There are many different ways to generate income over the Internet. The two that I find that work best for me are Affiliate Marketing and Google Adsense.

1) Affiliate Marketing

Affiliate marketing is one of the most popular means of income over the Internet. There are many companies, large and small that have products and/or services for sale. These companies often look for other people to advertise their products for them. You, as the Affiliate advertise these products for these companies and for every sale you make you earn commission. There are 100's of different affiliate programs available on the Internet, selling just about any imaginable like eBooks, software, holidays, air tickets, consumables, you name it. The commission you earn on these products can be as high as 75% or even more! Digital products such as eBooks and software tend to earn the highest commissions.

For many of affiliate programs you need your own website to advertise these products on and websites can be extremely expensive to run. Fortunately there are other programs that don't require you have a website such as CLICKBANK and PAYDOTCOM. Now you can advertise using PPC (pay-per-click advertising) on Google, Yahoo or some of the smaller search engines, which can work out a lot cheaper.

If you're a hard worker, then Affiliate marketing online can earn you big cheques every month.

2) Google Adsense

If you own a website or blog, then Google Adsense is an absolute must!
On many websites and blogs you will often see ads sponsored by Google. These ads are normally seen on the sides of the web page or within the text.

Every time one of these ads is clicked on, money is spent as well as earned. The company running the ad through Google will pay every time someone clicks on their advert and the person that owns the website that the ad is on, gets a portion of that money. Some ads will pay a little as 1c/click whereas others can pay as much as $5, $10, $20 or more per click!

So all you need to do is open a Google Adsense account, get the required HTML from your account then insert the HTML into your website or blog. The content in your website will determine the type of ads you will have shown, for example; if your website is all about "model trains" then the ads shown by Google are normally of that same topic, thereby increasing the chances of someone clicking on your ads.

If you don't have a website or blog, then get one and start making extra money.