It depends on the traffic you are getting each day as well as on your niche.
You can use Google Adsense (Most common way to monetize a blog), CPA offers, affiliate programs(Amazon, clickbank) & selling ur services.
Just my 2 cents :)
No, Google doesn't care about it.
There are many Famous sites which have 100s of links coming from 1 single IP/Domain.
I personally know people who does buy/build high PR links from 1 single domain. It helps them increasing their SERP.
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