Masood - I earn money from my site in the way that Maryellen guessed.
I first built about 30 plus pages of just content, or information, about chocolate candy, my chosen niche. I submitted my site to some directories and did a few link exchanges with related sites.
After I started to get a bit of traffic (at least 20 unique visitors a day), I then started adding in affiliate links - chocolate sellers of different varieties depending on the particular page topic. I also got approved for Google Adsense, so I earn money from the Google ads when people leave my site via an advert.
I could sell my own products if I wanted or I could add a store and dropship, etc., but I am content with these methods at present. I, too, am still in the learning stage, and I don't want to get in over my head.
Maryellen,
Thank you for your kind words about my site. That is encouraging to me. I currently have over 200 "web pages" on my particular "web site" with the niche (topic) of chocolate candy. Each page is focused on a particular even narrower niche, so to speak.
I understand that there are many ways of doing affiliate marketing as mentioned throughout the forum - squidoo lenses, blogs, etc. Frankly, I don't really know how to do those.
Funny, I know, but when I read the affiliate masters course (in my sig.), the method that I am using just "clicked" in my head. It helped clear the confusion and frustration I was dealing with trying to make money promoting clickbank products with ads, etc.
As joecool mentioned, the internet marketing field is pretty flooded. I thought it would be much too difficult to carve out a piece of that for myself, especially since I didn't really know what I was talking about.

Now, I know what I'm talking about when it comes to chocolate candy - ha ha.
I do promote SBI as an affiliate, which is the company that I used to build and host my site. But that is just something I do on the side because I understand their products now and honestly believe they are worthwhile because I've seen how they have helped me. My main business is my websites. I use the plural because I've been working on another site concept and hope to launch it in the next few weeks.
I figure if I can get a genuine full fledged website built and generating traffic and income every 6-12 months, I will be set for a while. Here's hoping.
Anyway, I hope that helps. If you have any further questions, just ask.