"but find a niche that would have a number of keywords that pay 50 cents to 1.50 or above.
The fact is that there are hundreds of niches like that - many had great success with photography and DVD. But you have no know what you are doing - for instance - digital cameras are one thing and Photoshop are another. Also different brands of digital cameras pay differently. What you are looking for is to find a niche that would have subniches and would guarantee that there is large enough pool of advertisers so your website will bring in money for years to come.
For instance (real world example) - photography is excellent niche. In it, there are other subniches that pay well - digital cameras, photo equipment,Photoshop (and other software), image recovery, red eye removal (that one isn't very profitable), wedding photography ... There are hundreds of advertisers, so you'll never go broke and are likely to average 20 - 30 cents a click, provided you attract quality audience." DavidDeprice
