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My husband and I started a blog about a year and a half ago. We write about issues important in our smallish urban neighborhood, so it's more niche than your blog.
We built readership with in-bound links. We made relationships in real and virtual life with other bloggers who link to us. We were also lucky that we wrote a few of our first articles really well and those articles started showing up as top Google search hits for certain topics. Once we started showing up in search engines (a process that can take up to six months the way search bots work), some local newspapers and television stations started linking to our stories from their online articles. After about nine months, we could get as many as 1000 hits in a day for popular stories. After a year+ of blogging, we can get several thousand hits for a good (often controversial) story. However, monthly traffic still hovers around 10,000 hits, which, in the advertising world is a fairly low volume of traffic.
You can sign on with Google and other services, who will place ads related to your blog content. Your return will usually be a fraction of a cent per person who clicks through. More profitable is banner advertising, where the site owner places ads from relevant product and service providers. As the site owner you could set your pricing, which would be driven by the market for advertising on blogs with similar levels of traffic. Still, your first priority is driving traffic to your site in order to get numbers to a place where traffic will support ad revenue. You'll probably have to go to daily posting in order to achieve that in a relatively short period of time.
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