for the clicks made on them by the visitors.
Affiliate Marketing:
Affiliate marketing means promoting any product e.g on this very blog of mine I am promoting two hostings (hostgator & hostmonster). When a user will sign up using these referral banners I will be paid for that.
E-Commerce Website:
Another way of making money online is to …