Palin, Republican White House hopeful John McCain's vice presidential candidate in 2008, also said she is still considering whether to run for president in 2012 and "having that discussion" with her family about it.
In an interview to ABC News, the former Alaska Governor said she is "looking at the lay of the land for a possible presidential bid and trying to figure that out, if it is a good thing for the country, for the discourse, for my family."
"I believe so," was Palin's prompt reply when asked whether she could beat Obama.
In addition to regular appearances as a commentator on the Fox News Channel and a program, "Sarah Palin's Alaska" on The Learning Channel cable network, Palin has been raising her profile with appearances and by speaking out on policy.
The New York Times reported that Palin was earning USD 250,000 per episode for the eight part reality show that features her exploring Alaska.The first episode was watched by five million people.
The Palin clamour has been growing stronger ever since Republicans captured the US House of Representatives in the mid-term elections.The self described "Mama Grizzly" came into the spotlight after Obama's challenger in the 2008 elections McCain picked her as his running mate. She was then serving as the governor of Alaska.
During her first campaigning stint, Palin quickly became target of ridicule in political circles, the public and the media because of several gaffs she made on critical issues related to foreign policy and the economy.
The former governor has been in the spotlight for writing a best-selling biography and endorsing several of the Republican candidates who won in the mid-term election including Indian-American Nikki Haley.
"She endorsed more than 80 candidates in the 2010 elections, and at least 50 of them won, the newspaper said. She also raised more than USD 10 million for Republican candidates and the party," the Times said.