A common method that people use to make money online these days is by building what are called "Micro Niche Sites." These sites attack a small keyword or set of keywords related to a particular niche of products or information and monetize the site by using affiliate programs such as Amazon or contextual advertising like AdSense. A major question that people ask about these types of sites is: "Just how profitable can they really be?"
Well, if we are to look at it in terms of return on investment then building micro niche sites can be extremely profitable. Let us take a conservative example and examine it. Suppose you pay $10 for a domain name and build a micro niche site for that domain. Then suppose you are able to get that site to where it is making you 25 cents per day. This does not sound like much money right off the bat, but if we take a look at it in terms of return on investment we see a much different picture.
Since we are paying $10 per year for that web site, and there are 365 days in any given year, we see that we are going to make $91.25 per year off of that web site alone. If you do a quick return on investment calculation, you will see that it exceeds 800%! In the real investment world this would be almost unheard of, as most investors seek a 10-15% return on investment. However, in the online world this type of return on investment is quite possible.
Since $91.25 per year does not seem like much, we must remember that when you're building micro niche websites they idea behind it is volume. The more money you spend and the more web sites you buy and build, the more money you will make. Just take the above example and scale it up. If you were to spend $3000 per year on websites (300 web sites total) and each one made 25 cents per day, you would be pulling in over $25,000 per year. Are we now seeing how nice this can be? These numbers are very conservative, as most micro niche sites are able to make much more than 25 cents per day. Achieving a 1000% or higher return on investment is possible in the online world.
This is not to say, however, that building micro niche sites is easy. There is quite a lot of work that goes into building and ranking micro niche sites, so if you plan to give it a shot be prepared. Also, it is important that you not get discouraged at first when it seems like you are not making any money. Stick to it and sooner or later you will begin to see your daily profit rise. The amount of money you make will be a result of the amount of work you put in.