Step 1) Online Journalism is a popular way of making a residual income online. Popular online journalism websites include ehow, associated content, helium, triond, bukisa, and groundreport. .

Step 2) Marketing your own product is also a commmon way to make money online. For most, this takes the form of marketing an ebook which you sell for say $5.99 on your blog, website, etc.

Step 3) Blogging is also another common way that people make money online. You make money by allowing google or adbrite to sell their ads on your blog. 

Step 4) Online data processing and product reviews is also a common way that people make money online. There are hundreds of ways to make money on the internet--these are just some of the most common for reference.