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I started by making "niche" sites [lots of them] and putting AdSense on them.
Currently, worried about how Google operates and wanting to liberate myself from the bottom of the internet business food chain, I now make my own Informational Products and I am putting together a network of sites that I will use to sell traffic from.
Creating niche sites is a good why to start though, you learn SEO and you can create some cashflow relatively quickly, but it is also a trap IMHO.
Jon
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