Like me, I am sure you too have come across blog posts of various veteran bloggers that selling ad space in your blog is the most productive and easiest ways to make money from your blog.
The process involves first telling the world of advertisers that your blog can host banners and text links ads of advertisers.
Then, of course, you wait for sponsors to contact you. They will do this based on:
* Your blog's Alexa ranking
* Your RSS feed subscribers count
* Your blog's page rank awarded by Google
* Your blogging platform
* Your blog's design (only minimally I hope)
If you look at these parameters that advertisers consider, then, you would realize that you should first place the Alexa rank widget on your blog followed showing the feed subscribers' count.
I have nothing new to say about Google PR.
You should definitely host your blog on a paid domain and on your own paid host.
Implement these and announce that your blog is open to advertisers on a prominent place on your blog and hope for the best.
Unless you try it, you would stay where you are-right?