if i have my own hosting, paid for, and my own domain name?

[Jake]

Wordpress.org supplied code has no ad or affiliate link restrictions, it's just the hosting arrangement that matters.

"Free" hosts like wordpress.com make some revenue from placing ads on sites they host, some like hubpages and squidoo have revenue sharing schemes, laving it to the users to place the ads.

The popular Adsense ad revenue system requires the owner of the domain name to sign up to the program, those using free subdomains are usually ineligible for Adsense. You can pay a fee to wordpress.com to enable a custom domain on their site, which cuts them out of the ad revenue.

Google's Blogger.com is one exception that allows you to earn Adsense revenue from a free subdomain, unlike some other free hosts they don't levy a host tax.