Thanks grocery momma! Awesome tips.
I'll defintekly refer to this.
question-what is "good" traffic? is 1,000 hits a month chump change or am i getting somewhere? and how can i get a newlsetter going if i am not even sure how to get people to subscribe? I'm on blogspot and slightly "dumb" here.

That's where a service like Constant Contact comes in. They offer a snipet of code and then you place that someplace on your blog. This allows readers to easily sign up. You then log into your account with constant contact and you can use their templates for your newsletters.
Really, when we talk about making money with blogs, you have to look at what type of blog you have. And if your goal is to make money online - you may have to start another blog.
If we look at the three most common blogs, 1. personal 2. informational 3. promotional related.
Personal blogs are great, they are the ones that you write about your family, your thoughts, post picts of your kids. And is far better than therapy!!! Honestly, with this type, you won't make a ton of cash.
Informational blogs offers tips, advice, recipies and other bits of information that keeps readers coming back. Perhaps it's about parenting, on living green or a how to blog. This blog is great for newsletters and banner ads and adsense. Build enough traffic to this type of blog and you can make a nice part time income.
The promotional related blog is where you sign up to affiliate networks and promote products. Perhaps its about weight loss, so you pick out different weight loss products and write up an article about each one and post. In the post you place your affiliate links and if a reader signs up - you get paid. Or you could have a blog about work at home opportunites and you promote ebooks via clickbank. With this blog you earn the most money but you have to work at driving readers to is. You can do this via pay per click marketing.
It's all about your goals with your blog.