There's actually several methods. The easiest method is to just go to http://www.blogspot.com/ / http://www.blogger.com/, which is free. That is the easiest method. You can be up and running within minutes of starting it. Although, for the best method for more advanced users would be to get a hosting service and domain name (yourname.com). Therefore you won't be under anyone's thumb, but your own, so to speak.
From what I've read, is that you can place adsense ad's on your Blogspot/Blogger blogs (there might be a service for it right in those blog hosting company's). I've been using my own '.com', so my knowledge with the adsense on those free blog hosting sites is a bit limited. Last I heard, is that you can be earning revenue (some nice side money) from just having those ad's on your blog. Imagine earning $5 bucks even before you wake up in the morning. Sure it's not much, but it feels pretty good in my opinion. There's people out there with blog's (check out http://www.problogger.net/ for one example) that earn much more then that.
A good rule of thumb is to have your blog have a focus on what it's about. Is it about tropical vacations? Computer tech? Fishing? You get the point. The reason behind that is if someone wants to read some perspectives concerning a topic of interest, they can check your blog out and review information and with that other information concerning similar topics.
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