Find a Web Hosting provider
First and most important thing that you can do is to find a good web host provider. If you just Google for web host provider, you will find lots of domain and web hosting provider on the internet. Sometimes on seasonal period, or at the end of a season, they also offer discounts on their package. In package, you can register for a domain name and get certain, let's say 100 MB, for free. It's a good offer. And that would be for a 1 year subscription. So, the whole package would cost around $13-$15 dollars. It's a yearly rate, isn't it a great offer ? You will get access to control panel, database, file manager and other tools to help you setup your space on the internet.
Get an Internet Connection
Now, having setup a web space, you want to go online and upload all your files on that server. For that, you need to have an Internet Connection. You can get subscription from Internet Service Provider. There are lots of schemes and offers that these ISP's provide because of the market competition. For some, you might have to buy a external modem, which will cost you around $30-40 dollars. For others there is a registration fee at first along with the first month payment. Then you pay the monthly subscription from the next month. It would cost around $15 dollars for the whole setup. You will get different bandwidth speed. You will also be able to download limited and unlimited data per month. So you just compare which is good for you. If you are working from one laptop, having a connection speed of 128 KBPS is more than enough. It all depends upon your requirement. If you require high speed, choose packages accordingly.
Design a Website
You have hosted your website and have a internet connection. Now, all there is left for you to is to design a website. You can create your own website. For that you might require basic HTML skills. But just wait. You don't want to design the whole website by yourself. There are front end and back ends that you have to build so that you can also manage web content. You just want a free websites, on the internet. Visit, www.wordpress.org, and get a free and fresh copy of the latest version from the right hand side of the web page. After few minutes, it's ready to be setup. Once you downloaded and installed wordpress, you can post your article right away on your local system. You can create categories, pages, posts, and tags by login as a 'admin' in Wordpress. After that, you can also download free wordpress templates on the internet. You can also customize the look and feel of the whole website, and the font-size, and text-size, all by changing the css file.
With practice of using the wordpress tool, you will be able to post articles or content just in an hour.
Write articles focusing your niche
Now, that you have a website ready, you can start writing. To come up with article titles, you can research on the internet and visit articles directories. You can browse through categories. You can search for some hot topics on Google. You can also read magazines and newspapers, to come up with some article titles that interests you. If you focus your article writing around your hobbies and interests, you will motivate yourself writing those articles in the future as well. Focus on what interests and go and write about it. For example, you can write on travel, history, jokes, foods, swimming. It just depends upon your interests. So find articles titles that would be popular in those fields.
Post your articles on online directories
Once you have posted articles on your website, you don't want to limit yourself. You want to go beyond your own blog or website and post your articles on various online directories. For example, there are free online article directories such as infobarrel, hubpages, constant content, ezinearticles, ehow and it's free, and easy to sign up. You can also generate your earning through writing on these directories. You have to write articles that are interesting, unique, and not copied from somewhere else. That's why you have to write articles on markets where it is more profitable. You can write articles focusing on products that are sold in amazon.com or ebay.com. Become an affiliate with them and write articles focused around them. This is how you earn money. Once you can redirect a visitor to their website, you will get paid.
Advertise and Market Yourself
Once you have a habit of writing three articles per day on topics which interests you, then you might want to have them expose yourself. Create a facebook, twitter, stumbleupon, and technorati account. There are lots of writers out in these social networking websites, and they expose their articles through having other members follow them. The more members follow you, you have more chance of being viewed by their friends. You can also have a small posts about your website written on their blog or website, by paying or promising to put a backlinks on their websites. If you can also find people who have the same hobbies as yours, then it's likely that other people with the same hobbies and interests might want to view your websites and see what you have to offer.
That's it. It's just a overview of setting up a website and having writing articles to provide good content and earn a passive income. You just have to make a habits of writing three articles per month. At the end of the year, you will have more than one thousand articles on different online directories. Experiment what works and what does not. Once you get used to with it, article writing will be a peace of cake to you. And you can be your own boss and earn a living as a writer who writes on topics which interests him.