Earning a living on the Internet is difficult, to say the least, but not impossible. There are many websites that pay people to complete surveys, click on emails, watch videos, complete tasks, etc. however, there are not enough hours in the day for a person to actually make a living doing any of these things.
The only way a person could possibly make enough money to survive on the Internet is by starting some kind of online business or doing freelance work as a personal assistant, writer, marketer, designer, developer, paralegal, etc. and these options require not only knowledge in the field you chose to work but some kind of business knowledge as well.
You could check out websites like Ebay and Etsy, where people sell/resell items they have made or purchased for ideas. I would suggest taking a look at some websites for freelancers such as odesk.com and freelancer.com to see what kind of work, pay, and competition one might find as a freelancer too.
There are a select few that make good money as life, relationship, business coaches using the Internet, however, all of these things require quite a bit more work than a job outside the home normally requires.
Anyone who makes a living on the Internet is most likely very skilled and works many more hours than they would simply getting a job.