Earning from a website is not a myth. Many people earn a hell lot of money from their websites.
Pagalworld.com, a famous website for bollywood contents earns around 500$ everyday. And thats too much.
Starting a website needs to buy a domain name. But blogs can be started without investing a single rupee. You can earn money from blogs on wordpress and blogspot eetc.
If you are a good writer, you can start a blog. I will explain about blogging in the next post.
Find out a perticular area of your interest, work on the topic. gather some information and start a website
Website topics:
1. social website for your area
2 .online store
3. dating website
4. informative website
here, website means not always a bought domain, but also free domain hosting sites
once you get visitors on your website, there are n number of ways you can make use of them to make money.