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The gold rush is over, but we should have expected this. Porn on the Internet was new and exciting - everyone was buying, and conversions were great. Between the novelty wearing off, the economy going to the shitter, and free porn on tubes.... Reality has bitch smacked us hard in the face.
There is still money to be made. I have 100 blogs and I put very little effort into them, and I make about $800 a month off of them. I work for Dating Factory and I see stats for dating all day long, both mainstream and adult, and I see affiliates making tens of thousands of dollars a month - not companies, just single affilaites.
The money is there, you just have to find it.
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