Sorry, this post is outdated and no longer relevant, so I have deleted it for the good of all, but yes, if you have a blog with highly targeted traffic, you can indeed make money.
Remember 100 targeted visitors from Search Engines is 1000 time better than 1000 friends of yours coming from Facebook of Twitter. They will never be clicking on your Ads.




It really depends on your niche. If you got good conversion, a not bad traffic blog is far better.
Recently, there has been a good deal of litigation by the
American FTC against blogs and website developers
for not publishing their advertising profits, or potential
connections with advertising networks.
What are your thoughts concerning how this could hurt
the blog world?
I only agree to the fact that if blogs writes an advertisement WITHIN their post, like a paid review, they should reveal that the post is being compensated for. It is only fair to the guy reading the Advertisement.
However, I do not agree to publishing the amount that is being paid or profits made as this can be considered as a trade secret.
I don’t think it will hurt anybody if rules are followed. Advertisers will still seek out popular blogs to publicize their products simply for the fact that the exposure is much better than other Advertising media.