To put it in the simplest terms possible.... A niche site is a site, niche store or blog designed around a specific subject with the purpose of making money.
A niche site or blog can be about anything you want it to be about. The difference between a niche site and a niche blog is very small.
Basically a niche site has its own domain name like www.nichesite.com (I don't think that is a real site which is why I used it). A niche site will have its own domain name such as www.nichesite.com (I don't believe that is a real site, but it could be). A niche site can be set up in any way the author wishes....They don't have to take on the form of a blog. Niche sites are capable of generating enormous traffic in a fairly short period of time when built correctly.
A niche store is exactly what it sounds like. This is fundamentally a store front pushing products with nothing more in mind than making money. Although this type of site sounds like an excellent idea, they have recently been made all but obsolete by Google. In the future Google may decide to allow them to rank high in their searches, but for now they have been pushed to the bottom and don't receive the attention you would want them to get. There are ways of driving traffic to these sites; however, it requires a lot more time and effort (and some methods even require money which in turn has the effect of you the site author making less profits from your site).
A niche blog is a site with the same end goal in mind except these are based around information that will be useful to the people visiting it. A niche blog can be set up as a blog with its own domain name like www.nichesite.com or it can by hosted on one of many blogging sites such as Blogger or Wordpress. The niche blog I am currently putting much of my time and effort into is http://averagemidwestoutdoorsman.blogspot.com. As you can probably tell it is based around outdoor activities in the midwest which technically removes it from the ranks of a normal niche site because it is considered by many niche site builders to have been built around too broad of a subject range. The advantage of a niche blog is that blogs can rank very high in Google searches; however, the disadvantage to a niche blog is that they can take much longer to build a steady stream of traffic.
- Money doesn't come easy, but it is worth the effort