Using video to make money online is possible, with the video sharing trend. The idea is simple: you upload a video to the site, and the site will pay you based on popularity of the video. Usually it is based on number of views and number of clicks on the ads.

There are not many video sharing sites that pay for user generated content directly. Here are some I have found:

1. Revver
2. MetaCafe
3. Voxant Newsroom

If there are some more, please do tell me through comments. Tips to make money by making videos:

1. Try to limit the the video length within 2 minutes. People are not patient with long films.
2. Funny and hot babes videos generally receive the higher views than other categories.
3. Replicate what is popular on youtube, and upload it to those paying sites.
4. Give descriptive tags to allow people to find your video easily.
5. Spread the videos on your blogs. Distribute it through your contacts and forums.
6. Add watermark to videos and links in description to promote your money making sites.

Anyway, don't expect to make material income in this manner.