Not to be confused with RSS feed banner/text advertising, RSS sponsorship often involves a post being sent out to your RSS subscribers only, promoting the goods/services of the sponsor. Here's a great tutorial on how to publish exclusively to your RSS feed through WordPress.

Advantages: If you have a large number of subscribers to your RSS feed then you can make some serious money from offering RSS sponsorship.

A huge advantage of doing this is that you don't actually need to post anything on your blog directly (perfect if you're conscious of making it look too commercial) and it will be solely shown to those who already follow you.

This reduces the risk of putting off new readers dramatically and gives you a great revenue generator in the process.

Disadvantages: One stumbling block that you may find here is that you will often need a large RSS subscribers list to be able to generate any kind of income from this method.

Even then, the uptake on RSS sponsorship has become less and less of late, so you may find that other RSS-based advertising strategies are easier to implement.