First off, definitely get your own doiman name, it will be a lot better for you in the long run.  As far as monetizing a blog, there are many different ways, you mentioned advertising which is the obvious choice, however you need a large amount of traffic to make a decent amount of money with advertising.  Affiliate marketing can be a great way to make money, depending on your niche.  Amazon and eBay have programs that allow you to show products on your site, and get a % based commission off every sale made.  You can also sign up with an affiliate marketplace, like Click Bank   they have many different products you can sell in a variety of niches.  Some of them pay as high as 75% commission.  You can also run a membership site, where some of the content is free, and the rest is hidden unless you are a paid member.  Again you'll need a decent amount of traffic for this, and really good content.
Good job manikg it appear easy.
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