I've dabbled with it in the past, but I'm not a huge fan of it; I think it works slightly better with forums and communities with a sustained user base, though for the typical blog it can be quite hard.
I've personally always liked Contributor Teams and Freelance Writers who normally produce more moderated stories on a title commissioning process or something similar
Guest posting can be great in a lot of ways. Depending on whatever niche your blog is in, you may have individuals reach out looking to publish a post on your blog with some type of backlink. So long as the content of that post and the backlink are relevant to your niche, then it works. You make a small sum of money for the backlink, and then you get more content on your blog as well.
You also may come across writers who are interested in forming like an ad sharing partnership of sorts. They publish content on your blog, and then get to take a percentage of the ad revenue that is made from any of the posts that they made.
The only experience that I have had with this is writing a guest blog post for someone else's blog. It was something nice to do and to get my blog out there to more people.
I have never tried it myself because I wonder how it would work as my blog is a personal blog. It is centred around my thoughts, feelings, experiences etc so I am bit unsure how I would suitably publish a guest post. But I am perhaps open to the idea if I can find a working solution!