So let me start out by answering your first question: where does the income come from? I go into this in greater detail in my How to Make Money from a Blog post, but it sounds like you’ve got the idea. My main source of income is through ads, but I also earn money through my books and courses, affiliate commissions, my Etsy store, and occasionally sponsored posts.
Write several posts about a certain topic. If you have written about the best fishing lures once then don’t be afraid to revisit the topic later on. People need reminders to get inspired and to take action. And you’ll learn more about the topic along the way and may have a slightly different view now that you can share. Plus, you’ll get new readers that haven’t read what you wrote a year ago.
I’ve known Ruth for years.  She is one of the authorities on blogging.  Four months ago, I caught up with her at BlogHer and she gave me a small piece of advice that transformed one of my blogs.  That blog went from 30,000 unique visitors into 300,000 in a matter of months.  If there was one book that I would spend money to buy, this is it.  From the basics of blogging to in depth marketing and income generation, Ruth really knows what she is talking about.  You don’t have to wonder if she really practices what she preaches, she shows you her real numbers.  Buy this book, it will change the way you look at blogging.  
Ninja Popups – The best $20 I’ve spent on my website in 2015. This one lets you create a popup windows that show up in front of your content and can help you readers to sign up for your newsletter, share your website on Facebook and many other things. It helps me to add about 30% more new email subscribers a day to my Positivity Newsletter. To not annoy people, be sure that his window is only shown once for each of your readers.
Make sure that you're always posting amazing content. The better your content and the more interesting your blog, the more people will link to it. There is nothing better than getting free links just because people liked what you have to say! Keep your mind on the SEO side of things, but also remember that you are ultimately catering to the needs of the people in your niche. If they like you, the search engines will like you.

Sometimes I think we just need permission to do the things we love without having to make a living at it. So I'm giving you permission. I'm telling you it's fine for you to have a blog that gives you an outlet for your creativity, allows you to talk about things that are important to you and lets you stay connected to friends and family. You don't have to try to monetize your joy.

Lets say, for example, that you refurbish and resell used smartphones out of your home. You could use a blog to attract visitors to your website where you list your current phones for sale. Your blog might cover topics about DIY refurbishing. On one level, it seems counterintuitive because you want people to buy your phones, but it also helps you build a brand and gain recognition. Social media guru Jay Baer explains the concept on Copyblogger:

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