what is the best way to make money with a blog?

That answer may change as the rules regarding online advertising shifts. But..

I think the best way is to find a specific niche, something your good at, a hobbie or something. Then try and present tremendous value to your readers with videos, pdf checklists, free information all while building a mailing list.

Then work on create an information product that your following will enjoy, use, love and ultimately purchase. You can do other things too like getting non-competitive sponsored advertisements.

So, if you were selling an ebook on lawn care tips, you could have a pad advertiser that offers equipment. Ultimately, it is not as easy as just throwing up a blog about your daily life. Blogging about mowing the lawn is not the same as blogging about how to overseed or build a sprinkler system.