Just being at home, having a pc/laptop, an internet connection and willingness to work can earn you thousands of dollars.
Here are some of the advance ways of doing home based business Google Adsense: Off late this has become a popular way of earning money.
Just have your blog/website, register with Google AdSense and paste the AdSense code in your website code and make your website/blog as popular as you can by posting good articles and uploading interesting stuffs.
E commerce: In this home based business you may need to invest more initially but returns are also more as compared to other business.
Think of any innovative idea that can add value to the customer like dating site, or gaming site or other site which enable online transaction of ideas or services, set up the necessary infrastructure, upload the website and promote it through all means.
You can earn money by charging user for the service or by advertisements or by both.
Content Providers: With more and more websites getting registered there is always demand for the content to be uploaded on these websites, here is the opportunity for you to earn money by providing these websites with appropriate content.
Your earning will depend on the both the quality and quantity of content.
Just do web search and you will many companies looking for content providers.