I got this question from a friend of mine and thought I'd share my answer with you all.
Here are the questions:
Can advertising revenue be derived from a WordPress blog?
Can the blog owner manage their own advertising links?
Does WordPress have any revenue sharing available for their advertising streams?
As in all things in life, “it depends.”
There are 2 kinds of WordPress blog – hosted by WordPress.com or “self-hosted”. If the former, then the answer to advertising is generally “No.” If the latter, then “Yes.”
I know you asked 3 questions 🙂
But the central point is will you be hosting on WordPress.com or not? If so, the answer to all 3 Q's is generally no (stay with me here)
If you're self-hosting (i.e., you buy a domain name and set up a WordPress blog on your own host, like HostGator (that's an affiliate link and how I can be compensated even without money changing hands between you and me), then the answer to the first 2 Q's is yes. There is no answer to the 3rd question if self-hosting — you wouldn't want to share your advertising money with anybody else.
So why generally? WordPress.com does allow certain bloggers to run ads; they call it WordAds. I think it's subjective. They say on their site:
“We have a feature called WordAds that lets WordPress.com bloggers with moderate to high traffic and appropriate content turn on ads and earn money from their blogs.”