Yeah apparently nobody reads Jon's blog here. I guess it depends on how quickly you want to earn a profit. If you are going for get rich quick, you run a much bigger risk to reward ratio. Read: You probably won't like the final results.
If you want something more long term, I'd go for $400 in niche domains (research and lots of time required) and play the power in numbers game. This will result in no profit for quite some time but then you'll start seeing profits after six months using the techniques Jon has already given you on his
blog.
Many have suggested PPC, however, there's a learning curve that will probably blow through your cash with either a break-even scenario or loss (until you learn with testing).
Unless you are awesome about thinking outside of the box, AVOID POPULAR AFFILIATE PROGRAMS!!!!!!!! Seriously, if you can't be REAL creative about selling rap ringtones, hosting, gambling, debt, and others, your 1k will be gone in a flash and a pile of frustration.
Lastly, expect more stress, more hours working, more frustrations, and a LOT of learning compared to a 9-5 "be your boss' bitch" job.