Can you make money working at home with a blog? I think you probably can. I imagine it would take time.
First you need to create a blog and then get an adsense account. The good thing with blogger.com is that they are connected with google which makes it simple to get your adsense account.
Adsense is a program that lets google put ads on your blog or website pages. It is a very valuable tool for making money whether you have a website or just a blog.
Everytime you write in your blog and publish it you will have ads show up on your pages. They are always relevant to whatever you are writing about. If you were writing about dog shows you would probably see ads that relate to dogs, dog shows, kennels, etc.
These ads generate money for you. How much money you make will depend on how many people are searching on the information you are providing and how many people are interested in the ads shown. It will also depend on how often you write. If you only write once a month you probably wont make much more than pennies. If you write daily and write more than nonsense you could probably generate some decent pocket money.
If you want to write, first think of something that you are either very experienced in or at least very interested in. You can write about anything you want but if no one else is interested you won't get very far and you will get bored.
Start writing! Write daily. You don't have to write much, 200 words or so is just fine for an entry.
Promote your blog. I use pingalot and feedburner. Make sure to go ping everytime you update your blog. Put your blog in your signature. You can do this on message boards and emails. Tell everyone about it. Word of mouth is great advertising.
Have Fun! If you aren't enjoying your writing you will give up.
Finally, have patience. Things never happen overnight. It all takes time and good faith effort. If you find after a couple of months that you aren't really doing as well as you hoped, just try again. Maybe with a different topic. :)
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