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Better AdSense Placement for more Clicks

Google's Adsense is becoming a very good way of obtaining a nice steady income online.  The idea is once you have the website up with the content and ads, you set yourself up for a passive lifetime income.  Yes, this is true.
To get the most out of your adsense earnings, you can do some "tweaks" to their placement and styles so you can get a higher click through percentage (CTR).  When I first started, I was getting very low click through with very little earnings a day.  There are many ways to get people to click on your adsense ads, and to get a higher CTR.
What ad unit is better? the skyscraper, the big box one? The big horizontal one? What colors should I make for the ad units?  These are some good questions, and it's always good to experiment around to see which gets the most clicks, but this can get very tedious.
What kind of ads do people like to click on?  Image ads or text ads?  Well, I think that depends on many factors, such as how appealing the image is, and how eye catching the text ads are.  I can't say for sure but I would think text ads are a bit more appealing overall.  But how can you make them more appealing enough for people to click on them so you can earn you more money?
Some things to avoid is to not make your ad, well, look like an ad.  You should position your ads so that it appears as if it's apart of your site and not something that just looks like an ad.  This is probably the most important principle you need to know when it comes to maximizing your adsense potential.
Remember the old days when banner ads was the only solution for advertising online? Everyone quickly noticed that they were ads and a link that would take them away from the site they are currently on, that did not seem exciting to anyone, unless the site they were on was horrible,.  The key is to make it so when users see an ad, they think it's just part of your site and looks as if it would take them to another page within the same website.
To make this work, you have to know if more or less ad units work better or not on your site.  You have to know which colors to use, if you should use a multitude of colors, or just stick to one color scheme.