Just to throw in my $.02:
I also run an automotive niche' site (for Toyota Tacoma enthusiasts). I began my "premium" membership program about 9 months ago and it was embraced by almost all users. When designing this new membership structure, I took many cues from Jeremy and ColoradoK5 (thanks, guys) This is what I discovered was the key: think of things that your users will find value in, but won't cost you any extra money. Letting users post images (PhotoPost), an email account, etc. are good examples of this.
So, I created three levels of membership: Regular, Plus, and Premium (kinda like deciding which gas to get at the gas station).
"Regular" users are just anyone who registers on the forum. They can read and post in any forum area and can view images in my PhotoPost system, but cannot post any images. This is the default group in 'Threads.
"Plus" members can do the above, but get 3MB of storage in the photo gallery (PhotoPost)
"Premium" members get the above, but get 5MB of storage in the gallery, their username in "Gold" in the forum (that's #B0B02B in hex, hehe), and an @CustomTacos.com email account (SquirrelMail).
Both Plus and Premium members receive a membership pack with a site logo sticker (free advertising for the site), a membership card, and details on receiving discounts with online vendors whom I have created relationships with.
I'll agree that banner advertising is definitely NOT where it's at right now. But, between the small amount that I DO get in ad revenue, membership upgrades, merchandise sales, and donations, I'm actually profitable this year..and it feels GREAT!!!
I hope this has give some of you guys some ideas on how to at least break even with your sites. If you have any questions, I'd be more than happy to give advice or clarify how I run my site.
Jeff
CustomTacos.com
The Ultimate Resource for Tacoma Enthusiasts
