Right now I'm doing two things. I'm running my home based web design business doing contract by contract, but I must admit it gets daunting at times because of the massive sales aspect of it. Unless I have one or two big accounts to cover business expenses for a while, it become a constant hunt for the next small contract. My bigger love right now is internet marketing. I've been running a startup business blog for the past three years now writing business advice to help other marketers like myself. I'm confident it will pay off one day with aggressive marketing, SEO, and quality content.
I did some research last year, and there are a few nice alternatives out there to make a decent penny from home. You simply need some time and patience though.