I agree with the others - once a week mailing is not often enough. Increase the mailing schedule and you will get increased results from the mailings. Sure you'll have some unsubscribers, but like was said - they probably werent going to purchase anything anyway.
Also - Ziki said: "I would try to find a good writer and to create some exclusive content, a new ebook which would help you to grow a targeted list and gain reputation."
This is the single most important advice you've been given so far.
You want to build yourself as an expert to your list. When they think about your niche, you want them to think of you as the expert in that field. If you do this right, you will eventually be a "rock star" to these people, and when you recommend a product, they will purchase it based on your recommendation.... and you make money!
Go on elance.com and pay someone to ghost write an ebook related to the topic for you. It has your name as the author, your bio in the book, and then give it away to people that opt in to your list, as a bonus when ordering, etc.
After you have spent some time building yourself as an expert to your niche, give some thought to how you can build in a members only website. Is there information within your niche that people would pay $10 - $30 a month for a membership? You have a captive audience of 25K people. Run some numbers. If you can get 250 of them (only 1%) to each pay you $20 a month, then that is $5,000 and you've reached your goal.
IMO you will make more money selling memberships to a members only website than you will by trying to sell advertising on your site. Plus selling advertising means that, for it to be effective for the advertiser, you have to lead people OUT of your website. Not a good strategy in my opinion.
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