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This is very achievable with a parked domain. Which is basically just a website that permanently displays an ad with search results.
You will see this a lot when you do a Google search and you come upon a website with a whole bunch of links and a 404, that domain is parked and they do make money. People click the search results and can bring quarters on the click....
However, you won't achieve this with a lame duck domain name or low pr. If you purchased a site that was like 10 years old, and had a page rank of like 5 or 6... you could then park it and have a decent chance to make money.
A lot of people who park domain names do a lot of domain swapping though. Like, they go to godaddy and buy a whole ton of domains and park them all. Then they go to godaddy's sell domains area and sell their other domains that were parked. This is because a page rank won't last too terribly long on google. So it is a constant swapping of domains to try and keep up with good names and good pr.
Most of the people you see doing this, though, are going to have dozens, if not hundreds, of domains... If you have 120 parked domains that each bring in $20 a month from parking, your doing pretty good.
Just my .02
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