There are many people on the internet today making decent money by building what are called "Micro Niche Sites." The concept and approach behind these types of websites is very simple. Take a small niche, whether it be information related or product related, and build a focused site around specific keywords. Building your sit around specific keywords allows you to rank more easily on search engines like Google and bring in traffic when people search for these specific keywords.
It is not quite as easy as it sounds, however. First you must have a little bit of knowledge when it comes to building websites. You must then be able to accurately find profitable niche keywords that not only get enough traffic to make them worth while, but these keywords must also have minimal competition in order for you to be able to rank high for these keywords. This is called "Keyword Research" and can be very time consuming if not done properly. It is also important that the niche you are targeting is a profitable one, or at least one that will pay enough to make your efforts worth while.
Once you find a niche to target, building the web site is the easy part. The hard part comes in trying to rank this website by providing various types of back links. Back links are obtained by many different ways such as social bookmarking, forum signature posting, writing articles and submitting to directories, and much more. Ranking a website takes time and constant effort. If you stick to it, however, you are sure to see your website slowly climb the ranks of Google for your keyword.
Micro Niche websites make money in a variety of ways, but primarily using either affiliate programs from online stores like Amazon or by displaying pay per click advertisements from networks like Google AdSense. AdSense uses scripts that you insert into your web pages which automatically scan your page and display relevant advertisements. When visitors click on these advertisements, you will receive a payment that can range from 5 cents all the way up to several dollars. The amount you get paid depends on how much the advertisers for those ads are paying to display the ads.
Since Micro Niche sites are typically very small, it is common for people to build many micro niche sites to increase income slowly over time. There are many people who make a very good living building micro niche websites day after day. If you decide you want to give it a try, be sure you have the patience and are willing to put the work in. You will not see much money at first, but if you stick to it you will surely see your income grow month after month.