Step1
Obtain good domain names. A good domain name is short (3-4 letter domains like http://www.wncy.net are in demand) and/or includes keywords or keyword combinations. Health, travel, business, and career-related domain names usually deliver the highest EPCs (earnings-per-click) on advertisements, so look for simple, easy phrases related to those categories (something http://www.answersforbusiness.com is a great example).
Domains are monetized primarily through direct navigation -- users typing the URL directly into the browser -- so a short URL, or a keyword-rich URL, is critical. The domain name has to be something that enough users are likely to type into a URL on a regular basis (fortunately now that there are 1 billion plus people with web access, this isn't such a rare occurrence).
Find and register your domain names through the services of a domain name registrar like GoDaddy (http://www.godaddy.com), eNom (http://www.enom.com), or Moniker (http://www.moniker.com). If your desired domain name is already taken, don't worry -- unless the domain is being used for a content-based web site, you can usually buy the domain from its owner, and often for only a few hundred dollars. This can be the best and sometimes only way to acquire a short or keyword-rich domain. Visit the domain directly to see if there's a notice about the domain name being listed for sale; if that fails, the registrars listed above often provide broker services and will work to acquire the domain on your behalf.
Step2
Once you have at least 5-10 domain names, select a domain parking service. These services will place advertisements on your website, usually for free, and pay you a share of the revenue. Usually the ads are CPC (cost-per-click), meaning you are paid only when users click on an advertisment.
Again, many of the registrars offer parking services -- you can check these out through the My Account section of your registrar's website. But, for higher-caliber keyword domains (like http://www.businessintlgroup.com) or short domains (like http://ypay.info), you may find that a parking service like Sedo.com, TrafficZ, or Gold Key offers higher payouts.
Sedo.com is recommended for international (non-US) domains, or for users with a smaller number of domains in their portfolio. GoldKey offers great payouts but is more selective in who may use its services - it favors users with lots of domains, proven traffic, or great targeted domain names like http://www.dadebiz.com. TrafficZ is interesting because it offers pay-per-impression advertising, but like GoldKey it is selective in who can sign up.
Another thing to keep in mind is additional options offered by the service provider. All of the above services offer different methods of optimizing your domain around a keyword and page layout. Generally, the more exclusive services provide greater flexibility in customization.
Step3
Follow instructions from your registrar and parking service for moving your domain names to the parking service. This usually involves changing your name servers, which is way easier than it sounds. Next, use your parking service's optimization tools to select keywords, layouts, and other options. Keywords will determine the type of advertising that's placed on your page, so it's important to pay attention to those.
Monitor your domains' performance and make changes to improve your advertising payout. For example if you are trying to monetize a site like http://www.startbizness.com, experiment with different keywords like Business Plan, Marketing, Law, etc. until you get the right mix.
Novice 
