Squidoo is the fairly recent way of building your own websites without really knowing any html and other web design technical know how to create your site.
Your Squidoo sites are called lenses and with these you can add lots of different module sections to your lens to add varying levels of interest or interactivity such as shopping and online participation such as polls and guestbook discussions.
There are other venues of earning money also, such as Ebay, Amazon and the Superstore aswell as Cafepress and even your own affiliate products and services you wish to promote, but by far the overall efective way of making a great lens is unique and original and thoughtful content and building a lens around this instead of the single idea of earning money, this is an after thought and should not be the sole purpose of you Squidoo lens.
You can add text modules to your lens, which are sort of like mini blog posts these are limited to 2500 characters and you should try and fit some quality content into these, maybe you have a niche about making handbags so you might go through a particular article of finding the right materials to do so, but then you decide to split your article into parts were in each part you describe different aspects of the hand bag niche, thus creating a well looked forward to lens with new updated content being added all the time.
Update and keeping your content fresh on these Squidoo lenses is highly important you should not let your lens go stale as they will slip in the search engine rankings once established, but this should be easy to do if you are really interested and into your niche market area.
Your lenses title and decriptions are important too, as it acts like your website meta tags, so it advisable to place your targeted keywords in here and always keep them optimized and checked against what's being actively searched upon.
Like everywhere on the internet though spam is becoming a problem, just recently Squidoo was google slapped as too many people were spamming the system and causing some of the search engines to drop some listings as it contained duplicate content, but now there are certain points in place to prevent this, even though after all this Squidoo is still highly ranked with the search engines especially Google.
Squidoo is a really easy site to create extra pages to either compliment your own website or blog or just stand alone promotional campaigns for certain hobbies or services and products.